How is COVID-19 affecting insurance claims?

The latest Insurance & Law Today podcast looks at the impact of the coronavirus and hurricanes on the claims process.

Like many businesses affected by the virus, insurance adjusters are feeling the impact as well, but not in the way you might think. (Photo: ToKa74/Shutterstock)

Six months into the coronavirus pandemic, the insurance industry continues to adjust to changes and new ways of handling insurance claims. In the latest Insurance & Law Today podcast, Wright, Constable & Skeen attorney Marie Ignozzi spoke with Peter Crosa, the CEO of Peter J. Crosa & Associates, about how the coronavirus is or is not affecting claims, as well as how adjusters are handling an extremely active hurricane season.

“The coronavirus has changed how businesses operate, but not exactly how you might expect,” shared Crosa. “There is very little happening in the field right now.”

He went on to explain that there has been a significant drop in claims activity for the last several months. “Commerce is dead or has been since the beginning of the year. It’s been a terrible year for people who depend on claims volume to make their living,” he explained, citing a drop of anywhere from 50-80% in terms of the number of auto accident claims. For independent adjusters, 2020 has been a particularly difficult year. “We’re seeing two claims a month at a time that you would have 50-100 claims.” Part of the issue is that property owners are reluctant to meet with adjusters except for under very stringent circumstances.

Handling hurricane claims

With an overly active hurricane season already well underway, the concerns about COVID-19 seem to fade in the reality of a demolished home or business.

“There were over 5,000 claims in Iowa,” said Crosa, “it’s such a desperate emergency situation and they are looking for adjusters. People who have had their roofs blown off are not worried about COVID. We have these claims and they have to be resolved. People have a need so you’re going to handle that claim and no one is going to prevent you from being there.”

He emphasized that insurers and adjusters are taking steps to keep everyone safe. “We send out a COVID letter to the property owner before we get there explaining that we are COVID-free, and we will wear masks and gloves when we come to visit your property. We then ask that they send us a letter saying the same thing.”

To hear more of the conversation, listen here.

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