The International Federation of Adjusting Associations

Annual Conference

John Hurrell CEO of AIRMIC

Thursday 30th April 2009

Agenda

1. Claims on the AIRMIC Agenda

2. Claims Best Practice Guide

3. Reservation of Rights

4. Speed of Settlement

5. Contract certainty

6. The future!

IFAA

IFAA

Claims on the AIRMIC Agenda

• Critical importance for members

• Impact of the recession

• Transparency of claims services

• Willingness to Pay vs. CBPG

IFAA

Claims Best Practice Guide (I)

• Why did we produce it?

•How did we compile it?

•Who is using it?

Claims Best Practice Guide (II)

Key Components

1. Culture and Philosophy2. Communications3. People4. Infrastructure5. Claims Procedures6. Data Management7. Operations8. Monitoring and review

IFAA

IFAA

Claims Best Practice Guide (III)

Some critical elements

• Culture and philosophy* Reporting lines* Investment* Transparent client commitments

• Communications* Formal guidelines* Escalation and complaints* External parties

IFAAClaims Best Practice Guide (IV)

Some critical elements (cont)

• People* Capacity model* Succession planning* Experience* Retention

• Infrastructure* Efficient and adequate IT systems* Client access to information and data

IFAA

Claims Best Practice Guide (V)

Some critical elements (cont)

• Claims procedures* Use of specialists (including loss adjusters)* Commitment to timelines* Embedding of Reservation of Right SOP

• Data Management* Data sharing

IFAAClaims Best Practice Guide (VI)

Some key elements (cont)

• Operations* Written protocols for third party service provider performance* Rapid payment procedures* International co-ordination

• Monitoring and Review* Independent internal review of claims dept. performance* Client feedback assessment

IFAA

Reservation of Rights

• Member feedback in 2008• Critical client issues

*Accounting*Finance*Speed of Settlement

• Insurer responseACE, AIG, Allianz, AXA, RSA, XL, Zurich

IFAA

Speed of Settlement

• Background

• Current discussions*Cash flow planning*Cash neutrality through interim payments

• Next steps

IFAA

Contract Clarity

• AIRMIC members concerns

• Potential solutions*Scenario planning*Disclosure agreements*Agreed values vs. indemnity

IFAA

The Future!

• Transparency and technology

• Resourcing

• A strong loss adjusting profession!!