Section 1- Negotiation In Insurance

Question 1

Loss adjusting is a ‘what’ process?

Answer 1

Dynamic.

Question 2

What is the acronym used to remember what the loss adjusting process involves?

Answer 2

DER. Loss adjusting is a dynamic process DER!!

Question 3

What does the acronym DER stand for?

Answer 3

• Detailed investigation
• Exploring options
• Reaching agreement

Question 4

 Describe the 3x definitions of negotiation outlined in the text?

Answer 4

Macquarie Dictionary- negotiation is the mutual discussion and arrangement of the terms of a transaction or agreement.

Fisher & Ury: 1981- negotiation is a basic means of getting what do you want from others using back and forth communication.

 Donaldson and Donaldson: 1996- negotiation is in a communication in which you are attempting to achieve the approval, acquiescence or action of someone else.

Question 5

When is a loss adjuster’s services normally required, and what is a loss adjuster’s role?

Answer 5

A loss adjuster normally becomes involved when a loss has occurred. The loss adjuster‘s role is then to negotiate a settlement of the claim.

Question 6

What is required at both ends of the claim spectrum in order to negotiate a settlement of the claim?

Answer 6

• preparation is needed to make sure that key facts are established
• A level of skill is required to negotiate effectively
• The more complex the loss, the greater the degree of preparation and skill that is required

Question 7

For negotiation to be successful, Roger Fisher recommends to aim for the following outcomes?

Answer 7

• The agreement should represent something better than the alternative available
• The agreement should satisfy the interests of all/both of the parties- 
• my sides interests- well
• the other sides- acceptably 
• third parties- tolerably
• The agreement should represent the best of the options available
• All parties should feel that they have not been taken

- Agreement should only contain undertakings that are well thought through and can be adhered to

• The agreement should be obtained in such a way that the parties and their representatives, if any, should be able to deal with future problems easily

Question 8

What does negotiation require in order to be successful?

Answer 8

Successful negotiation requires effective communication.

Question 9

What are the 3x particular problems that Fisher & Ury (1981) refer to in relation to communication, and what is the wordplay used to remember these 3x points?

Answer 9

• not talking
• not hearing
• misunderstanding
• NotNotMis

Question 10

What is the basic skill that is needed to overcome issues with communication?

Answer 10

Listening.

Question 11

What do successful negotiators spend most of their time doing?

Answer 11

Successful negotiators spend more time listening than they do speaking- Donaldson & Donaldson: 1996

Question 12

What is the result when active listening is effective?

Answer 12

If listening is effective, it actually enables others to open up and express themselves more and more fully.

Question 13

What are the 2x active listening techniques you can use to ensure that the other party knows you have heard them fully and correctly?

Answer 13

• restating- this means repeating Word for Word what the other party has just said
• paraphrasing- this involves summarising in your own words what the other party has just said

Question 14

What may happen if the other side does not think that you have heard them fully and correctly?

Answer 14

They may not give you a response credence and might simply want to repeat themselves.

Question 15

 What emotional ability is fundamental to a successful negotiation?

Answer 15

Empathy.

Question 16

Describe empathy?

Answer 16

Empathy goes beyond sympathy. Sympathy means you feel for someone; empathy means you feel with that person. Empathy also goes beyond understanding. Understanding can involve a mere intellectual appreciation, where is empathy involves tapping into the emotions the other person feels.

Question 17

Where an issue exists between the parties, what action should be taken to progress the negotiation?

Answer 17

Face to face communication.

Question 18

When is it appropriate to conduct a negotiation in writing?

Answer 18

• when there is clear and mutual understanding of the different positions taken by the parties
• when the issues involved a relatively straightforward
• the difference between the parties is relatively small

Question 19

Name 4x types of communication that are involved in a negotiation?

Answer 19

• active listening
• empathy
• face to face communication
• communication in writing

Question 20

Who are the 5x common parties involved in a negotiation regarding an insurance claim?

Answer 20

• Insurer- generally the party that is being asked to make a payment under claim
• Insured- generally the party that has suffered a loss
• Broker- the broker is the agent for the insured
• Third-Party- while the insurer has a relationship with the insured, it does not have the same relationship with third-party which can affect its attitude toward the claim
• Suppliers- suppliers stand to make a windfall gain from the claim

Question 21

What is one of the best known and most widely used framework for analysing personality types?

Answer 21

Myer-Briggs type indicator (MBTI)

Question 22

What 4x preferences does the Myers-Briggs type indicator show?

Answer 22

• how we see reality
• how we judge that reality
• where we go to get our energy for life
• how others see our orientation to the world

Question 23

According to Carl G Jung, when people’s minds are active they are involved in one of 2x mental activities. Identify the 2x mental activities?

Answer 23

• taking in information- labelled ‘perceiving’

- organising that information and coming to conclusions- labelled ‘judging’

Question 24

Explain Carl G. Jungs observations with regard to ‘perceiving’?

Answer 24

Jung identified 2x opposite ways that people perceive, labelling them sensation and intuition.

Question 25

Explain Carl G. Jungs observations with regard to ‘judging’?

Answer 25

 Jung identified 2x opposite ways that people judge, which he labelled thinking and feeling.

Question 26

Explain the difference between people who are introverted, and people who are extroverted?

Answer 26

Those with an extroverted orientation tend to be energised more by the external world of people, experience and activity while those with an introverted orientation tend to be energised more by the internal world of ideas, memories and emotions.

Question 27

In the Myers-Briggs type indicator model, how are people classified?

Answer 27

In their system people are classified according to the following differences-

• where they go to focus their attention and get energy –extroversion or introversion
• the way they prefer to take in information- sensing or intuition
• the way they prefer to make decisions- thinking or feeling
• how they orientate themselves to the external world- with a judging process (judging) or a perceiving process(perceiving)