Growth in arson attacks a burning issue for loss adjusters

Loss adjustment and clear communication must go hand-in-hand.

That’s the advice of Tim Koeppler, Executive Adjuster, Property, Casualty, Technical & Special Risks, at Charles Taylor Adjusting in Melbourne.

“It’s essential to be able to communicate clearly with everybody that's involved in the claim process,” says Koeppler, who is one of the speakers at the 2024 AICLA/ANZIIF Claims Convention.  

“You also need to be able to think outside the box to come up with solutions to particular issues that may arise with claims."
"And when you come up with solutions within the terms of the policy, it can be incredibly rewarding, because it usually means that everyone is satisfied with the outcome.”

At the upcoming Claims Convention, Koeppler will discuss the emerging risks in arson claims.

In the higher courts of Victoria alone, 216 charges of arson were sentenced in the five years to 30 June 2023. 

“I’ll be speaking about the recent growth in arson attacks, as seen in the media, how it affects insurance availability and the challenges it creates when assessing related claims,” says Koeppler

“I’ll cover a pretty broad range in my presentation, although it’s important to protect the businesses that have actually been involved,” he adds. “But I've had discussions with authorities in order to develop an understanding of where they're at with their investigations and the task force involved.”

Global insurance opportunity

Koeppler joined the insurance industry in 2000 after working in credit control and reconciliations in the finance sector.

“I didn’t have a thorough understanding of insurance at that stage, and it was an opportunity at a global insurer that had me land in the sector,” he explains.

Koeppler’s first role in insurance focused on debt recovery, but he quickly developed an interest in the claims side.  

“After a couple of years working in Recoveries, I started working in public and product liability claims, and the most interesting cases were where people had become injured by falling over in supermarkets, or sustained injuries while working in their own business,” he says.

“Then as I started to deal with more complicated claims, we required the assistance of loss adjusters to be able to provide background and conduct circumstantial inquiries regarding the actual claims.”

“I didn't find out about loss adjusting until a few years into my career when I started in Liability Claims," he adds.

"I thought it seemed like an excellent role. Where else do you get to essentially set your own timetable, meet people in person rather than just over the phone or via a screen, and be able to help them get back to trading or back into their homes?  

"I’ve always thought that insurance is about helping people, and loss adjustment is a vital element of this.”

Finding empathetic solutions

Fire — whether accidental or the result of arson — has major economic, material and psychological impacts on the individuals and companies involved.

While not every claim turns out as policyholders would hope, Koeppler believes that where loss adjusters get it right in delivering claim outcomes quickly in arson claim assignments is “through completing the initial assessment as soon as practical following the event and coordinating trades and suppliers at early stages of the claim”.

“Clear communication with all the parties throughout the life of a claim is a must,” he says.

“Working well with all suppliers, consultants, contractors, solicitors, insurers, and everybody else involved in the claim is also essential to being able to agree to the outcomes at each stage of a claim.

"You need to be able to collaborate with others, because there are so many layers and so many people involved.”

Koeppler adds that providing settlement recommendations to assist the policyholder, where applicable and where the policy allows, is also an important part of the process.

“As an example, you might consider making a payment recommendation to the insurance company as a payment on account,” he says.

“If a claim costs at least $50,000 and there are no issues about coverage, while you're still quantifying everything, you might want to consider putting forward a payment of $10,000 to assist the policyholder in the short term while everything's being assessed and quantified.”

Loss adjusting and technology

Smart technologies like artificial intelligence and the Internet of Things are helping insurers to streamline the claims processes.

While technology will bring further efficiencies to the claims process, Koeppler says that when things go wrong, “people need to talk to people”.

“You don't want a generated conversation from a chatbot that asks very vague questions to try to provide information about a claim,” he says. “You want to be able to talk to somebody.”

In terms of arson investigations, Koeppler says technology has delivered huge improvement in conveying information.

“As an example, you've got things like 360-degree cameras where it actually shows an entire room as opposed to an image of one particular wall or appliance that was damaged,” he says. “It helps to paint a better picture of the reality of the loss for the claims handler at the end of the day.”

Koeppler adds that technology will continue to help loss adjusting firms in putting together scenarios, but the basics will never change.

“You still need to establish the facts and the sequence of events and the extent of loss, and then interpret that within the terms of a policy and provide the settlement or repair outcomes for every single claim,” he says.
Insights and knowledge on the table
The AICLA/ANZIIF Claims Convention will attract delegates, industry experts and world-class speakers from across Australia, New Zealand the Pacific and Asia.

It is designed to give professionals the insights and knowledge they need to tackle the key issues facing the insurance sector both now and in the future.

Koeppler says the event provides the resources that can help industry professionals stay informed about current issues and challenges.

“I've seen a broad guide of what's going to be presented at the convention, and I am looking forward to it,” he says.

“In terms of my own presentation, I want to keep people engaged about the issues that we face when it comes to loss adjustment for arson claims and insurance availability.

“Events like this also provide a valuable opportunity for networking and knowledge sharing for loss adjusters and claims professionals,” adds Koeppler, “I think that’s a huge benefit for our industry.”

Find out more about the AICLA/ANZIIF Claims Convention