Thursday 14th May 2015 - PowerPoint Presentation

Slide1

Thursday 14th May 2015

Managing the Adjustment of a Major Catastrophe LossSlide2

C22143-003-r09.pptx Page 3

Your Presenters...

Anthony “Nino”

Scariano

Senior Executive General Adjuster

2

Gary Brown

President/Chief Operating Officer

Jim Podesva

Senior

Executive General

Adjuster/ Vice PresidentSlide3

SCENARIO

Imagine a large multi-national company that makes many things – especially BEER. They sustain wide area damage to many of their facilities when a hurricane hits the Eastern Seaboard of the United States damaging manufacturing, real estate, and all manner of property....Slide4

INITIAL MEASURES

What are the things that need to happen as soon as the loss notice comes in...Slide5

INITIAL MEASURES

Who will be the Loss Adjuster? Is there a designated adjuster or adjusting firm in the policy? Will the market appoint the adjuster, or even a co-adjuster? Can the broker appoint an adjuster? Slide6

INITIAL MEASURES

First contact with insured, broker, and or claim perpetration firm;Determine locations and severity;Advise on mitigation aspects;

Do you need to look at ALL locations;

Obtain copies of the policy and identify variances;

Provide preliminary advise to the market and seek confirmation and instruction on claim management strategy;Slide7

Planning

On a loss of this magnitude, the Loss Adjuster will: (1) manage the investigation of the claim to develop the information needed to measure the loss under the policy; (2) provide clear communication to the insured and the insurers documenting the adjustment process; (3) assist the insurers in developing settlement strategies...Slide8

SELECTION/MANAGEMENT OF EXPERTS

How to determine if experts are needed?When do you engage the expert?How to reach agreement when specific insurers have a “favorite.”

How will the adjuster manage the experts activity

Budgets – Fee funds

Communications with the insured

Communications with the insurers

The over-zealous and under-zealous expertSlide9

STEERING COMMITTEES

Deciding if you need one?Who will be on the steering committee?What will their responsibilities be...

Approval of fees?

Approve correspondence with insured?

Make decisions on quantum and coverage?Slide10

MARKET MEETINGS

When do you need to have a market meeting;

Can you accomplish the goal with a conference call or a “dial-in meeting;”

Location for the market meeting when your insurers are on different continents

“Preview” key issuesSlide11

MARKET MEETINGS

When it looks like the market might “split”...Slide12

MEASURING THE PROPERTY DAMAGE

The adjusters and experts responsibilities;Clearly define the experts assignment;Determine the most critical locations;

Completing the inspections of the loss locations;

Completing an active measurement of the loss;

Its all about the

SCOPE;Slide13

MEASURING THE PROPERTY DAMAGE

When to use a clerk of the works;Identifying issues and obtaining resolution ASAP;Managing and documenting the results;

Review and management of expectations

Partial agreements and partial payments.Slide14

MEASURING THE TIME ELEMENT LOSS

The adjusters and experts responsibilities;Clearly define the experts assignment;Challenges when working with the insured’s claim preparer;

Completing and active measurement of the loss;

Determining Critical Path – Use of Extraordinary expense coverageSlide15

MEASURING THE TIME ELEMENT LOSS

Issues with multi-locations interdependencies and make-up;Managing and documenting the results;Partial agreements and partial payments.Slide16

SPECIAL CIRCUMSTANCES

Captives and captive managers --Who is the adjuster working for?Do you need a separate adjuster if you are a reinsurer?

What are the licensing requirements?

Claim preparation firms—

Who determines if their fees are reasonable?

What to do when they seem to go beyond the scope of a claim preparer?Slide17

SPECIAL CIRCUMSTANCES

Losses in countries outside the U.S.A.Local policies, rules, regulationsPayments in other countries.Slide18

WORKING WITH COUNSEL

In many cases, the insurers will engage counsel to review coverage issues that might occur, there will be more than one firm, and on occasion there are multiple attorneys from a single firm.

In subrogation matters, you can have instances when there are multiple firms because of agreements between carriers and law firms.Slide19

SETTLEMENT STRATEGIES

The routine adjustment when the insured agrees with the adjusters and experts calculations;Isolate the areas of disagreementBifurcate coverage issues from quantum issues

Using the broker’s relationship with the insured

Sometimes brokers try to “divide and concur...”;

When to have a meeting with the insurers and the insuredSlide20

It comes down to...

Plan and ExecuteCommunicate

Managing ExpectationsSlide21

WHAT TO DO WHEN ALL ELSE FAILS