I was recently involved in a strategic analysis of the insurance industry. As part of that analysis it was necessary to understand the competitive environment of independent claims adjusters and, particularly, the technology that is currently being used and that is available. The analysis is below:

Independent Insurance Claims Adjusters

Associations
There are several associations and fee-based organizations that provide services to independent insurance claims adjusters. Most notably the National Association of Independent Adjusters and the fee-based services from E-claim.com. A more comprehensive list is provided in Table A below. There are many smaller regional associations that represent independent adjusters but do not seem to provide services like advertising and claims-assignment to members. The fact that these regional organizations exist indicates that independent adjusters are organized and are viable meaning they are making money without being employed by the larger adjuster service companies or an insurance company. These adjuster organizations large and small, regional or national give even a small independent adjuster the necessary exposure in the industry. The independent adjuster can advertise, keep up with industry trends and find additional resources to do their job through these organizations.

Technology
The services currently available to the independent adjusters allow insurance companies and others that need claims services to assign claims to independent adjusters on-line and allow the adjuster to receive the information in a short period of time. I can’t determine to what extent the client organizations are currently making use of technology to get information to the adjuster, however, the ability to use the internet to find a suitable adjuster, contact the adjuster and send at least minimum information to the adjuster on-line is allowing many independent adjusters to do business and compete with large adjusting firms. It is a small step from there for the client to e-mail, e-fax or otherwise electronically transfer additional information to the adjuster. When the adjuster has completed the claim his work can be sent back to the client over the same medium.

With a simple website and a minimal amount of software and hardware an independent adjuster could easily provide the portal for a client to upload information about the claim as well as download the finished claim material from the adjuster. This information could include legal or industry forms, digital copies of contracts, digital signatures and even large digital photographs. E-claim.com provides these website services, in fact, any competent website designer could easily design and host this kind of website for a few hundred dollars using open source software. This kind of minimal web presence could allow a client and adjuster to communicate and share information real-time.

Barriers to entry
There are few barriers to entry into the insurance adjuster field. An applicant has to be 18 years old, reside in the state, be trustworthy, show that they have “experience, specialized education, or training of sufficient duration and extent regarding the handling of loss claims” and pass a test (Texas Constitution and Statutes, Insurance Code, 2009, Sec. 4101.053). There are several education providers that teach courses that meet the education and training requirements and will teach the applicant what they need to know to pass the test. There is a $65.00 fee from the state to take the test and a $50.00 fee for the license.

Specialization
Information from the Insurance Information Institute says that “many commercial insurers concentrate on certain types of businesses or insurance coverages or both. They may target firms in the energy or transportation fields, for example, building contractors or financial services institutions. They may be specialists in directors and officers liability insurance, medical malpractice liability insurance, surety bonds, crop insurance or workers compensation, sometimes covering other incidental risks as well. It is easy to see how an independent adjuster with this kind of specialized knowledge could carve out a niche market.

The American Society of Professional Estimators educates and certifies construction estimators and even provides an online list of estimators by region. These construction estimators offer consulting services that include cost analysis, participation in dispute resolution, expert witness testimony and claims negotiation. As described above, an estimator with this kind of specialized knowledge could easily comply with the requirements to become a licensed insurance claims adjuster in Texas. Likewise, experts in other fields such as aircraft engineers, commodities traders, accountants, civil engineers, environmental engineers, architects, jewelers and home builders could use their specific knowledge to analyze insurance claims.

Specialization may explain why the small independent adjusters (Mom and Pops) are succeeding because there may be few individuals who have specialized knowledge of a certain risk or insured technology/industry. These specialized individuals may have worked years to get this specialized knowledge and need only take a class to get licensed to become an adjustor. On the other hand, an adjustor can’t just take a class to get the same specialized knowledge.

Summary
In summary, if you combine the resources that are available to the independent adjuster through the adjuster organizations with cheap, off-the-shelf communications technology (cell-phone, laptop, PDA, digital camera, web portal), cost effective internet-based advertising and low barriers to entry; an independent adjuster has everything he/she needs to do business.

