| Author |
 Topic  |
|
MRichardson1952
USA
24 Posts |
 Posted - 01/02/2004 : 23:41:03
|
Has anyone addressed the company's evaluation of their net loss expense with regards to reinsurance contributions? Maybe they feel after all is said and done, they're not eating such a big loss unto themselves, they're sharing it.
|
 |
|
|
CCarr
Canada
1200 Posts |
Posted - 01/03/2004 : 21:49:59
|
Mark, I'm not real clear on your first sentence, re loss expense versus reinsurance contributions. However, aside from the headlines about the property loss dollar cost from any cat, and individual news about a carrier's gross loss from a cat; the net (indemnity) loss to a carrier from a cat is a fraction of what the net losses are for "day to day" claims to a carrier.
The world of reinsurance is deep and fascinating, and in fact, is what allows the carriers as we know them, to operate and function.
Catastrophe reinsurance is the most complex type of reinsurance there is, in my opinion, and is somewhat akin to a futures market.
What does this have to do with the plight of the independent contractor cat adjuster? I do think it is about two years ago that I started saying that "cat adjusting as you know it today, will be dead in three years". There are plenty of trends and signs that this will come to pass.
Somewhere in each carrier's Ivory Tower, after the losses are paid and the accounting done, the catastrophe reinsurance contracts kick in, and make the net to the carrier a small blimp on the spreadsheet. Carriers have explored, developed, and implemented ways in the past years to reduce and minimize the use of the traditional independent contractor cat adjuster, to reduce and minimize the expense to the net cat claim dollar. They are getting more and more successfull at it.
As long as the reinsurers are satisfied with the "method" in which the cat claim indemnity dollars are dispersed, they will honor their contracts and look forward to renewing them.
People can blame the carriers, vendors and / or other cat adjusters for the declining volume of traditional cat claims previously serviced by independent contractors operating as cat adjusters. And, carriers have their own long list as to why they want control over cat claims. But, the use of other methodologies, other than traditional cat claim techniques; will greatly reduce the expense factor to the small net exposures they have from cat claims.
Do a Google search on "Catastrophe reinsurance", and I'm sure you will see a whole industry that is well financed and prepared to offset the exposure of the carrier for this class of loss. |
|
|
|
MRichardson1952
USA
24 Posts |
Posted - 01/04/2004 : 00:39:05
|
CCarr,
While I'm sure we all love your long posts to the most simplest of answers. I've been in this business, in this country longer than any post you can write......
No matter what carrier suffers a loss, they share it with all others.....including the cost to settle said claims.
As such, this whole thread about were we're going is moot..........as long as the insurer's are footing the bill, they will always decide how and who they write the check to.
If we as a collective body of adjusters can never agree on anything, and clearly after reading many of the post herein, how do you truly expect the company's to take you seriously.......give me break.....it's a joke and you know it!
I said it early and it's just as important now, go throuh a senator rather then a company..........read my earlier post.....it wasn't just to fill space, it was meant to provoke thinking.......if possible. |
|
|
|
CCarr
Canada
1200 Posts |
Posted - 01/04/2004 : 10:29:40
|
Mr. Richardson, while I don't really care one way or the other what you may think of my posts, whether they be directed to the simplest of questions or "to the most simplest of answers"; I have to admit I am confused by your measurement of your years in this business versus the length of my posts.
However, while not understanding what put the "humbug" into your attitude, I do see that we agree on the future of the cat claim industry; although from different perspectives. Your view is more harsh, noting your post of 12/27 @ 03.12, ".... I enjoy this site and the people herein, but they are going to be made extinct ...."; while my view is that the traditional cat claim methodologies will become extinct.
In that regard, I don't think salvation of the species will come from any governmental legislation. |
Edited by - CCarr on 01/04/2004 10:32:20 |
|
|
|
JWill
USA
28 Posts |
Posted - 01/04/2004 : 10:59:53
|
As for being pros and regulated. It's simple, get your "CPCU" designation, this should solve all the issues at hand.
As for a regulated "Cat Adjuster" industry, don't we already have that? I think they call them "Vendors".
