Claims teams will come under increased pressure due to increased severity and frequency of catastrophic events.
2018 was a tumultuous year for claims teams, and there is no sign of it letting up. We are seeing an increasing severity and frequency of catastrophic events, from hurricanes and wildfires to cyber data events. These massive high-exposure claims continue to piggyback on one another and are stretching the industry’s claims resources both internally and externally with professionals hired to handle claims. Properly managing these outsourced services will continue to be a challenge because when these massive events happen they are taxing the person power of the industry.
Claims management resources will continue to be an issue in 2019 and beyond as we await a generation of claims professionals to retire. Claims and adjustment staffs are quickly aging out, and the departments will be further drained of expertise. Determining who will fill these positions will not be easy. The process must start now to ensure the proper recruiting and training to help future claims professionals understand the nuances and challenges of managing catastrophic claims.
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