Message From the President (June 01, 2008)

The “Help Wanted” sign has officially been posted on the claims side of the Canadian property and casualty insurance industry. Newspapers, magazines and cocktail conversations are filled with stories relating to the fact there are not enough people coming into the professional work force in Canada to replace those who are leaving. While this talent deficit is affecting all professions, from nursing to accounting to property and casualty insurance, the problem is perhaps no more prevalent than in the profession of loss adjusting.

Many years of expense reduction have left insurer claim departments with personnel who are closer to the end of their career than the beginning. These cutbacks and expense restrictions have trickled down to the ranks of the independent adjuster; there have not been sufficient margins in adjuster rates over the last fifteen years to facilitate the development of younger people as loss adjusters.

We are quickly –much faster than predicted — approaching the point where the demand for independent adjusting service is going to exceed supply and that is going to leave some insurers in a very difficult position. In this situation it would be easy for the experienced independent adjuster to feel comfortable about today and not be concerned about tomorrow. Such an attitude has never been the nature of independent loss adjusters and we are not about to start now.

We need to work closely with the p&c insurers to cooperatively encourage, educate and train new adjusters entering the field. We need to provide cub adjusters with the types of losses on which they can train; we need to receive fees that allow for proper remuneration of these new adjusters and the people who are training them, and we have to do this together.

New Brunswick-based McCain Foods is in the French fry business. When McCain needs potatoes, and they need them every day, they do not randomly call up potato farmers and tell them to deliver a certain quantity at a certain time and at a certain dictated price. Rather, McCain works with its potato growers to ensure the growers are profitable, their crop sustainable, they are producing the best possible potatoes and to develop new and better ways to grow potatoes. We need that same approach in our relationship with insurers in Canada. We can no longer be expected to stand by with the truck fully loaded waiting for the call that may or may not come or perhaps worse, a huge order that cannot be filled. Just as McCain needs potatoes every day, insurers need the service of independent loss adjusters every day. It is time for a new dialogue between insurers and independent adjusters to co-operatively develop programs to ensure independent adjusting services are available for insurers, every day.

Over the last year, CIAA has been moving in the direction of this new dialogue through our industry relations committee, headed by Craig Walker, past president.

The committee exists to examine and develop the relationships between independent adjusters and other aspects of the p & c insurance industry — most notably, insurers, self-insureds, and independent brokers.

Tammy Norn is Chair of an industry relations sub-committee specifically targeting the issue of the relationship between independent adjusters, insurers and self-insureds. As the only national body representing the majority of independent adjusters in this country, CIAA is uniquely positioned to take up this discussion with insurers and self-insureds and to encourage a dialogue aimed at improving our relations and strengthening the industry’s ability to deliver what it sells, claims service.

CIAA’s effort to open this dialogue is beginning to show results. The joint conference involving members of the CIAA and the Canadian Insurance Claims Managers Association (CICMA) held in Baddeck, NS in late June featured a first ever common discussion forum involving p&c claim managers and independent adjusters. This is the beginning of what we anticipate will be a blossoming process of continued and deepening discussions between the insurers and independent adjusters that will benefit all concerned. We have approached some insurers direct to open the door and engage in discussion. We have been encouraged by those that have responded. In one case, we did not receive any response to our request for discussion however, we are not discouraged, as we believe the vast majority of insurers see the current problem for what it is and are deeply interested in being part of a cooperative solution. I extend an invitation to all claims professionals and non-claim Insurer executives to join in and be part of this dialogue with CIAA. If you are a non-claims executive with an insurer I ask that you encourage your company to participate. We are all in this together and with a combined effort we will get back to ensuring a steady stream of competent professional loss adjusters, every day. As a matter of note, 2008 is the International Year of the Potato. Really, it is! •