Forums

It seems that the "fee bill"  became to insurance what the "Happy Meal" became to burger lovers. The large IA firms who hired and maintained large staffs of varying quality adjusters needed to keep them busy and the fee bill fit this need to a T. Salaried employees became beneficial and the more skilled folks earned commissions on top of base. Competition amongst the big boys is ferocious and thus fee undercutting was born. Thirty four years ago when I started a good general adjuster billed $65.00 an hour T&E. Today a good G.A. gets about $105.00. Didn't really keep up with inflation did it. I think we work for rates that aren't really great because instead of standing united as professionals the grass is being cut out from underneath our feet.

Marc, you are absolutely right. We have too many lawnmowers and not enough fertilizer. Justice is and justice does!

Marc:

Sure would like to know where you started, because when I started in 1978, the going rate at C & C was $16 per hour and the GAs were around $25.   When I left to go to a local independent, the hourly rate was $12 per hour.  The independent adjuster rates were almost the same as body shop rates until late 1980s when we got some separation.     And now the going rate for all GAs I know is $150 and up. 

Finally I have one big problem with the designation of GA. There is no industry standard for it.  It is basically a term of endearment for those who have persevered in the business and for many who just self designate.  (Please do not take offense as none intended)

Have you seen this site
http://www.ngadjust.com/home  

I have not applied with them (yet) and I do not use the title although the IA that I was working for designated it to me about 5 years ago... kinda for the same reasons you cite, it is not the same as AIC, CPCU in terms of clearly defined achievement.

GAB always had two GA's in the Houston office. Both were well educated and trained property sr. adjusters. Crawford may have a casualty and a property adjuster. The principals of the IA firms were managers or GA's before they started their own shop. I was designated a GA by Steege Kingston and Assoc. in 1991 and an EGA after Andrew. In the IA world either designation seems to mean you have worked complex claims/losses with attorney involvement up into the millions for several years past your 15-20 years of full time working as Sr. Adjuster.

Today many Sr. Adjusters are hired by carriers as GA's. State Farm probable promotes from within

When I started with Farm Bureau in 1960, we earned $325.00 per month,a company car, and road expenses. When I went independent, the pay was T&E at $22.50 per hour. Through the years the companies migrated to a fee schedule, which was relatively low. We still made a decent living. When I started my own company, it was back to T&E on aviation claims and property. If your on T&E you must enter your time for literally everything you do on  a file ie, phone conversations, etc. I prefer a fee schedule on commercial large losses. You can devote your time to concluding the losses without having to constantly enter times. The insurance industry seems to be in a constant time are a changin mode and always have been. Now they want you to enter times even on scheduled pay, which defeats the reason for schedules.

Great point Tom. I still think if you load each simple roof claim into your computer and do what you have to do to close the file it will average about 3.5 hours and 60% of a $400. bill will average the adjuster about $50.00 per hour after expenses. Just about what a good appliance repairman who comes to your house to repair appliances.

Ray, no one has ever told me that I would become independently wealthy being an insurance adjuster, contrary to some of the outlandish claims made by some adjusters. We make a comfortable living and stay somewhat busy, just like you. I have always enjoyed the work and that is why I stayed with it for so many years.

If you are doing cat, Time and Expense is not the way   been there done that, look at your watch there is only 8 hrs to work in a day   Schedule billing is the only profitable approach. T&E is great if you are a local IA and have time to work, and work, and work, the same claim.  I personally hate to get to a point where you have to apply T & E on a cat claim. When that happens you will either lose money or start padding the time and the latter might reach up and bite your butt by an in house examiner.  Just give me a good schedule and 100 claims and I do believe I would close them quicker and more economically than the guy doing those same 100 on T & E.

Very well said, Barry. I agree with you implicitly.

Steve;

I have no doubt Barry was thinking that there are ony 24 hours in a day and that you must sleep and eat so there are only 14-16 workable hours a day and a body can't take that for prolonged lengths of time.  Hence you cannot bill 40 hours per day as some did with NFIP in the early 80's.    His post even says something along those lines.

I have to agree...and you better remember these are bean counters.  Even if you are out there & truthfully busting your butt 16-18 hours for a 3-5 day straight period, and billing T&E counting the mileage...when they run your T&E billings thru their little programs you better be able to account for it and have your dates right.  Especially if you also have other separate straight fee scheduled losses that you close on same day.  Don't discount the factor of the "bean counter computer", or the observant file reviewer.   We all understand the nature of closing files on non-travel days... just be honest & don't make the earth spin slower than it really does.   There's only been one man who could do that.  He wore a cape and was fictional. (Then again, some of us like to impersonate him from time to time!!  

Mike,

I have it on good authority that the guy you refer to will be at the San Diego Comicon this weekend.  I might see him flying around our fair city.