On large commercial losses over $250,000, engaging the right experts early and developing an efficient claims process is crucial.
When experts are thoughtfully selected based on their specific skillset and have clear mandates and oversight, an adjusting team can establish accurate information from the start. This enables faster decision making and reduces overall cycle time and business interruption.
However, too often, we see companies get off on the wrong foot after a large claim when they engage experts that don’t have the expertise required to contribute to a thorough, timely, efficient claims resolution.
In addition to a longer and more costly process, this can result in a 30% or more late increase in reserves. Proper reserves help ensure that claims are processed and paid without any unnecessary delays. (Reserves are the funds insurance companies set aside to pay for claims. Insurers estimate how much the claim will likely cost to settle and record that amount as a reserve.)
At Aviva, our Large Loss team plays a pivotal role in sourcing the right experts based on their specific skillsets and providing collaborative oversight as they consult on a claim. We take an active role in selecting and managing experts from the outset.
Here’s what the process looks like.
1. Not just any expert—the right expert
Not all experts have the same capabilities. Our team assesses the specific needs of each claim, such as structural, electrical, or mechanical issues. It’s not necessarily the firm that matters most, but the individual person who has the knowledge and experience for each loss. Aviva deliberately assigns experts with the right skill set and experience, often leveraging seven or eight experts on any given loss.
2. Clear mandates and active oversight
Our claims team acts as the quarterback on large loss claims reported to us early. We manage all aspects of the claim, including policy coverage and interpretation, control of experts, and customer service. The team issues precise instructions to experts with defined deliverables, timelines, and budgets. They stay engaged throughout the process to ensure everyone stays aligned with the claim strategy. This continuous oversight and direction sets clear expectations on what is needed to understand the values and ultimately settle the claim as efficiently as possible.
3. Accurate scoping, controls, and valuation from the start
Early involvement of the right experts ensures accurate scoping and valuation of the loss. This approach helps avoid reserve surprises and sets the foundation for effective claims control. The attention to accuracy allows for the shortest lifecycle of the claim, ensures the right amount is spent, and delivers a better customer experience.
Aviva’s goal is to deliver fair and accurate claims outcomes. When the wrong experts are used, the accuracy of information, the pace of decisionmaking, and the overall cost are affected. By paying the right amount and controlling costs, we’re able to stabilize premiums for the entire customer base over the longer term.
4. Improved customer experience
Our claims service tailors the claims journey by taking time to get to know your business, understand your industry, then shape the claim experience around your specific needs or segment. For example, in a past manufacturing claim, Aviva’s forensic accounting team was able to adjust their depreciation calculation based on the client’s use of machinery, resulting in a higher payment because they understood the nuances of the manufacturing segment. This focused approach ensures fair outcomes, reduces uncertainty, and supports longterm premium stability.
5. Faster claims resolution
With the right team in place from the outset, decisions are made faster and with greater confidence. The specialized management reduces the back-and-forth communication, shortens the claim lifecycle, and minimizes disputes. Aviva’s deep involvement ensures the claim is proactively moved with pace, allowing for accuracy in valuation and a quick resolution.
Case study: Multi-million-dollar fire loss for a large manufacturer
Aviva’s proactive approach was critical for a large Canadian auto parts manufacturer that experienced a catastrophic fire that destroyed a large portion of their equipment and impacted an entire facility.
Right at the beginning of the loss, Aviva was engaged and knew the claim required a multi-faceted team of experts. The team brought in:
- An origin and cause engineer who determined how the fire started, assessed contributing factors, and identified any potential avenues for subrogation.
- An equipment expert who spoke the language of large manufacturing, which built confidence with the plant employees. The expert created a clear action plan and was able to recommend to the adjuster which pieces of equipment were damaged beyond economic repair, providing the customer with peace of mind.
- A structural and mechanical engineer who could competently speak about building construction to ensure that, as the repair process went on, the right steps were taken to structurally address the damage. They assessed damage to the structure and building systems, such as HVAC, plumbing, and fire protection. Their expertise allowed for a rapid, detailed assessment of the damaged assets, distinguishing what was non-restorable and what was recoverable through specialized cleaning or repair.
- Building code experts to determine minimum requirements if the damaged building was out of code.
- Aviva’s in-house forensic accounting team who understood the specific language and terms in manufacturing accountancy to appropriately view the client’s loss, including the business interruption component.
Aviva leveraged this panel of experts, worked closely with the customer, and set specific mandates with written direction, including biweekly meetings to ensure everyone was in lockstep and knew the next steps.
This claim resulted in over a $7M payout and had them back up and running within 18 months.
Working through a large loss property claim demands strategic guidance and rigorous quality control. Our Large Loss team is proud to assume a quarterback role, selecting and providing oversight that elevates the work of consulting experts.
By setting clear expectations and managing experts under a defined strategy, we drive all efforts toward a swift, accurate, and stable resolution for large commercial losses.
How Aviva can help Our Property Large Loss team can review the identified experts in your Claims Handling Protocol and provide recommendations on your next annual review.
