It’s 7:51 AM, and your phone is buzzing nonstop. Reports of a devastating windstorm are pouring in from across your company’s territory. Meanwhile, icy roads in another region have caused a surge in auto accidents and slip-and-fall claims. Your property adjusters are maxed out, liability adjusters are triaging property losses, and your two general adjusters are still tied up on major fire claims. Its time for claims crisis management.
There’s a knock at your door. The CEO stands there, watching the Weather Channel on his phone. “I’ll need reserve estimates by noon,” he says.
This scenario highlights the critical importance of preparation. In a crisis, your ability to execute hinges on the groundwork laid long before disaster strikes. Here’s how to ensure your department is always ready to respond.
The Non-Negotiable Need for Pre-Planning
Pre-planning isn’t just a best practice—it’s the foundation of a successful crisis response. Without a clear, rehearsed plan, even the most experienced teams can falter. Here’s how to prioritize pre-planning and make it an integral part of your leadership strategy:
1. Develop a Catastrophe Handbook
A comprehensive Catastrophe Handbook is your roadmap for crisis management. It should outline:
- Roles and responsibilities of each team member during a crisis.
- Detailed triage protocols for sorting claims by urgency and complexity.
- Processes for gathering and reporting reserve estimates quickly.
- Pre-approved vendor lists, including IA firms for both property and liability claims.
Ensure this document is updated regularly and easily accessible to your team.
2. Conduct Regular Crisis Drills
Crisis drills are where planning meets practice. Treat these drills with the same seriousness as real events.
- War Room Scenarios: Assemble your leadership team and walk through a hypothetical crisis. Discuss the timeline, decision-making process, and potential challenges.
- Physical Triage Drills: Set up a dedicated triage space, complete with extra tables, file boxes, and other necessary supplies. Practice mobilizing your team and resources as if the crisis were unfolding in real time.
The goal is to identify gaps in your plan and fine-tune it until everyone knows their role and the department functions seamlessly under pressure.
3. Build and Strengthen IA Relationships
Independent adjusters will be vital during claims crisis management, but these relationships need to be established well in advance. Vet IA firms for both property and liability claims, and ensure they’re familiar with your company’s expectations. Have contracts in place and confirm their availability for immediate deployment when needed.
4. Establish Clear Reserve Estimation Protocols
When the CEO demands reserve estimates, there’s no time for guesswork. Pre-plan a system for gathering damage details and calculating reserves efficiently. Train your team to deliver accurate estimates under tight deadlines, ensuring you’re ready to provide leadership with the information they need.
5. Monitor and Maintain Team Readiness
Your team is only as strong as its weakest link. Regularly assess workloads, skill levels, and stress indicators to ensure everyone is operating at their best. Provide ongoing training and support to build confidence and resilience, so they’re ready to rise to the occasion during a crisis.
The Payoff of Preparation
When the storm hits, a well-prepared department doesn’t just survive—it thrives. Pre-planning ensures that everyone knows their role, critical tasks are completed efficiently, and leadership receives the information they need without delays. It protects your team from burnout, safeguards your company’s reputation, and positions you as a steady, reliable leader.
As a Vice President of Claims, pre-planning is your greatest asset. By creating a Catastrophe Handbook, conducting regular drills, and building strong partnerships, you can face any crisis with confidence. The time to prepare is now—because when the next storm comes, you’ll want your team and resources ready to weather it.
By partnering with Auten Claims Management, you can leverage our expertise to make informed decisions that protect the interests of your company and policyholders. Take the first step towards better claim management by contacting us today to learn more about our personal injury claims investigation services. Together, we can achieve optimal outcomes for all parties involved. We’ll get the facts, so you can make the right decisions on your claims. We’re on your team. We’re on your team. Contact us today.