An In­sight into the Loss Ad­just­ing In­dus­try

THE LOSS AD­JUST­ING IN­DUS­TRY IS AN IM­POR­TANT PART OF THE IN­SUR­ANCE IN­DUS­TRY AND YET, NOT MANY ARE FULLY AWARE OF THE ROLE IT PLAYS, THE DE­MANDS EX­PECTED OF THEM AND THE FRAUDS THE IN­DUS­TRY FACES. AB­DUL AZIZ MOHD NOR (AA), THE CEO OF AS­SO­CI­ATED AD­JUSTERS SD

Insurance - - CONTENTS -

I think pro­fes­sion­al­ism tends to carry dif­fer­ent mean­ing and em­pha­sis to dif­fer­ent peo­ple. At least it should in­clude some of the key el­e­ments – com­pe­tency, de­liv­er­ing and com­mit­ment

to qual­ity

In your opin­ion, what is the state of loss ad­just­ing in Malaysia?

AA In essence, Loss Ad­justers are in­de­pen­dent sur­vey­ors and as­ses­sors for the in­sur­ance sec­tor. Loss ad­just­ing is di­vided be­tween the mo­tor di­vi­sion which in­volves cars/ve­hi­cles, and the non-mo­tor side – which in­volves fire, bur­glary, con­struc­tion and per­sonal ac­ci­dent. The tech­ni­cal­i­ties are dif­fer­ent and the job is very chal­leng­ing, that’s one of the rea­sons why we don’t get many en­trants to the in­dus­try. But loss ad­just­ing is in­ter­est­ing. If you’re do­ing con­se­quen­tial type of losses, quan­ti­ta­tive meth­ods and an­a­lyt­i­cal skills are im­por­tant. You can even go into fi­nan­cial loss, like fi­delity guar­an­tee and poli­cies where you in­sure banks against the frauds of the em­ploy­ees.

JT

I think pro­fes­sion­al­ism tends to carry dif­fer­ent mean­ing and em­pha­sis to dif­fer­ent peo­ple. At least it should in­clude some of the key el­e­ments – com­pe­tency, de­liv­er­ing and com­mit­ment to qual­ity, client cen­tre with cus­tomers’ in­ter­est in mind. The other as­pect of pro­fes­sion­al­ism is much driven by the ethos of the com­pany and here the lead­er­ship of the firm is cru­cial. The con­tri­bu­tion of loss ad­justers some­times have not been fully ap­pre­ci­ated. Based on Bank Ne­gara Malaysia’s sta­tis­tics, loss ad­justers han­dled a to­tal of 400,000 claims an­nu­ally and that speaks vol­ume; with­out pro­fes­sion­al­ism, visà-vis com­pe­tency, com­mit­ment and cus­tomer care, that would have been near im­pos­si­ble to achieve, es­pe­cially when you con­sider that dur­ing the re­cent flood­ing in the eastern states in Penin­sula Malaysia where it was es­ti­mated that loss ad­justers han­dled/ in­spected at least 20,000 claims within that short pe­riod.

What are the chal­lenges faced by the loss ad­justers in­dus­try?

JT

Loss ad­justers are ser­vice providers to the gen­eral in­sur­ance in­dus­try and cer­tain as­pects of chal­lenges faced by in­sur­ers are in turn cas­caded down to the ven­dors in­clud­ing loss ad­justers. Claims man­age­ment is one of the most im­por­tant com­po­nents for an in­surer whose busi­ness are very clien­to­ri­ented. In our cur­rent busi­ness en­vi­ron­ment where cus­tomers are more de­mand­ing and ex­pect more, in­sur­ers would need to take in­cre­men­tal steps to im­prove the

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