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Growing loss complexity driving loss adjusting innovation: Cunningham Lindsey

6th June 2017 - Author: Luke Gallin

The evolution of the risk transfer landscape, underlined by increasingly complex insured losses, is driving greater innovation in loss adjusting, according to recent analysis from Cunningham Lindsey.

Cunningham Lindsay logoLoss adjusting, claims management, and risk solutions firm, Cunningham Lindsey, has produced its 2017 Major and Complex Loss Review, which reveals increased innovation in loss adjusting in response to increasingly complex risks.

David Pigot, Global Head of Major & Complex Loss, Cunningham Lindsey, said; “It’s clear from our report that the role of loss adjuster is changing as the nature and complexity of insured losses facing the insurance industry evolves. We are seeing more innovative approaches emerge, reflecting the changing nature of the claims being managed.”

According to the report loss adjusters are embracing the changing risk landscape and developing innovative solutions to the evaluation and management of claims. Loss adjusters often work in hazardous environments, and the report highlights an example in the U.S. where adjusters operating at a contaminated site were sent real-time text messages to warn when air quality levels dropped below safety levels.

This meant that adjusters could continue working so long as the site was safe to do so, which ultimately reduces the time and costs, and is just one example of how innovation and technology can be utilised to improve and advance elements of the insurance value chain.

The rise of cyber attacks and the inherent complexity with the exposure is also driving innovation in loss adjusting, explains the report. According to the Department for Business, Innovation and Skills, some 90% of large companies and 74% of small firms have experienced a cyber breach, and the recent WannaCry ransomware attack highlights how far-reaching data breaches can be.

The 2017 Cunningham Lindsey report explores a similar attack to the WannaCry breach that saw the adjusters’ cyber experts unlock the insured’s encrypted data and reinstate the companies’ IT systems.

“A response to a similar extortion attempt saw their cyber experts not only counter the threat but also identify the member staff involved in the attack,” explains Cunningham Lindsey.

Advanced technology and capabilities with aerial photography and thermal imagery are also discussed in the report.

“Ultimately, we exist to help insurers’ clients get their lives and businesses back on track.  As their needs change, so must the way we respond to achieve this aim,” said Pigot.

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