The insurance claims filing process is an exacting business. One mistake can jeopardize the recovery, costing the lender both time and money. It requires an expert to do the job right and to recover the maximum possible for each claim.
After more than two decades of helping mortgage loan servicers successfully navigate the complicated business of filing hazard insurance claims on real estate collateral, we found that the skillset required for success in that market segment lines up particularly well with what is required to help auto lenders recover losses on their collateral as well.
While there are significant differences in the two segments, there are some commonalities with hazard claims adjustment that extend to the auto finance business.
What are the Differences?
While there has been a great deal of automation built into the mortgage side of the insurance claims adjustment business, with many processes now automated to some degree, the same cannot be said for the auto finance industry.
When a driver is involved in an automobile accident today, the process for filing a claim is still primarily manual, with much of the work being done over the phone, talking to a real person instead of a computer.
Additionally, during the default process, homes don’t tend to move around like vehicles do. The claims filing process gets tricky if the car is moved during the process, and this often happens because the lender is eager to get the vehicle to auction to recover some of the company’s losses.
The Similarities Between the Businesses
In spite of some of the inherent differences between home and auto lending, the set of skills required to succeed in adjusting claims on these two types of collateral are actually very similar, as filing the claims, tracking them and providing accurate reporting are all essential processes.
Most insurance companies insure both homes and automobiles, so we tend to work with the same firms in most cases. Likewise, the people working for these companies, the insurance adjusters, are generally skilled in both sides of the business. Of the roughly 200 professionals on our staff, many have processed both home and auto claims in their careers.
There are also efficiencies to be gained as the technology developed for the hazard claims business can effectively be used to automate more of the workflow for auto claims. While some companies have been slow to take advantage of this, we’ve invested heavily in our platforms to gain these advantages across business lines.
The Benefits of Experience
The reality is that, with both hazard and auto claims, experience matters. Companies with a proven history of working with a wide range of insurance carriers are much better at filing claims on both houses and automobiles, and we’ve worked with nearly all of the nation’s top insurance firms over the years. We have many years of experience helping clients to better navigate the process of filing insurance claims to achieve the maximum return. That experience allows us to know in advance what the insurance companies need to see in order to approve a claim and how to avoid submitting claims that will be rejected.
That experience also allows us to serve our clients every time they call on us and not simply cherry pick the cases that we are sure will easily get approved, as some companies have been known to do. Because of our ability to pursue any claim, our average claim amount may be lower than other companies, but in the aggregate, we recover much more for our clients.
It has been said that trying to be everything to everyone is the surest path to mediocrity in everything; there is a real benefit that comes from specialization. DIMONT is a pure claims adjustment firm; we don’t file claims as a loss leader to get other client business. Adjusting insurance claims for lenders has been our focus for more than twenty years, which is why we’re so successful. This success sets us apart, and it is why we’re capitalizing on our proven expertise in the hazard claims business to also serve our clients’ insurance claims adjustment needs on their auto loans.