Help wanted: Desk adjusters needed

If the industry has learned anything from the last two years with the record 18 storms and hurricanes that have made landfall, it was that desk adjusters are in high demand. Scientists say this record-setting stretch of storms is not over and may increase due to global climate change.

Our industry is having issues meeting demands with qualified desk adjusters and last year in many cases, had to accept what was available just to meet numerous requests. We also saw that some carriers were hiring desk adjusters a few months before hurricane season to help ensure that they would have more qualified adjusters to handle their anticipated claims volume.

Increased reliance on AI

The industry is keenly aware of how companies have had to quickly build artificial intelligence (AI) alternatives to help assist current staffing and help compensate for the lack of qualified adjusters. In reviewing several independent adjuster websites, many firms are advertising classes for desk adjusters and desk estimators. Carriers and IA firms have also continued to review their fees to meet the desk adjuster demands.

What is causing the recent surge in requests for many more desk adjusters has been the pandemic, AI and the fact that carriers just can’t find enough qualified adjusters to cover their claims volume during storm events.

The pandemic caused the industry to do things differently and created the need to do more with less and over the desk. Claims organizations worked outside of their comfort zone to get claims closed. Instead of sending an adjuster into the field, many inspections were handled virtually. Insureds were asked to take photos of damages through phone applications, virtually eliminating any in-person contact. One of the reasons the industry responded well was because of the availability of estimating programs to assist in the process. Also, weather analytics, drones and new roof inspection technology increased the file quality and allowed faster claims closure.

New technology means new demands, which in this case means more adjusters behind a computer. Training with new processes and applications will also create a new learning curve for the desk adjuster. With the advent of new insurtech applications, innovations and automation, demands for knowledge have increased the need for more remote adjusters.

Recruiting the next generation

The insurance industry is not attracting millennials or younger workers. As retirement approaches for a large group of older employees, the insurance industry is finding itself with a talent gap. According to the U.S. Bureau of Labor Statistics, nearly 400,000 employees will be retiring from the industry in the next few years.

According to several human resources business employment surveys of the employees in the insurance industry workforce, 29% are of age 55 or older. This statistic is higher than most other industries. When a carrier calls for desk adjuster resources today, it is not typically for just two or three people as in the past. The request today is commonly for increased to 10-15 or 25-50 people.

All these recent changes have increased the need for staffing and better desk adjusting opportunities. The desk adjusters can do more remotely with automation, and technology and innovations can help attract the younger generation.

Desk adjusting is at the heart of any claims organization.

Setting expectations

Today’s desk adjusters must have excellent oral, written and interpersonal communication skills and policy knowledge. They must be detail-oriented, understand the cause of loss, be able to evaluate structural issues, have some supervision capabilities, understand personal property and loss of use and be knowledgeable about property estimate review best practices. Being technology-savvy means they have proficient computer skills to function in a company’s CMS platform, be able to use Microsoft Office Products and estimating programs for evaluating and determining scope and repair costs, as well as possess a professional and pleasant phone demeanor, and have good time and workflow management skills.

And if that’s not enough, desk adjusters should also possess the ability to exceed carrier expectations, including all service level agreements.

The industry responds

Carriers are looking for outsourcing opportunities through staffing agencies and independent adjusting firms. Many of the training opportunities offered by the independent adjusting firms focus on increasing adjusters’ capabilities and product knowledge. Carriers are looking for different staffing strategies because onboarding and training costs are rising.

Automation is providing the tools to close more claims faster and is helping to assist with managing companies’ claims volume. Millennials will join organizations because of the increased benefits of technology. They are used to being “connected” virtually, and social media will also increase their awareness of our industry and help with recruiting talent.

One way to address the staffing shortage involves developing recruiting and retention policies for a maturing workforce. A recent study found having older workers promotes professionalism and a strong work ethic within an organization.

Independent adjusting firms are focusing on staffing, educating the industry, and hiring desk supervisors, examiners and estimators. Equally important is teaching the adjusters about file handling, correct processes and the use of digital estimating tools to help close a file. The use of estimating programs, weather analytics and roof inspection technologies have increased file quality and expedited claims closure.

A good industry colleague, Tony Triolo, spoke at an Elevate Conference two years ago about the direction of our industry. He said, “There will always be a need for adjusters but in a different capacity.” That time has arrived.

With catastrophes increasing and an aging workforce growing across the insurance industry, the increased need for desk adjusters will continue for many years. Long-term outsourcing is here to stay.

Henry W. Maley is senior vice president of sales for Colonial Claims. He is responsible for leading sales and marketing for their P&C division. With over 40 years of P&C experience, Maley has held numerous leadership roles in the insurance industry. Contact him at hmaley@colonialclaims.com.

Related:

• How does the insurance industry view touchless claims?
• ‘Out Front Ideas’: 20 issues to watch in the coming year
• 3 key 2022 trends for AI and P&C insurance

To learn more about claims-related topics like this, join us at the America’s Claims Executive Leadership Forum, March 27-29, 2022 in New Orleans, La.