General Insurance Article - Loss complexity leads to innovation in loss adjusting

 Loss adjusters are often called to work in hazardous working environments. The report highlights a US example where adjusters working on a contaminated site were sent real-time mobile phone text alerts if air quality levels dropped below agreed safety levels. This enabled the adjusters to continue working as long as contamination levels remained acceptable, greatly reducing the time and costs incurred.

 Increasingly sophisticated cyber attacks have created a demand for a more innovate response from loss adjusters. According to the Department for Business, Innovation and Skills[1], 90% of large firms and 74% of small businesses have experienced a data breach or cyber-attack. The Cunningham Lindsey report highlights an attack similar to the recent WannaCry ransomware event which saw the adjusters’ own cyber experts unlocking the insured’s encrypted data and re-instating the firms’ IT systems. A response to a similar extortion attempt saw their cyber experts not only counter the threat but also identify the member staff involved in the attack.

 The report also illustrates the use of aerial photography and thermal imagery to more accurately assess levels of damage, for example the age of trees affected by forest fires. Being able to accurately assess the age of fire damaged trees enabled adjusters to calculate reforestation costs, which depend on the time taken for new trees to reach the age of the burnt ones.

 David Pigot, Global Head of Major & Complex Loss at Cunningham Lindsey said: “It’s clear from our report that the role of loss adjuster is changing as the nature and complexity of insured losses facing the insurance industry evolves. We are seeing more innovative approaches emerge, reflecting the changing nature of the claims being managed.

 “Ultimately, we exist to help insurers’ clients get their lives and businesses back on track. As their needs change, so must the way we respond to achieve this aim.”