Profile: Adjusters Preparing for Change

No one would argue the insurance industry is one that stands still, particularly not in today’s market. For adjusters, the changes are keenly felt, impacting how they do their jobs on a daily basis. From mergers and acquisitions to changing auto legislation to the growing litigious environment, there is no shortage of challenges for the profession. The purpose of the Ontario Insurance Adjusters Association (OIAA) in the coming year will be to help prepare the profession for the changes that lie ahead, says president Brian Nauss. He promises to keep education a top priority to help adjusters keep pace with the evolving marketplace.

Adjusters today face a “pressure-cooker environment”: new legislation, class action claims, rising loss costs, particularly in the industry’s largest market, Ontario auto. The concerns of adjusters are continually changing, says Ontario Insurance Adjusters Association (OIAA) president Brian Nauss.

Today’s adjusters are expected to know more, and do more than ever before, must multi-task and be able to adapt to new laws and new trends in claims. With a membership of 2,200 across the province, the OIAA is intent on helping adjusters cope with these changing times and so education will become Nauss’ priority in the year ahead.

HUMAN CRUNCH

It remains to be seen what impact the current hard market and tighter underwriting will have on the industry, Nauss says. But there does not appear to be any let-up in the need for quality adjusting. In fact, more and more onus is being placed on the profession to handle a growing claims burden. Even mergers and acquisitions amongst insurers have not reduced the workload, he says. “I don’t see things changing, regardless of whether there’s ten insurance companies or one. The industry is growing and we need new people.”

The question is how the industry will deal with this “human capital crunch”. Nauss echoes the concern that often students are not exposed to insurance as a career option. “With most people either it’s in the family or they just fall into it.” There is a need to educate students, for example those coming out of university with a B.A. or B.Comm. degree that “they can fit into the insurance industry”.

With attracting new people into the industry comes the need to attract new adjusters to the association. Already strong in existing members, Nauss says growth will come from these young adjusters. “The challenge with membership is the influx of new people into the industry. The only way you’re going to increase membership is to get these new people on board.”

And the association is going to get creative, particularly with its educational offerings in order to draw interest. “What additional value-added can we do [as an association]? We have to read the market to see what has been offered and what needs to be offered.” This requires close relations with insurers to find out what their corporate needs are in terms of education. It also means striking a balance between those needs and the needs of independents.

But, even more so, says Nauss, the challenge is to answer the growing specialization in the industry, particularly among big city adjusters. This contrasts with adjusters in small centers who are often called upon to deal with a broad spectrum of claims. “Is our goal to offer a broad spectrum [of educational topics] or do you go specific?”

CUTTING EDGE

The influx of private seminar companies and existing industry education sources are not a concern for Nauss, who says the association wants to take its offering in a different direction, as well as to keep the price down for students. “We’re not in competition with anyone but we’re trying to offer value-added to our membership, doing something that hasn’t been over-killed [by other educational sources].”

He will be looking to local chapter executives for ideas on province-wide educational programs, and the association is making strides toward online educational offerings through its website. The OIAA will also continue to develop its relationship with other organizations, including the Canadian Independent Adjusters Association (CIAA), Canadian Insurance Claims Managers Association (CICMA) and the Ontario chapter of the Risk & Insurance Management Society (ORIMS). Nauss says the OIAA wants to understand the issues these other associations see as important to work on educational opportunities.

Continuing education and whether or not it should be mandatory may be seen by some as a political “hot potato”, but Nauss’ view is that lifelong learning is something adjusters should be involved in regardless of whether a specific requirement exists. This is especially true in the current changing market place and given the demands now being placed on adjusters to be on the cutting edge. “I view education as a never-ending proposition. If people aren’t interested in keeping up with today’s topics then I think they are foolhardy.”

The OIAA is also still in discussions with other associations on the on-going debate around adjuster licensing. The CIAA in particular has hoped to see licensing in place, but the effort has been stymied. Nauss says that while talk continues, “so far, there’s been no word on it”.

JURY OUT

Among the changes adjusters will have to face in the coming year is the outcome of Ontario’s new auto insurance legislation. With the legislation passed, regulations remain to be worked out, and it is too early to tell just what impact the new rules will have on adjusters, particularly those in theaccident benefits claims area.

At the OIAA’s annual trade show and seminar, to be held in Toronto in February, the scheduled luncheon speaker is MPP Rob Sampson, who has been the main voice for the legislation. “Hopefully at that time he’ll have something concrete to report,” Nauss says.

Privacy legislation is also an ongoing concern. Despite the passage and implementation of federal privacy laws in 2004, it is expected that Ontario will be among the provinces presenting its own privacy act. Although the federal government requires there to be a certain amount of similarity in provincial legislation, there is every chance Ontario’s version may differ in some areas. Added to this are differing interpretations by each insurer and by independent adjusters. “It’s an issue for both insurance companies and independents. Independents will have to deal with their own corporation’s [privacy guidance] and the wishes of each individual company.”

The naming of adjusters as personally liable in bad faith lawsuits also remains an issue. “If you’ll excuse the expression, the jury’s still out. Personally I’ve seen it used as a tactic by lawyers. [However] if you’re doing everything according to corporate guidelines then you should be protected.”

VARIETY IS SPICE

Nauss may be particularly poised to understand the differing needs of association members, given his long and varied career. After graduating from the University of Windsor, he went to work in the family firm, Deeth & Nauss Ltd. Founded by his grandfather, the Sudbury firm had been in operation since 1935. In 2000, he decided to head south and joined Crawford Adjusters Canada, later moving to his current position at McLarens Canada’s London office.

Along the way, Nauss’ focus on education has shone through as he accumulated his CRM, FIIC and CFEI (Certified Fire & Explosion Investigator) designations. He also became involved early in the OIAA, first through its Northern Ontario chapter where he moved up the ranks to president and chapter delegate. He similarly moved up through the ranks of the provincial association executive and in September assumed the presidency for the 2002-2003 year. He is a member and former rules and regulations chairperson for the CIAA. Along with his presidential goals for the coming year, Nauss says he will also be preparing for the move to London with his wife Ty, and daughters Merran and Aidan.