Woks and Chopsticks

“Work smarter, not harder,” is a mantra for successful professionals, and that often means effectively using new and existing technologies. While there have been some gains in a few of these categories for independents, many company claim professionals are apparently being forced to do more with less.

For instance, laptop computers have traditionally been supplied to insurer claim staff at a much higher rate than independents. In fact, last year's results showed that 65 percent of company claim professionals had the ability to take their work on the road with them, compared with just 46 percent of independents. This year, however, just 58 percent of company claim professionals can lay claim to having a mobile office, an 11 percent decrease. More surprising are the gains made by independents. While last year's respondents claimed that 46 percent utilized laptops, this year's survey-takers indicate that 56 percent are using them, nearly a 22 percent increase. That means the two groups are almost equal in terms of laptop usage for the first time in recent years.

This year's survey results also show that company claim staffs aren't receiving cell phones from their companies with the frequency they used to enjoy. In fact, less than half are now getting them, down 25 percent from just last year. While this big of a drop might be chalked up as a one-year blip, a look at past years' percentages indicate that this is a continuing trend. But it's one that is not being reflected in the independent ranks. These professionals continued to report company-provided cell phones in record numbers, with 68 percent of respondents affirming its presence in their pockets, more or less free of charge.

Company claim staffs also aren't getting those sought-after company cars at the rates that have been reported in the past. While nearly one in two had their wheels reimbursed in 2006, this year saw that number plunge to just one in four. It's a significant drop, considering previous years' results reliably fell near the 50-percent mark. Meanwhile, independent claim personnel continued to contradict company claim statistics, with 46 percent reporting company cars. That's an increase of 53 percent from last year. And when it comes to getting around town and from claim to claim, one in four independent claim professionals utilized company-provided global positioning systems/navigation units. Company claim staff barely registered on this question, with only seven percent responding that navigation was a cost picked up by their companies.

Where's the Beef?

But there were far greater worries on the minds of claim professionals than the tools of their trade. Given a soapbox, many stood up and voiced their complaints. By far the most prevalent concern this year centered on the relationship between workload and salary — a complaint also featured prominently in the previous 16 iterations of this survey.

“While salary is always important, unreasonable workloads and the amount of hours needed to accomplish my job have really become objectionable,” said one insurer claim manager located in the Southwest. Even though he says his hours have declined over the last 12 months, he still works more than 60 hours a week for his $90,000 salary.

“I believe that compensation in general for the profession is not in keeping with the training and the responsibilities that claim personnel have in relation to other industries,” said a company claim manager in the Midwest making $104,000 annually. “It is getting harder to attract young professionals to our industry. The workload expectations and demands of the public are turning younger people away from claims and, with the aging of the current claim personnel, this is a crisis waiting to happen.” She said she works 45 hours a week, which is about the same she averaged last year.

This concern for the future of the profession wasn't just mentioned by insurance company claim professionals. Independents also expressed awareness of the problem. Some were blunter than others.

“For the type of work and the pressures involved — especially running my own business — we are not compensated like other industries. It seems like everyone we deal with wants instantaneous gratification and results no matter what kind of workload we have,” said an independent owner from the Northeast, who reported his salary at $95,000. “Fortunately, I have a good client base and most of my customers understand the time constraints on our business. Unfortunately, the majority of the industry has not been very supportive and the larger carriers are moving toward in-house claim handling. I have seen a drop in claims from some clients who now outsource their business to restoration companies and contractors. There does not appear to be anyone new getting into our side of the business due to the workload, pressures, and lower salaries for those individuals.”

“I work far more hours than I get paid for,” groused an independent adjuster who is located in the Northwest and makes $56,000 while working 70 hours a week. “It is expected and demanded as a requirement of the job. The company standards cannot be met with the workload demanded by the company.”

Many respondents also complained about staffing levels, which they deemed too low to handle the high volume of work.

“Workloads have become much greater over the last 10 years,” said one insurer claim manager making $89,000 while working 50 or more hours a week. “We are now staffed at the minimum level we need to get the job done. If someone is on vacation or sick, we fall behind.”

“Our claim loads have increased because management does not replace those who leave, and there are requirements for more documentation, more reports for files, and more frequent follow ups,” lamented a company claim adjuster making $53,000. “It used to be that during the busy times, you were able work the overtime and then regain your sanity and catch up during the slower times. Now it is just continuously busy and stressful. There is no time to catch up and you have to work hard just to stay above water.” She reports that her hours have increased substantially this year, working as many as 60 hours a week.

