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Typical Phases of Claim Pmt First 3 Years of an Adjuster's Career

CADO Forum Archive

Just a little insight to all new adjusters on what I have witnessed to be the progression of practice among new catastrophe adjusters in their first three years of claims work.


Stage # 1:  Demonstrated during in the first twelve months of career

Mindset: “Conservative” Not comfortable with allowing for large dollar settlement. Willing to ignore scope of damage in order to keep settlement amounts low to avoid perceived internal conflict with employer.
Consequences:  “Poor Production & Quality of Work”  30-75% of all claims returned by Team Manager to rework, 5-10% (which accounts for all random claims pulled for review) of closed claims returned by Reinspector to correct omissions, All estimates will require major reconciliation effort before any repair professional can begin project.
Stage # 2:  Demonstrated from twelve – twenty-four months of career
Mindset: “Liberal” Adjuster overcompensates for mistakes made during first twelve months of career and is no longer concerned with extending large dollar settlement. Has come to believe that an over scoped and overpaid claims translates into stronger production with less problems with customers, repair professionals and claim's management.
Consequences: “Improved Production & Poor Quality of Work” 25– 30% of all claims are returned by Team Manager w/o payment authorization and will have to be reworked. 5-10% (which accounts for all random claims pulled for review) still being returned by Re-inspector to point out overpayment issues. Adjuster will be required to acknowledge mistakes and in some cases will have to contact Customer and arrange return of draft .
Stage # 3:  Demonstrated at twenty-four months and beyond
Mindset: “Accuracy” Adjuster’s focus is on scope w/o concern of dollar settlement amount. This person has learned the problems with speculation and the value of fact. An understanding that accurate scope as it applies to the insuring agreement is the best way to determine appropriate claim settlement.  


Consequences: “Strong Production & Quality of Work” Trusted by Team Manager who may even raise adjuster’s draft authority. Higher draft authority goes hand in hand with less file scrutiny, greater confidence, unimaginable leaps in production……………

 Hope this helps to expedite your progression through the phases.

 KEVIN KRAMER  /  Owner Operator K-Squared Cat Training Svs.

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