Catastrophes are expensive. They take a toll in terms of financial losses to policyholders and insurers. They have a personal and physical impact on adjusters, contractors and other first responders. And they are emotionally, physically and financially draining for residents and businesses.
Following a catastrophe, everything costs more because supplies are at a premium. Rates for adjusters, vendors and contractors are higher because they are staying away from their homes and families, working under extremely stressful circumstances with a severely impacted infrastructure, and everyone and everything is affected by the stresses and physical demands of the job.
Over the last few years the insurance industry has had the opportunity to catch its collective breath because there has not been a major disaster impacting a large portion of the country since Hurricane Sandy.
When a disaster the magnitude of a Sandy or Katrina hits, any issues like supply chain problems, insufficient training or insurance gaps become painfully exposed and at that point it is too late to fix them. The respite has allowed insurers to retool some of their processes, update their hardware and software, train or retrain adjusters and claims managers, and use the opportunity to learn from previous mistakes to prevent them in the future.
Hurricane season doesn't start until June and prognosticators predict it could be an active season, so those involved in catastrophe response have an opportunity to evaluate what they'll need for the coming months, identify vendors who are knowledgeable and dependable (see our CAT Response Guide in this issue), train adjusters and claims managers on what to expect and how to manage a large volume of claims, and ensure they know how to utilize and maximize existing technology. (Of course if the power grid is down, technology may not be quite as useful.)
This issue of Claims takes a look at preparing for a wide variety of perils including earthquakes and floods. We provide insights on what adjusters need to know before they enter an area that has been impacted by a major catastrophe, provide a checklist of items to take when you're venturing into the great unknown, and highlight what makes a great CAT adjuster. There will also be a panel of experts addressing the topic at the 20th annual America's Claims Event in Minneapolis, Minn. which will be held on June 22-24. You can find more details at americasclaimsevent.com.
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