Old habits are hard to break, particularly in the insurance industry. But when old habits are negatively affecting the bottom line, many companies welcome change. Current claim and underwriting practices, particularly those involving the handling of commercial salvage, are rooted in years of tradition.
Historically, companies deal with claims using the quickest and easiest means at their disposal. These practices often consist of destroying the salvage or negotiating to leave it with the insured. However, these methods usually do not result in the most beneficial settlement for the insured or the insurer. Companies do not fully maximize their salvage recovery returns, and the insureds are faced with increased loss ratios and higher insurance premiums. By implementing alternative solutions for salvage disposition, particularly online auctions, both insureds and insurers can realize significantly higher returns.
Current State of Salvage
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