Maintaining a carrier mindset and fueling a customer-focused approach

October 27, 2023

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Across the auto industry, trends range from lengthy cycle times and high indemnity costs to inefficient repair processes. This can often mean having to make a dozen calls to solve each challenge. But what if carriers and third party administrators (TPAs) worked together to become an extension of one another? 

The power of coming together

In this complex environment, strategic partnerships are more important than ever. Carriers are seeking solutions to various claims problems that are digging into profits, and turbulent times call for the utmost streamlined, efficient processes. Technology offers a significant opportunity to reduce claim costs; however, the capital investments required for some carriers and self-insured clients is high. 

Combining advanced technology with multiple methods of inspection (MOIs) helps control indemnity and cycle times. Our dedicated, full-time field staff appraisers are experts not only at estimating auto damage but providing outstanding customer service. Meanwhile, our vetted 1099 appraisers are qualified to support appraisers in providing nationwide coverage. Simply put, we act as an extension of the carrier to help restore efficiency and provide leveraged buying power that provides peace of mind in a difficult time.

Whether a client needs access to appraisersdirect repair auto shops, photos only solutions or staffing support, there’s peace of mind in having access to a one-stop-shop.

Staffing shortages

In today’s insurance market, companies must stay flexible and be able to respond to changes quickly. When an unexpected surge in claim volume occurs, it can cause staffing resource issues and service challenges. A TPA like Sedgwick can help insurance carriers manage increased claim volumes and ensure seamless services for clients and policyholders. 

In one case, a national carrier had a growing number of claims and not enough trained adjusters to manage them. Sedgwick first provided 25 full-time claims colleagues and delivered training within 15 business days, then expanded to include 100 claims colleagues within 60 days and nearly 200 by 90 days. This enabled the carrier to successfully manage their claims volume and maintain high quality service for policyholders. 

Weather catastrophes

When Hurricane Ian — the third-costliest weather disaster on record — made landfall last year in southwestern Florida, residents and CAT vendors alike were ill prepared for its severity. Many Florida-based carriers faced adjuster shortages when catastrophe hit, the moment their policyholders needed their help and support most. 

By the end of Ian’s wrath, affected areas sustained estimated preliminary insured losses between $50 billion and $65 billion, according to a December 2022 Swiss Re Institute report. Ian is also estimated to be the second-costliest insured loss on record, exceeded only by Hurricane Katrina in 2005. Among the destruction, experts estimate 70,000 vehicles were destroyed and more than 350,000 were damaged. These outcomes are neither adequate, nor sustainable.

Imagine instead, a coastal-based carrier partners with Sedgwick months earlier. A contract is secured that offers the following: in the event of a hurricane, within 24-hour notice, Sedgwick deploys 50 inside adjusters to the site. These adjusters have already familiarized themselves with the carrier’s CAT response processes. They have access to the carrier’s internal systems and technology. Their high level of technical expertise replicates the carrier’s own in-house adjusters’ and upholds their standards of service. 

Then news of a tropical storm spreads. It intensifies rapidly into a hurricane as it nears landfall, growing stronger than predicted, ready to batter thousands of insured cars and homes. A carrier has less than 24-hours to ready a team, but lacks adequate manpower. One phone call and they’ve secured 50 adjusters. No more scrambling to make dozens of calls, in desperate times, when every moment counts. 

Strategic partnership

Sedgwick has revolutionized auto loss adjusting and claims administration with our end-to-end auto solution, the industry’s most complete claims and loss management offering for insurance carriers, fleet management companies and corporate customers. We’re there for you when and where you need us most, with a carrier mindset and customer-focused approach.

Tags: appraisal, Auto, Auto Loss, auto repairs, CAT Respnose, Catastrophe, MOI, policyholder, Property, Property damage, STaffing, Weather, Weathering disasters