The role of the technical consultant in insurance claims
In Greece the term used is technical consultant, in the UK it is loss assessor, in the USA it is public adjuster and in Oceanis it is claim preparer. Whatever they are called, they do the same job, helping insured companies or individuals who have suffered losses to be reimbursed by their insurance companies quickly, satisfactorily and with minimal involvment in the settlement process. The latter benefit is the most significant, although most insured underestimate it and as a consequence mistakes and delays occur, in times where wasting time may be very costly to a business.
For many years, the insured having suffered a damage have understood the necessity and usefulness of working with a loss assessor. However, now there is a growing belief within the wider insurance market that professional loss assessors are helping the insurance industry gain greater trust from policyholders.
In Greece, the procedures regarding the settlement of losses changed after the 1999 earthquake and the payment of compensations became difficult. SInce then, the claims departments of the insurance companies study the cases in depth and ask for more clarifications and documentation on several issues. In the past, these issues were covered sufficiently by simple references in the loss adjusters' expert reports. Claim files have now become larger in volume, since they do not only include simple tenders like before, but need to comprise. a multitude of financial and technical data, that require the preparation of sophisticated letters of expediency and documentation.
These processes made the insurance market feel that it was compensating properly, but on the other hand, they created a big gap between the insurance companies and their clients. This gap is now being filled by loss assessors. When working with loss assessors, the insured individual or company having suffered a loss expects them to prepare the claim file and to negotiate with technical arguments with both the loss adjusters and the insurance companies. Some would argue that such projects could be completed by the insured alone, just because they are good entrepreneurs and smart people. However, when one begins to read the insurance policy and is informed of all the elements necessary for the completion of an expert report, one immediately understands that it is not a matter of intelligence or ability but rather one of experience in losses and their management. While the insured person or entity has suffered a loss once or twice in their existence, the youngest loss adjuster works for an office with a cumulative experience of hundreds of years in losses. Therefore, it is easy to understand why this 'confrontation' will be unequal and the 'winner' seems to already have been declared.
The main need of the damaged parties, which is faultlessly covered by a loss assessor - which in some cases may be covered by the brokers - is to be informed accurately and promptly about how their insurance policy works in the case of loss. This need is not exclusive to the Greek insurance market, but is widespread all over the world and is considered to be the "best hidden secret in insurance".
In order for the loss assessors to be more useful to their clients, it has become evident through the practice of negotiations that it is only through the synthesis of opinions and close cooperation with all stakeholders that the best results are achieved in a settlement, while endless disputes should be avoided. The goal of the loss assessors and claim preparers is to contribute to the compilation of the necessary data with speed and accuracy, to inform the insured about the developments throughout the process and to explain to them exactly what each insurance policy covers and what it does not cover. At the same time, the loss assessors avoid the "setbacks" and protect the insured from suffering a second loss after the initial one. It is the duty of the loss assessors to provide comprehensive and accurate information to the insured who expect compensation, without embellishing the situation, in order to give them the opportunity to make the right decisions, based on all the data provided.
The greatest measures of success for a loss assessor firm are the speed of settlement and leaving no party feeling having compensated too much or having been compensated too little. Speed and balance should be the end goals. Loss assessors offer their services to intermediaries (brokers and agents) as well as lawyers, whose clients expect to be compensated either from an insurance company or other institution. Due to their professional experience with losses, the loss assessors also prepare pre-insurance valuations, in order to avoid any unpleasant under-insurance and unnecessary over-insurance. Furthermore, loss assessors with engineering qualifications and significant experience in loss management, carry out independent investigations into the causation of substantially large losses/damages. Finally, they provide technical support in trade agreements that fell through and provide consulting on risk management and safety issues.