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Louis
2 Posts |
 Posted - 04/14/2004 : 08:26:30
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Every year, never fails, as storm season approaches there are always post of gloom and doom. In my opinion, the cat-adjusting business isn’t going to the dogs or claim call centers. Carriers know the padding of a claim by contractors will exceed our fee schedule. They have tried this in the past and it has proven to be unregulated chaos.
So, lets calm down. Next week will bring more adverse weather and I am looking forward to large hail and high winds. It happens every year. Stay positive. The carriers positively cannot do it without us.
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alanporco
USA
112 Posts |
Posted - 04/14/2004 : 09:53:54
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| It is human nature to worry when things aren't going well. A couple of good storms, all the bills caught up and some money in the bank and the postings will lighten up. The biggest problem with this line of work is the isolation (there is no water cooler to gather round to exchange the latest office news, rumors, etc.), this website helps overcome that problem. Hopefully, Mother Nature will start her spring fling soon. |
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gloverb
USA
54 Posts |
Posted - 04/14/2004 : 17:12:03
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| Ahmen! |
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JimF
USA
1014 Posts |
Posted - 04/14/2004 : 23:07:49
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Call me doom and gloom if you must.
After you do that and feel a whole lot better, then pull out some of the old fee schedules from say 10 or 12 years ago (around the time of Hurricane Andrew).
Now look around.
Has the price of gasoline gone up in the past 12 years?
How about the costs of motel rooms?
Are you paying more for automobile insurance, upkeep and purchase?
Have any of your household expenses gone DOWN?
Are you paying less for your mortgage?
Now if you're honest with yourself, you will conclude that everything we have to purchase has gone up?
But what is it that has stayed the same or gone DOWN?
Oops. You did look at those fee schedules from 10-12 years ago now didn't you? They are actually the same OR LESS.
(My apologies to Paul Samuelson in advance. It must be the laws of "Supply and Demand")
Ever notice how in the midst of a hurricane the price of roofing, tree removal, gasoline, generators, ice, housing, food and materials goes UP? Now that is the Law of Supply and Demand in action.
And the only thing which ever goes DOWN in that same hurricane, are our fee schedules. That is not the Law of Supply and Demand but the Law of the Jungle.
Perhaps the better way of saying it is, that is the Law of the Vendors Selling Us Out for small change to increase their market share for big profits.
Why silly me. Thing must be getting better!
Don't miss out on this gravy train. Call Leonards today and tell 'em you want to learn how to mint money.
Sorry about my attitude of doom and gloom. I simply must be having a bad hair day.
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Edited by - JimF on 04/14/2004 23:19:40 |
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LMLinson
USA
22 Posts |
Posted - 04/15/2004 : 05:47:43
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JF:
I wasn't in this business 10 to 12 yrs ago and can't make the comparison. I do know that in my previous endeavors more work is expected for the same amount of money and this is true in most entities now. I have made a decent living since I moved to the wide world of adjusting and make more than I have in previous employment. I'm a far cry away from the 200,000 someone brought up days ago but I was further away from it before. All that being said does anyone have the Indian guide book so I can learn the bad weather dance ?? |
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ChuckDeaton
USA
373 Posts |
Posted - 04/15/2004 : 09:14:04
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| Yesterday we had a parking lot seminar, you know, several successful cat adjusters leaning on a pickup in a motel parking lot, the discussion focused on declining earnings. The overriding theme is that marketing, efficiency and more bang for the buck are the keys to maintaining earnings. |
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Johnd
USA
110 Posts |
Posted - 04/15/2004 : 10:10:56
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Quote:
Ever notice how in the midst of a hurricane the price of roofing, tree removal, gasoline, generators, ice, housing, food and materials goes UP? Now that is the Law of Supply and Demand in action.
And the only thing which ever goes DOWN in that same hurricane, are our fee schedules. That is not the Law of Supply and Demand but the Law of the Jungle.
Actually, I agree with JimF on his entire post except the law of supply and demand.
Jim, I respectfully submit that the reason for the low fee schedules is the glut of adjusters.
Look Back;
Then: Too few adjusters chasing many claims. Vendors doing all they could to attract good adjusters.
Now: To few claims being chased by too many adjusters.
