• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • MENU

Innovate or Hand Over Your Customer

SHARE THIS

By Steve Wightman

Steve Wightman of Polished Rock

Florida is among the riskiest places on the planet to insure property.  Besides its natural pull to perils, it has become the center of the universe for innovating ways to drain insurers’ pockets. Innovative Claim Makers’ (third parties filing claims on behalf of policyholders) astonishing proficiency at deep-pocket-picking is not the real problem.

The real problem is the accelerating rate which Claim Makers are converting insurance consumers into being their customer.  Clearly an insurance company’s formula to offer friendly service with an expeditious settlement check – and sincere best wishes with rebuilding – is not as attractive as what your adversaries are offering.  So how exactly does a Claim Maker operate and how does it hurt the insurance consumer they advertise as helping?

Because of Hurricane Ida’s widespread destruction in Louisiana, there are millions of overwhelmed residents out of their homes, jobs, and businesses.  Most of these people know virtually nothing about executing construction; especially unplanned construction in an apocalyptic environment.

Then, the knock on the door from a nice person that shares a rebuild-vision, recommends the homeowner seize a slot in the Claim Maker’s que, throws in some perks, and tells them the check the insurance company offered is not enough; but that can fixed!  Sold.

It should not be such a surprise that Louisiana Assignment of Benefits (AOB) contractors (Florida still has contractors who continue to use AOB- type contracts with the same intent of assuming the consumer’s policy rights) have changed the landscape so rapidly.  AOB contractors offer customers a turnkey answer to their problem of rebuilding that sounds better than “good luck.”  It’s a huge emotional relief.  Sirens to warn them about potential downsides of these relationships continue to sound, but not loud enough as a solution for the customer’s survival of the transaction.

Ironically, insurers start with all the advantages.  They understand unplanned construction – it has been their obligation to understand future reconstruction events for centuries.  Adjuster estimates include every excruciating detail down to the nail.  Insurers are usually first to get the call from the customer.  Drone imagery is available within hours to assess damage.  The AOB contractor has some pretty significant disadvantages to convert insurers’ customers over to them, yet their success rate is accelerating.

Claim Makers saw an opportunity to develop innovative ways to turn a policyholder against their insurance company, take control and then hyper-amplify claims costs.  Each year this segment becomes more legitimate to the supply chain.  They will not stop innovating ways to steal customers and drive insurance premiums because most specialize in inflating claim costs.

I hope this article reminds insurance companies that they started and can maintain the customer relationship!  Don’t let the forefathers’ definition of “demand surge” continue to drive unquestioned payout-panic.  Insurance companies could rethink widespread losses as a single loss with many locations.  Take inventory of the material and labor resources needed.  Consider just how important modern technology is in the rebuild-world.  Share the important demand-surge-defying assets to “take care of it” for insured customers showing them that their insurance company is loyal and will rebuild efficiently, much more efficiently than AOB contractors ever can.

Steve Wightman is CEO at Polished Rock. Steve has 30 years of experience studying the friction that each stakeholder involved with property losses experiences. The company consults to insurers and reinsurers to address reconstruction and supply chain friction following catastrophe. Wightman can be reached at [email protected]

LMA Newsletter of 10-4-21

SHARE THIS

Tags: Assignment of Benefits, Claim Makers, Claims Adjusters, Florida Homeowners, Florida Property Insurance, Steve Wightman

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2023
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts