In developing this article, I asked multiple sources, by putting both contractors and adjusters together in a room, what indisputable facts can be found on a property loss, if the contractor and adjuster were standing in the same property at exactly the same time. It became comical, and largely frustrating. What seemed straightforward to one was instantly knocked down by the other.
At some point, I actually said “come on guys, it literally can’t be this hard”, a former adjuster and 15 year respected industry veteran replied “if it was, we all wouldn’t have jobs”. At least that got everyone laughing to get to this sad state of a lackluster list: The measurements of the structure, if an item is damaged or not (not the extent of damage or how to handle it, just that it is actually damaged). Policyholder satisfaction should come first (in nearly all cases) and there’s no such thing as too much documentation. It became exhausting, we couldn’t even agree on how to detach & reset a toilet. Seriously. Think about your last 5 toilets and ask the next seasoned adjuster how they would expect the estimate to look with even one complication. All jokes aside, it’s much tougher than one would think.
In 2015 there was a massive controversy behind a dress and whether it was black and blue or white and gold. The arguments that ensued over the dress became a comical newsworthy frenzy with the strong opinions founded on what each viewpoint considered to be fact. I believe the same will always hold true for our industry; one thing can always be seen multiple ways.
However, let’s for a moment see what a future in insurance claims could look like with technology solving some of those aforementioned indisputables.
If a carrier requires documentation consisting of accurate measurements, room naming conventions, documentation of the cause and origin of loss, affected rooms, and a sketch in their approved platform… why is it a requirement of both the contractor and adjuster to complete? When done properly, it’s the EXACT same thing. The problem is that we’re all human and not perfect. We’re tired, forgetful, sometimes lazy, busy, and really, really distracted.
The other issue we regularly encounter is that hardly anyone visits the loss at the same time. IF an adjuster is dispatched to see the loss, the contractor doesn’t even know about it until the insured brings it up after the fact. Even when it comes to six+ figure losses we hear about a collaboration on both sides less and less. It’s no wonder why everything is so contentious.
According to a report by the Insurance Information Institute, a significant majority (up to 35%) of our industry could be retiring in the next 10 years. With a massive reduction of top-tier talent and industry knowledge leaving our workforce we must first all agree that, how we’re currently doing things today absolutely has to look different in the very immediate future in order for the knowledge to survive.
I believe that technology can help bridge a few of the major pain points in the industry and surprisingly enough, it already exists.
The technology exists today to comprehensively document a loss and cover each and every one of those requirements. If this could be solved, understood, and respected from both sides, it would allow for less time wasted and more effective time with the person who actually matters, the overwhelmed policyholder who’s life was disrupted. A proper neutral technology can not only solve this, but perhaps add some joy back into what really keeps us all in this industry. Our customers.
Let’s talk about how some of this can actually be achieved today.
First and foremost a trusted and consistent property measurement tool must be in place, one that is pinned up against a trusted veteran of the industry from both sides in a real life claims and catastrophe setting. This absolutely requires a controlled setting, proper documentation, and multiple scenarios which can be achieved in the field. If this cannot be achieved and consistently, why would the industry tolerate obscurity?
Secondly, a method to visualize the property. We should be well past a standard photograph, with the introduction of 360° technology, panoramas, drones, LiDar, and others. I cringe when I see a photo as a method of standardization. Stop settling for an archaic method that does not tell the story or show the origin of the photo. The technology grows and learns the more you use it. Step one: USE IT!
Documentation: Understand and verify the required documentation for every carrier and TPA. Our industry suffers as a whole with a lack of documentation. The documentation should include notes, potential fraud flags, connotations, the ability for intelligent reserve and ALE estimates. Then, immerse yourself into the most common issues your business faces when it comes to an adjuster or a TPA. Use all of these mandates and pain-points as a means to determine which claims software is right for your business. Ensure it’s faster than your human in the field, if not, why would you buy it?
Throughout my restoration career , I’ve been mandated by carriers and TPAs alike to use technology which has not always worked or been sub-par. The industry should not have to settle.
I’ll say one of the biggest questions I’m constantly asked is… Will the carrier pay for the technology? The honest answer, if it’s the right one, they should and will. A proper claims documentation technology should make it to where the insurance carrier can raise their desk limits, see into a claim, trust what is being presented, and make educated and informed decisions with purview that didn’t exist a few years ago. A technology that has all three of these components would also help a carrier flag risk, ensure that the policy is written correctly upon its next renewal cycle when the post-repair 360° views are presented to show any upgrades, and heaven forbid a subsequent claim happens in the future. The fact that solid documentation was completed may allow for both parties to actually agree on what to do and how to do it.
Kimberly Burdi-Dumas
Having grown up in restoration, Kimberly saw the extreme highs and lows of the industry, cultivating a desire to make a significant impact and positively change the industry for future generations. During her tenure, she has affected change in multiple verticals of the industry including restoration, textiles, TPAs, carriers, and is a strategy driver in the claims technology sector. As the Director for Insurance Strategy with DocuSketch, she is committed to impacting the industry through education and standardization of systems and processes as a six-sigma green belt.
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