Table A

Adjuster Associations
National Association of Independent Insurance Adjusters [naiia.com]
– Offers claims-assignment services to its members
California Association of Independent Insurance Adjusters [caiia.org]
– Provides a member search for members in cities and area codes.
New York Association of Independent Adjusters [nyadjusters.org]
– Provides a member search for members by region.
American Association of independent Adjusters
– Members include some apparently large companies including:
GAB Robins
Gallagher Bassett
and Sedgwick CMS
– Also represents CL and the NAIIA as “Associate” members.
– Seems to be a PAC for the industry.
American Society of Professional Estimators [aspenational.org]
– this organization represents construction estimators.
– It appears that these estimators also hire out their services to
estimate losses for insurance companies.

Fee-based Adjuster Services
E-claim.com [e-claim.com/claims-portal.com]
– Offers claims-assignment services to its members.
Casualty Adjuster’s Guide [cagworld.com]
– Provides adjuster search feature by region and claim category.
Claims [claimsmag.com]
– Provides advertising for claims adjuster.

19,795 Comments

Other Links to this Post

  1. small leather wallet women — January 20, 2022 @ 8:50 pm

  2. ego string trimmer replacement head — January 20, 2022 @ 9:38 pm

  3. ebay women's clothing — January 20, 2022 @ 9:48 pm

  4. islamic women's clothing — January 20, 2022 @ 10:31 pm

  5. ego 15 string trimmer — January 21, 2022 @ 12:00 am

  6. leather laptop tote — January 21, 2022 @ 1:24 am

  7. lands end women's clothing — January 21, 2022 @ 1:49 am

  8. 1920s women's clothing — January 21, 2022 @ 2:45 am

  9. women's clothing wholesale suppliers — January 21, 2022 @ 5:09 am

  10. interruttore wifi tapparelle — January 21, 2022 @ 6:14 am

  11. Click In this article — January 21, 2022 @ 6:40 am

  12. swiss replica watches — January 21, 2022 @ 10:27 am

  13. crossbody bags cheap — January 21, 2022 @ 11:20 am

  14. generac 2800 psi pressure washer — January 21, 2022 @ 11:38 am

  15. swiss army watches price — January 21, 2022 @ 11:51 am

  16. videogiochi giapponesi — January 21, 2022 @ 1:19 pm

  17. tum.Findmarkbook.Com — January 21, 2022 @ 1:20 pm

  18. videogiochi spiderman — January 21, 2022 @ 2:19 pm

  19. console videogiochi portatile — January 21, 2022 @ 3:43 pm

  20. videogiochi retro — January 21, 2022 @ 4:08 pm

  21. Liverwurst Ingredients — January 21, 2022 @ 4:31 pm

  22. daftar situs slot online — January 21, 2022 @ 4:54 pm

  23. kate spade leather satchel — January 21, 2022 @ 5:29 pm

  24. makita battery angle grinder — January 21, 2022 @ 6:33 pm

  25. beef liverwurst — January 21, 2022 @ 6:51 pm

  26. makita angle grinder attachments — January 21, 2022 @ 7:58 pm

  27. fossil handbags — January 21, 2022 @ 8:17 pm

  28. makita 4 1/2 angle grinder — January 21, 2022 @ 10:16 pm

  29. coach women's crossbody bags — January 21, 2022 @ 11:30 pm

  30. Star Wars Videogiochi — January 22, 2022 @ 12:08 am

  31. videogiochi bambini — January 22, 2022 @ 12:38 am

  32. handbags for women — January 22, 2022 @ 12:52 am

  33. crossbody bag with handle — January 22, 2022 @ 1:19 am

  34. visit this website — January 22, 2022 @ 2:26 am

  35. setcialimir.com — January 22, 2022 @ 5:07 am

  36. digital caliper tool — January 22, 2022 @ 5:57 am

  37. digital fractional caliper — January 22, 2022 @ 6:19 am

  38. setcialito.com — January 22, 2022 @ 6:40 am

  39. exclcialisite.com — January 22, 2022 @ 6:49 am

  40. mobviagrweb.com — January 22, 2022 @ 7:39 am

  41. oneviagrweb.com — January 22, 2022 @ 8:03 am

  42. enco benchtop milling machine — January 22, 2022 @ 8:52 am

  43. digital dial caliper — January 22, 2022 @ 8:55 am

  44. reading a digital caliper — January 22, 2022 @ 9:17 am

  45. used benchtop milling machine for sale — January 22, 2022 @ 9:33 am

RSS feed for comments on this post. TrackBack URI

Leave a comment

You must be logged in to post a comment.