The Kimberley region in Western Australia is currently experiencing Australia’s latest flooding catastrophe. In response to the repeated rounds of flooding across the east coast during 2022, claims management provider Crawford & Company Australia recently completed a comprehensive review of its operations.
“The east coast floods were the largest catastrophic event in Crawford Australia’s history,” said the firm’s president, Tim Jarman (pictured above). “It’s fair to say that the review we conducted after that catastrophe was probably the deepest and most comprehensive review we have undertaken to date.”
Jarman said the review was driven by the fact that “disastrous weather events” are rapidly increasing, more severe and causing greater destruction than ever before.
“Equally our business is rapidly evolving with greater use of new technology, automated processes, operational process changes, GICOP requirements and our AFSL obligations, as well as changing client requirements,” he said.
Jarman said the 2023 Catastrophe Management report was the result of gathering his firm’s operational and support services personnel from across the country for almost a week of brainstorming in Sydney.
“There was no stone left unturned,” said Jarman. “We looked at our triage process, the use of overseas adjusters, client communications, internal IT support, training of new staff, how we went about recruiting new staff, the list goes on.”
One operational area, he said, that will improve as a result of the review is how overseas loss adjusters are deployed by Crawford when they come to help with a disaster event.
“We had around 60 adjusters from various parts of the world come and spend several months here in Australia,” said Jarman. “We couldn’t have done it without them, but in the wash up, what we did realise is that we are best to deploy them on certain types of claims.”
Jarman said this has nothing to do with the capability of overseas adjusters.
“It was more around efficiency,” he said. “It’s about saying: if the overseas adjusters do these types of claims and our local permanent people look after these other types of claims, then together we are going to move through larger numbers of claims much quicker.”
Jarman described this as a “a key takeaway” from the review.
Another initiative based on the review would involve “smarter use” of Crawford’s global resources overseas while Australia sleeps.
“For future events we are assessing the viability of creating a 24/7 operation which would involve sending a team leader from Australia to manage a team of UK-based Crawford employees working solely on Australian catastrophe claims,” said Jarman. He said that would “significantly help” the firm move through claims more quickly during the catastrophic events that create so many simultaneously.
Jarman also hinted at “more major improvements” at the early stages of handling a claim from digital and tech solutions.
One positive result of the review, he said, was data revealing that his firm’s managed repair arm, Crawford Contractor Connection, was providing quicker responses and completion timeframes compared with major national restoration companies.
“This is certainly a good outcome for us,” he said. “If we can increase use of Contractor Connection, we have better commercial ability to reserve builder capacity following these weather events.”
“Magic happens” says Crawford boss.
Jarman was also impressed by the “brilliant ideas” generated by the review.
“You bring people together and tell them to throw their ideas on the table, magic happens,” he said. “It’s important to take the time and create the space for people to think outside the box because it’s way too easy to just move to the next thing operationally and for these great ideas to never see the light of day.”
Crawford describes itself as the only claims management provider in Australia able to handle a claim from “first notification of loss through to legals where necessary, and everything in between.”
The east coast flooding events that prompted the firm’s review have broken disaster records. This week, CRESTA, the insurance industry organisation that provides data on natural catastrophe industry losses released its fourth quarter update. The update estimated these flood losses at US$4.7 billion and said they were the largest loss event outside the US last year.
“Weather-related catastrophes dominated in 2022,” said the media release.
In WA’s Kimberley region, the Bureau of Meteorology’s (BoM) local manager, James Ashley, told the Guardian that current weather conditions there are “extreme” and “unprecedented.”
Ashley described the flow rate down the local Fitzroy River as one of highest ever seen in Australian rivers. “The amount of water moving down the Fitzroy River in a day is about what Perth uses, water wise, in 20 years,” Ashley told the Guardian.
A striking photo published by the Australian Associated Press (AAP) showed dozens of kangaroos crowded together on a small island, seeking refuge from the rising waters.
On Thursday, Commonwealth Bank (CBA) announced “Emergency Assistance to customers and businesses” in the flood impacted region. Home insurance customers were included in the announcement.
“For customers who have taken out home insurance distributed by CommBank, Hollard can assist with emergency accommodation if your home has been damaged,” said the media release.
Hollard Insurance Partners is the insurer for home insurance distributed by CBA. In September last year, the firm completed its acquisition of CBA’s general insurance business.