There were also a few stunning examples of disconnect between those handling claims on the front lines and the vice presidents above them, who might be accused of spending too much time in the ivory towers.

“We are expecting more and more of our claim staff, but we are offering the right placement of tasks and IT methodologies that allow them to focus on their jobs,” explained an insurance company vice president from the East Coast, who reported his salary at $125,000.

“Upper management makes too much of the fact that we have technology and believes that makes us more efficient,” corrected a company claim manager from the same area of the country, who makes $89,000 while working at least 50 hours a week. “While in many ways it does, it does not add time to make or return calls, review records and estimates, or sufficiently answer a claimant's questions to allow for the increased expectations in daily assignments and inventory handling.”

“Our company has continued to cut the number of employees in the claim department despite our growth,” complained a Midwest claim manager making $92,000 and working 50 hours a week. “This has led to a huge deterioration in claim handling and service to our insureds. However, as profits have been up the last few years, our top management thinks they are doing a great job. It appears our competition is likely doing the same thing.”

Finally, a few survey takers reinforced the notion that the profession may be facing a talent shortage in the future, which is likely to cause future customer service issues. This also is reflected in the age statistics we collected, which show very few people under the age of 35 (see sidebar, Look Who's Talking, at the end of the article).

“I would not recommend any of my children get into this business,” said an independent owner from the West Coast making $100,000. “If I did not have self-insured clients, we would be out of business. What is irritating is that the insurance companies, who have eliminated the independent adjuster and appraiser, expect immediate loyalty when their staff is too busy and they are forced to give outside assignments.”

Sunny Side Up

While it might be easy to focus on the negative aspects of a job, it's clear that not all claim professionals view the industry with the same sort of cynicism. Despite the gloom and doom contained in the majority of this year's survey responses, many felt their jobs offered them an adequate salary and more.

“I feel my salary is a little lacking, but they more than make up for it in the work environment provided and overall benefits,” said a claim examiner making $43,000 in the South. She reported her weekly hours are holding steady at 40.

“I used to work for a larger staff company, working 50-60 hours a week under extreme stress, for what I considered an above-average salary,” said another claim manager who declined to include his location or exact salary. “Several years ago, I made a career decision to change companies for less salary, but worked fewer hours and had a less-stressful work environment. It was the best decision I have ever made. I have also determined that with better benefits, the overall compensation is not that much less. Deciding to sacrifice a little money for a much better quality of life has been a refreshing change.”

“My job is very satisfying,” agreed another claim representative on the East Coast who is making $20,000 while working just 30 hours a week. “My company is very flexible and lets me work around my child's schedule. My hourly rate is probably a little low, but I can't beat the flexibility!”

Beyond tangible benefits, a few shared their feelings on how their jobs impact their lives and the lives of those around them.

“I must admit that even after 37 years in the business, I still enjoy the daily thrill of sharing my knowledge with both new and veteran claim associates,” said a claim manager from the South, who makes $75,000 and works 38 hours a week. “There are many gray areas in casualty claims. The best way to balance our service to our customers and our company is through open lines of communication.”

“Insurance and the associated by-products (underwriter, brokerage, risk management, loss prevention, claim adjusting) is a good way to make a living while helping others,” said a vice president from the West Coast, making $100,000 a year.

Finally, one claim manager summed up what others failed to express as eloquently. If claim professionals feel valued and are recognized in the workplace, salary might not always be the most important thing.

“If salary was the only item I was looking at, I would be looking for another job because I know it is well below my peers,” she said, while reporting her weekly hours in the 40+ range. “One perk I can say I do have is job satisfaction. This may not help pay the bills, but it goes a long way towards making it easier to come into work each day. I work for a company in which the vice president of claims knows me by name and invites me to meetings, allowing the supervisory ranks to have an input in the decisions made by those higher up. At our company, we are allowed to have a voice and be a real part of the decision-making process. This is great motivator and really helps one look at the job as more than working claims. I know that with changes in compensation we now have hourly employees with overtime who make more money than I do, but I guess I refuse to place money above job satisfaction. So I guess the new vehicle will have to wait, but at least I can come to work and feel like I am contributing and making a difference.”

Salary Survey Methodology

A random sampling of 1,000 Claims subscribers was sent our salary survey in Aug. 2007, and a link to the survey also was published on claimsmag.com. We received 288 usable responses, a response rate of almost four percent. Insurer claim staffs were heavily represented, with a 62 percent response rate (180 respondents). Independent claim staff responded at a rate of 38 percent (108 respondents).