Most have been doing this long enough to go at it on their own and forsake the vendors. You must've impressed some managers along the way? Two or three happy managers on the varying storms should give you a very pleasant income and peace of mind in your future. |
J. Williams |
|
|
|
Gale
USA
231 Posts |
Posted - 01/05/2004 : 19:07:50
|
I see CAT adjusters being somewhat like farmers. They are not naturally inclined to work together as a group for the good of the group. They will spend money upfront with no guarantee of profit. They will work night and day when the season is right. They know more things about more things than most typical employees. They totally believe in their ability to make things happen.
The one thing the farmer does have that the CAT adjuster does not enjoy is a guarantee that if the number of files or pay split is below a certain threshold then the government will make up the difference.
|
|
|
|
Tom Toll
USA
154 Posts |
Posted - 01/05/2004 : 19:25:11
|
| I have heard and read of the Gloom and Doom theory for many years. It got so bad back in the middle seventies that I almost gave up independent adjusting for a living. I am certainly glad I used my own common sense judgement and stayed with the profession. I have made a decent living for my family and have had a lot of fun and to top it off, have made friends all over the USA and UK. I started my wife Janice on this venture and together we have made friends and had a lot of fun. Its hard work, but very rewarding. If you are in this business for money, leave it. You will never become a millionaire here. Now, if you want to make a decent living, quit the gloom and doom and griping and go to work. Work = income. Funny how that works. We have worked 9 months of 2003 and have enjoyed it. |
|
|
|
Gale
USA
231 Posts |
Posted - 01/05/2004 : 19:35:45
|
| Thanks Tom. When I was writing my post the question popped up in my mind about the cycles thing but I did not have the personal experience to answer the question. Good prospective. How can CAT adjusting come to an end as long as there are events. We are promised more events not less. |
Edited by - Gale on 01/05/2004 19:39:54 |
|
|
|
dhouse
USA
5 Posts |
Posted - 01/05/2004 : 22:59:24
|
Gale, your analogy, although funny, is sadly true. The independent can not count on anyone other than himself/herself to make money/living. The government certainly does not have a handout program designed for adjusters. The only guarantee that an independent has is that there is no guarantee.
|
|
|
|
CCarr
Canada
1200 Posts |
Posted - 01/05/2004 : 23:44:28
|
Gale, I'm not sure if your comment, ".... How can CAT adjusting come to an end as long as there are events ....", was meant to be a retorical question or not. Tall Tommy correctly points out the last major down cycle for the IAs in the mid 70's; predominantly affecting "day to day" IAs. Then the carriers were starting their telephone adjusting units and carried a heavy mindset to drastically reduce independent usage. What survived and thrived then was the specialist IA in a particular line or class of insurance, and the very seasoned and experienced generalist or multiperil adjuster.
Today though, there are so many variables working against the CAT adjuster, that have been discussed at length in many forums. Traditional cat adjusting, as you knew it five years ago, is coming to an end; and will see its end. From this current downward cycle, relative to traditional cat claim methodologies, more particularily affecting the independent contractor cat adjuster this time; there will be survivors similar in nature to that of the last major cycle.
I envision that the current wave of "inspect and estimate" type of field handling will fall into disfavor after due consideration financially and of 'best practices', and will be swept into some form of "desk top' solution technology, to join the growing piece of the pie being dealt with in that manner and other "non-traditional" methods. What will be left will be the more serious homeowner claims and the majority of the commercial claims. Hence, the healthy survival of the specialist trained adjuster and the trained multiperil adjuster; and the demise of yesterday's licenced tar pots and the like.
The premise of what I am trying to suggest, is that it is not the "events" in the 'normal' course of a year that will affect the evolution of the cat adjusting niche, but that it is the current handling practices, and methodologies being used and implemented; that will shape the future of the niche and those working in it. |
Edited by - CCarr on 01/05/2004 23:57:23 |
|
|
|
CatDaddy
USA
310 Posts |
Posted - 01/06/2004 : 09:49:42
|
I wanted to comment on your last post Ice Dog, but I cannot seem to find anything to add. I will simply say "exactly"! Well said.
I read most of the posts on this thread. I found it very interesting. A few really have a good grasp of whats going on in the industry. Others are still playing their "poor me" harps. I think it was Tom Toll who had the best solution for all of you who seem have problems......get out there and work!
Hope everyone had Happy Holidays.
CD
|
Edited by - CatDaddy on 01/06/2004 09:51:58 |
|
|
|
Topic |
|
|
|
CAT CLAIMS CENTRAL
Forum Locked
