In this piece Glyn Brookes-Humphrey, Director of Regional Operations, Woodgate & Clark, takes a look at how insurance brands can cope with surge events.
Surge events are a fact of life for insurance professionals, but an increasingly common one as climate experts predict a rise in the volume and intensity of extreme weather eventsi. Along with the rest of the insurance industry, however, the loss adjusting sector is facing recruitment challenges with around 5% of senior adjusters retiring each year. Tackling that talent gap is essential, both via organic growth from within the loss adjusting community, but also by attracting the right talent to the profession in the first place.
We have often been called the ‘fourth emergency service’ and we certainly go to much greater lengths than a breakdown assistance company to support customers in their hour of need but as we all know, insurance has an image problem, so in order to help build our resilience to surge, we need to dispel some of the misconceptions that exist and do a better job at conveying the special mix of personal and technical skills that make the loss adjusting profession so interesting to work in and a great career choice.
So, what is a surge event and how can the loss adjusting industry ensure that all the skills and resources are there to tackle them when, by their very nature, they remain unpredictable?
In essence, an event becomes a surge when the new claims intake is beyond the resources of local or allocated staff to manage, and support is needed from the wider business as claim volumes remain elevated. Recent examples include the volume of subsidence claims after the record-breaking temperatures experienced in the heatwave of summer 2022ii. At the other extreme, in December 2022iii, the UK was experiencing severe flooding and freezes with a surge in claims related to burst pipes. Coming right up to date, there has been a succession of storms with the latest figures from the ABI showing that 48,700 claimsiv were notified for storms Babet, Ciaran, and Debi.
Support through thick and thin
Given the nature of surge events there is a danger that a loss adjusting career might be viewed as ‘feast or famine’. That’s a misconception though, as the work of loss adjusters happens 365 days of the year. The fact is that the loss adjusting experience and expertise that insurers and their customers expect in often distressing circumstances can only be sustained if that resource is supported during non-surge periods. Fundamentally, adjusters can best maintain realistic levels of support and cover if they are provided with the right levels of work during periods of ‘business as usual’.
Standing out from the financial careers crowd
With regards to recruiting new talent, attracting employees who can deal with a claim in an empathetic, yet efficient manner, who relish helping to get a person or company back on their feet as soon as possible, is key. Getting the messaging correct in job adverts, at careers fairs and on professional networking sites is fundamental to attracting the right type of person, and by investing time up-front, they are more likely to remain in the loss adjusting sector.
Mentoring organic growth from within
As well as attracting ‘new blood’, investing in existing talent is vital to ensure the industry has the talent to handle the ever-increasing number of surge events. Everyone feels more equipped to handle a more complex claim when help is by their side, but that support should start from day one. By providing a more experienced mentor to advise and guide those less experienced adjusters, on a day-to-day basis, encouraging staff to gain professional qualifications by providing fair time off for study and exams, helps speed career progression in a safe environment. With such support, all adjusters will have the experience and assistance required to step-up and handle claims in a surge event. At Woodgate &C Clark, loss adjusters can then follow the ‘Major Loss Pathway’ which provides exposure to large, more complex losses, ensuring their career pathway is clear and can remain an attractive ‘job for life’.
It’s not just about adjusters in the field though, ensuring that desk-based support teams are upskilled and supported in a similar way means they too can step up to the plate by assisting field adjusters in times of surge.
As loss adjusting companies seek to replace top talent who have retired, the industry must take a two-pronged approach. Getting out there to attract a new, diverse range of individuals who have the aptitude to take on one of the most unique professions in the insurance business is one prong. Making the most of the talent that is hiding in plain sight within the industry is the other.
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