Moore: Workers' Comp Adjuster Turnover

Friday, July 30, 2021 | 0

I do not like to write any articles on how the pandemic has affected anything, but a workers' comp adjuster turnover trend spiked in early 2020.

James Moore

When I wear my workers' comp consultant hat, I often review claims for carriers, agencies, employers and other organizations.

One of the hallmarks of a good claims resolution involves having the same adjuster throughout a claim. Claims adjusters can operate from memory on a claim they have handled since day one.

When I was adjusting claims (long ago), I would dread taking over claims that were started by another adjuster who left for greener pastures.

Taking over a claim when a claims department has suffered any workers' comp adjuster turnover compares to watching a movie starting somewhere in the middle. You can understand what the movie is about, but the plot holes are numerous while viewing it.  Then you realize later that you do not have the time to watch the movie from the beginning. So goes the handling of a claim.

Having numerous adjusters on a file compares to many people watching parts of a movie. The last person is supposed to know the whole movie, which just does not happen.

Most supervisors will respond; that is why we have claim status reports. Many times, though, the adjusters on their way out the door copy the prior statuses with little or no updates.

Workers' comp, or adjusters of any line of insurance such as liability, auto, property, etc., have always experienced turnover. Adjusting claims remains a high-pressure business from even long ago.

Moving up the corporate ladder was recommended to me by a mentor over 25 years ago. That advice worked for me.

The level of turnover that has occurred since early 2020 looks to be a larger trend than in earlier years. Most of the adjusters that I have spoken with seem to have either drawn unemployment benefits known as “couch cash” or found another higher-paying job at another employer, not always a claims adjusting gig.

Most adjusters started working from home. Applying for other positions becomes easier when one is already on the computer all day. LinkedIn would be one of the most popular avenues for recruiting adjusters.

The brain drain concern turns into experience deficit

When I attended a conference as a reporter, one carrier was very concerned about the brain drain occurring in insurance, just not workers' comp claims. The presenter covered workers' comp adjuster turnover and millennial recruitment. One could hear the concern in her voice.

I noticed the experience deficit when reviewing loss runs. Over the last 18 months, the adjuster names changed almost every time I received a loss run to review for a client.  The new adjuster often had much less experience than the prior adjuster.

No blame on carriers or third-party administrators will be placed in this article. The purpose is to point out a workers' comp adjuster turnover trend. The solution escapes me at this point as it has most of the insurance community.

This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at www.cutcompcosts.com.