Managing Loss Adjusting Operations

Question 1

Managing any business requires a thorough understanding of its nature, this can include what?

Answer 1

• Its PURPOSES
  – Its major ACTIVITIES
  – Its CLIENTS
  – The SKILLS required from its staff

Prompt- In nature you use PACS

Question 2

What are a loss adjusters main functions?

Answer 2

• Pursue RECOVERY from a responsible party where possible to do so
• ASSESS the amount of the loss and adjust within the specific terms of policy
• INVESTIGATE the cause of a loss and apply the terms of the insurance policy to the cause
• NEGOTIATE A claims settlement that is acceptable to the various parties

Prompt- A Loss Adjusters biggest fear is RAIN

Question 3

Who would engage the services of a loss adjuster?

Answer 3

• Insurers
• Brokers or agents
• Solicitors
• Insured persons
• Self-insurers
• Uninsured persons
• Third parties
• Government bodies

Question 4

What has the consolidation of insurance businesses done to the loss adjusting and insurance industry?

Answer 4

The consolidation of the insurance industry has led to a segmentation within the industry. There is now a growing distinction between the ‘volume’ end of the market and the larger ‘quantum’ end of the market.

Question 5

What are small loss adjusting practices that deal with specialised types of claims such as Engineering or Business Interruption generally called?

Answer 5

These types of Loss Adjusting practices are generally called niche businesses.

Question 6

What type of work do small loss adjusting firms (niche businesses) usually carry out?

Answer 6

Small loss adjusting businesses tend to be specialists in a particular field such as engineering, business interruption, computer associated losses, etc.

Question 7

What type of business do large Loss Adjusting practices generally cater for?

Answer 7

Large loss adjusting practices generally cater for the ’volume’ portion of the market, and are generally required to tender for large portions of a principals business.

Question 8

Large loss adjusting practices generally employ a wide range of skilled persons in order to adjust the various claims they receive. Name some of the types of skilled person they may employ?

Answer 8

• SPECIALIST loss adjusters- Skilled and experienced loss adjusters who handle large losses; for example, business interruption, machinery breakdown, business liability, etc.
• GENERAL loss adjusters- Handle domestic and small to medium commercial losses
• Claims TECHNICIANS- Provide back up services for loss adjusters and carry out low quantum assessments
• General MANAGER or office manager- Responsible for personnel, resources and administration management
• ACCOUNT managers- Individual loss adjusters are often appointed to be the account manager for a client or group of clients
• ADMINISTRATIVE assistants- Perform a number of roles including secretarial, file maintenance, general office procedures, etc

Prompt- SGT MAA

Question 9

What are the principle aspects to take in to consideration, when describing the average loss adjusting practice?

Answer 9

• PREMISES of the business
• PERSONEL of the business
• FINANCIAL performance
• TOOLS and equipment used by the staff

Prompt- PPFT, whatever principle!!

Question 10

What is operations management?

Answer 10

Operations management encompasses all the management aspects involved in CONTROLLING, LEADING, ORGANISING and PLANNING performance to achieve the business plans of the team or organisation.

Prompt- Ohhhh man, management is so slow CLOPping along :(

Question 11

What are two important traits of a manager?

Answer 11

Managers must be both EFFECTIVE and EFFICIENT.

Question 12

Describe an effective manager?

Answer 12

And effective manager selects appropriate goals and accomplishes them.

Question 13

Describe an efficient manager?

Answer 13

An efficient manager gets things done within a realistic time, and within funding frameworks.

Question 14

What are the 4x basic management functions?

Answer 14

• Controlling
• Leading
• Organising
• Planning

Prompt- Ohhhh man, management is so slow CLOPping along :(

Question 15

Describe the management function- Planning?

Answer 15

The management staff of a loss adjusting business define the purpose of the business, and the means to achieve that purpose. This management function includes defining goals, establishing an overall strategy for achieving these goals and developing any further plans to coordinate activities.

Question 16

With regard to the management function- Planning, discuss the following-

• Defining goals
• Succession planning
• Establishing strategy

Answer 16

• Defining goals- Involves determining what you want to reach and whether it is realistically attainable.
• Succession planning- Continuance of the business requires succession planning.
• Establishing strategy- This determines how you will reach the goals you set through resources such as marketing, budgets and time plans.

Question 17

Describe the management function- Organising?

Answer 17

Managers are responsible for designing the structure of an organisation. Organising includes determining what tasks are to be done, who is to do them, how the tasks are to the grouped, who reports to whom, and where decisions are to be made.

Question 18

Describe the management function- Leading?

Answer 18

The function of leading involves directing and coordinating staff of the organisation.

Question 19

Describe the management function- Controlling?

Answer 19

To ensure that things are going as planned, management must monitor the organisations performance. Actual performance must comply with the previously set goals, and if there are any significant deviations, it is managements job to get the organisation back on track.

Question 20

Name the 3x main management roles?

Answer 20

• Interpersonal roles
• Informational roles
• Decisional roles

Question 21

With regard to management roles, define interpersonal roles?

Answer 21

Interpersonal roles are roles that involve working with other people. LIASON is a major managerial activity as it involves contacting individuals or groups, either inside or outside the organisation.

Question 22

With regard to management roles, define informational roles?

Answer 22

Informational roles can include monitoring outside organisations or institutions to learn of changes and disseminating information within the organisation. NETWORKING is a major part of this role.

Question 23

With regard to management roles, define decisional roles?

Answer 23

Decisional roles involve undertaking activities that focus on decision-making.

Question 24

With regard to management roles, what are the 4x main types of decisional roles that a manager may perform?

Answer 24

• NEGOTIATORS- Managers discuss and bargain with others, either within or outside the organisation.
• ENTREPENUERS- Managers act as entrepreneurs in initiating and overseeing new projects to improve the organisations performance.
• RESOURCE allocators- They allocate human, physical and material resources within the business.
• DISTURBANCE handlers- They also act as disturbance handlers taking corrective action when problems arise.

Prompt- The former Debt Recovery Decisional Manager- Peter Cook, was such a NERD.

Question 25

What is the main difference between a small business managers role and a large business managers role?

Answer 25

A small business managers most important role is that of spokesperson, an outwardly directed role aimed at liaising with customers, promoting the business and developing contacts. In contrast, the most important concerns of a manager in a large organisation are directed internally.