Following the attacks on September 11, 2001, Congress signed the Air Transportation Safety and System Stabilization Act that funded and created the September 11th Victim Compensation Fund. Feinberg became the paymaster of the fund, which was established to provide tax-free money to victims and their families.

So what makes Feinberg capable of managing billions of dollars in funds? How will he work with those affected by the spill to settle claims quickly and appropriately? This is what we learned.

Medina: Mr. Willis said you regarded the BP claim-paying process as "sufficiently efficient" in a meeting between the two of you. Is that still the case?

Feinberg: For the most part. They deserve credit for what they have done, but it is not efficient enough. The process needs to be quicker.

Mr. Willis also said you were critical of BP's payment of business claims. Have measures been initiated to change this?

Yes, we are currently making changes to improve the process while creating mechanisms to put into place so that the payment of claims to businesses is more efficient.

BP agreed to establish a $20 million escrow account. Has this ever occurred before?

Not that I am aware of; this money was actually taken out of the hands of BP and is cosigned by the Federal Government. This has never happened before.

What differences exist between paying oil spill-related claims versus those experienced from the 9/11 fund?

This is very different. In the September 11th catastrophe, we were dealing mainly with the loss of lives and traumatic injuries. Although there were deaths associated with the original explosion, this tragedy is more about the loss of property, loss of income, and the environment. The other major difference is that the structure and process had already been established by BP before I was called in. Usually, I begin from scratch to get the process going.

Who will work for you on this project? Will you hire contract or independent adjusting companies?

Right now, we are going to use the people that BP has contracted with and put into place. If we need more [personnel], then we will simply add to the resources that they are using now. (*Editor's Note: BP is currently using Worley Catastrophe) I am sure that we will add the staff as we need to in the future as we improve the process.

It is widely known that the Obama administration appointed you to this position. Do you think that you are viewed as an independent third party?

Absolutely, I do.

How long do you think this process will take?

I would say three years.

Do you think that it is a real possibility that BP will not be able to pay all of the claims, or that it could essentially run out of money?

I hope not! That would be a real shame for the people. In order for this process to work, BP must thrive and remain strong. [Therefore], it would be a tragedy for BP to fail. The [company] must succeed in order to make sure that everyone gets paid.

How closely will you continue to work with Darryl Willis and BP?

We need to be able to work together. I will continue to work closely with Darryl Willis. He has been good for BP and has worked hard to get the process together and running. I plan to continue to work with him to make the process more efficient.

Thus far, what has been the most difficult aspect of assuming this role?

Making the people believe in the process. If the people would believe in the process that has been established, then their claims will be paid. If the people do not believe in the process, [then] it will fail. BP is going to pay their claims; I will make certain of that. I am going to see that we make the process run efficiently; it will work. The people have to also believe that it will work.

This concluded our conversation with Mr. Feinberg, as he was leaving to catch a flight to the spill area, where he planned to conduct a series of town hall-type meetings to address peoples' concerns. Feinberg underscores the most critical issues associated with any type of catastrophic claim event. Some points to keep in mind are listed below:

• The claim processes themselves and the efficiency of those processes.
• The management and leadership of the processes.
• The company paying the claims must continue to succeed to continue paying claims.
• The importance of the expedient payment of claims.
• Those suffering damages must fully understand the process.

Perhaps the most important takeaway for claim professionals and the insurance industry as a whole is this: people must believe in the process. Companies need to take appropriate measures to ensure that their customers and claimants feel as though they are in good hands and that the company is on their side. Affected parties must believe that the adjuster wants to handle their claims as efficiently and as quickly as possible. This is what will make the claim-handling process work successfully.