Then: Insurance Companies had a heavy reliance on CAT teams to solve claims problems on weather events.
Now: Insurance Companies doing everything they can think of to reduce the exposure to Independent CAT adjusters. See Dave's WI-FI post in closed forum.
One possible solution would be to change the laws regarding the allocation of expenses as it relates to the adjusting fees. IC's have no incentive to use adjusters. They CAN write off the costs associated with contractors who "adjust" their claims. Think about it. If an adjuster charges $400. to settle a claim or a contractor inflates their estimate $400 and closed the claim, the IC is actually better off with the contractor closed claim.
No disrespect intended, but you who feel that you are better off today than 5 years ago also must certify that they WERE ADJUSTING five years ago. I cannot comprehend a statement saying that I am better off today because I flipped burgers at Burger King before and I'm sure making more money here.
The sooner the adjusting family here finally comes to the realization that MOST Vendors are USING YOU, they do not give a hoot about your future, you see ..... they also have their head in the sand......
Time to wake up folks. You can call it Doom and Gloom. I call it REALITY!
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John Durham
sui cuique fingunt fortunam |
Edited by - Johnd on 04/15/2004 10:33:03 |
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JimF
USA
1014 Posts |
Posted - 04/15/2004 : 10:14:32
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I want to leave a little something for everyone to think about today. I need not remind everyone that April 15 marks a milestone for any year, nor that the 1st Quarter of this year is over.
Unless I am badly mistaken, most cat adjusters have been sitting at home this first quarter due to a lack of storms and storm work.
So when and if a hailstorm comes along sometime in the 2nd quarter, those who didn't work at all in the 1st Quarter, need to amortize their earnings not over the next (2nd quarter) but indeed need to go back and average their earnings over the period for when they did not work.
The net effect if a cat adjuster works the entire 2nd quarter at an average of $700.00 per day, would mean in reality that their average earnings per day are $350.00.
Now all the while most cat adjusters are sitting at home, adjusters like Kile on day rate just keep plugging along and making a nice income for the year, and even our adjuster friends over on staff keep adding to their 401-K's on a monthly basis while continuing an income that allows them to pay their bills and not worry about benefits (which we pay out of pocket or don't have).
There is another side to the financial picture of being a cat adjuster, and since no one ever posts the downsides, I wanted to make sure that newer adjusters don't miss those realities either.
Welcome to the wonderful world of cat adjusting.
Good, bad and indifferent. |
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JimF
USA
1014 Posts |
Posted - 04/15/2004 : 10:20:41
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I should have added to the earlier post, that those cat adjusters who don't find work in the 2nd Quarter or even the 3rd Quarter, but then get called out in the 4th Quarter to handle 50 small losses from a Category 1, 2 or 3 hurricane are still losers for the year (even if they make $$$ per day for several weeks).
There is an old saying that insanity is when you keep on doing what you have always done and expect a different result.
Realistically, every cat adjuster should take their gross earnings from cat adjusting and average those out over 50 weeks for last year, and then come back on here and brag about how much money you made.
You might be both surprised and embarassed. And a little scared. |
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Johnd
USA
110 Posts |
Posted - 04/15/2004 : 10:42:34
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Mr. Luckett Said;
Every year, never fails, as storm season approaches there are always post of gloom and doom. In my opinion, the cat-adjusting business isn’t going to the dogs or claim call centers. Carriers know the padding of a claim by contractors will exceed our fee schedule. They have tried this in the past and it has proven to be unregulated chaos.
So, lets calm down. Next week will bring more adverse weather and I am looking forward to large hail and high winds. It happens every year. Stay positive. The carriers positively cannot do it without us.
Again with all due respect Louis, this attitude is not a solution it is the problem.
AND
"The carriers positively cannot do it without us."
Maybe they already are! Could that be the reason you are not working and depending on that all fulfilling hail storm. Refer to JimF's post again. As for the unregulated chaos, I think we all really know where that resides. I guess if all you have to look forward to is a couple hail storms then you would have to stay positive, how else would you survive. And, oh well, if things don't work out, there is always Burger King. Geee wonder why they did'nt tell us about this at Leonards?
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John Durham
sui cuique fingunt fortunam |
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Gloom and Doom
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