Power of the people

Commercial Risk Europe talks to Yves Thaens, branch manager for Belgium at Charles Taylor Adjusting, about the importance of hiring and training the right people.

The biggest risks facing Belgian companies are economical, ecological and technical, says Yves Thaens, branch manager for Belgium at Charles Taylor Adjusting. In light of the economic downturn and a rise in inflation, companies face an increase in their costs at a time when revenues are under pressure.

The increased ecological risks are also plain to see. “The changing climate and subsequent risk has led to a rise in the frequency and severity of storms, floods and extreme weather,” says Thanes.  And there are technical risks as a consequence of the transition to net zero. “The move to renewables and potentially less reliance on the grid and people will lead to a reduced workforce and a decline in the influx of new recruits and, overall, fewer suitable candidates,” says Thanes.

When it comes to how these risks have been reflected in insurance coverage, the lines with biggest volumes are product liability claims, especially in the food industry as a result of increasingly stringent rules, and machinery damage due to a decline in maintenance, as a result of several crises.

These risks have been prominent for more than a year, however they have become more intense in the last 12 months as a result of volatility over energy prices and the cost of raw materials. In addition, the cost of claims has increased as a result of inflation – all things that have emerged in the last year.

The rise in sustainability disclosure requirements and ESG themes has also been a feature of the corporate landscape across Europe in the last 12 months. While Thaens says ESG is yet to become a significant factor in the relationship between insurers, insureds and third parties such as loss adjusters, he does see difficulties ahead.

He cites the example of the move to electric vehicles. Company cars are prominent in Belgium and the government has mandated that they must all be electric by 2026 to qualify for various tax breaks. But concerns over the cost, range and the availability of charging stations, as well as a lack of demand among consumers, will cause difficulties during the transition.

Thaens sees greater potential for hydrogen as an energy source for cars but the H2 network is underdeveloped at the moment. “This compromises our mobility as loss adjusters,” he says.

Skills shortage

Another difficulty facing loss adjusters and the insurance industry as a whole is a skills shortage, says Thaens. A combination of demographics and fewer people coming into the insurance industry means there is a shortage of highly skilled and experienced loss adjusters. “The industry is walking on a sharp edge,” says Thaens.

Some companies have turned to the use of sub-contractors as a short-term measure, but in order to solve problems on a long-term basis, firms will have to start training up apprentices to avoid capacity issues, suggests Thaens.

Ensuring adequate capacity to handle claims is the key to good customer service, he says. “We also have to ensure that we deliver in time and in accordance with agreements and we keep our clients informed at all times so that they know their assignments are high on our agenda.”

Technology has been cited as a way to handle capacity issues and labour shortages in other markets. But Thaens sees less potential for automation or artificial intelligence in the loss adjusting area, where jobs can be complex and hugely variable, especially where property damage is involved. However, IT systems need to be up to date so they can handle administrative tasks speedily and reliably.

“My golden rule is that a loss adjuster cannot earn his money by spending his time on trivial administrative tasks. These are better left in the hands of people that are hired for this type of job or a proficient IT system so that we can handle our assignments with speed and quality and concentrate on the things that matter and for which we are paid,” says Thaens.

This means hiring highly motivated people that take their role seriously, says Thaens. “We need to convince insurers that the quality we provide is in accordance with the price. Every mission needs to be treated as if our life depends on it.”