Loss Adjusting Opportunities In The Time Of Inflation

It’s not news that inflation is having an impact worldwide, and no one knows how long it will last. However, we’re in a much better position today with some significant strategic opportunities that can be taken from the situation. We share the three top tips for taking advantage of loss adjustment opportunities in a time of inflation.

Since the start of the pandemic, companies all over the world have had to deal with many hurdles, and one of the biggest we face today is inflation. For the first time in at least a decade, inflation has become the number one short-term consideration around the world. No one knows how long the current wave will last, but it could be for many years to come.

The typical response has been to select one of three unfortunate options – upset customers by raising prices, upset investors by cutting margins or upset teams by cutting internally. Most have resorted to raising their prices, but there may be other advantages to this trilemma.

We are in a much better position today than we were in the 1970s when “stagflation” hit the world. We now have a level of market visibility, data and the tools to analyse this information to support decisions. Today is an ideal time to treat inflation as a strategic opportunity, rather than a challenge, and choose from a better set of options.

We share three tips below to take advantage of loss adjustment opportunities in a time of inflation.

Tip #1. Cycle Time & Cost Control

Cost control hinges on supply chain, technical expertise both in building, estimation, project management and strong policy understanding in claim management.

The longer the claims cycle time, the higher the impact of inflation on your claim costs. With inflationary impacts, lag in cycle times due to various factors, the cost of a claim can creep up very quickly. When remediation costs are on the rise, always ensure there is an emphasis on the ways in which you can shorten the claims lifecycle, reducing the impact of inflation and/or the introduction of new information.

As an extension of your team, partnering with an experienced loss adjuster and third-party administrator, such as Gallagher Bassett, will support you to manage any excess BAU and/or Event claims volumes, so that the customer can move to remediation and/or a cash settlement as so as possible.

Outsourcing your insurance claims puts the pressure of cost into the hands of experts who understand the various strategies needed to help support lower claim cycle time which benefits your business and your Insured’s.

Tip #2. Leverage Tools and Tactics

Arm your business with the technology and insights needed to support estimate loss development factors by partnering with a third-party administrator who has access to industry leading tools and tactics. 

Partnering with Gallagher Bassett doesn’t just open the door to expert claims management professionals, but also our:

Loss Adjusting Specialists – Gallagher Bassett’s internal loss adjusting business and the on-the-ground eyes and ears enables your team to accurately estimate the risk of loss. Our team of loss adjusters are armed with the technology, data and deep expertise required to consider past and future trends into their estimation.

Extensive Supply Chain – Our partnerships with the repair industry ensures we are utilising the right experts needed as part of a repair strategy. The team’s wealth of knowledge and experience ensures that, where possible, risks are averted, and repairs are underway – shortening the claims lifecycle.

Our EQ and catastrophe claims management supports best practice claim strategies, resulting in a quicker turnaround, which helps reduce overall claim life cycles.

Tip #3. Innovative Responses

The expectations of loss adjusting have changed rapidly in recent years. Our solution is GB Live. GB Live is video technology that enables remote, unobtrusive site visits. While site visits will still be required on most losses, GB Live enables Gallagher Bassett to add value at every stage, employing the right resourcing at the right time to make immediate and informed decisions. Partnering with a third-party administrator, like Gallagher Bassett, can help arm businesses with technology and the key insights needed to support these factors.

Gallagher Bassett is the global leader in the provision of risk and claims management. Backed by more than 40 years of industry experience, our team of experts have the drive to take your claims management to the next level.

We have invested in leading technology, so you don’t have to.

Our internal loss adjustment business and the on-the-ground eyes and ears enable your team to accurately estimate the risk of loss. Our team of loss adjusters are armed with the technology, data and deep expertise required to ensure that the effects of inflation are minimized and the customer outcomes are maximized.

Contact our team to see how partnering with a TPA like Gallagher Bassett can see your business succeed.