Casualty Actuarial Society (CAS) Practice Exam

What might insurers utilize independent adjusters for?

1. Only for low-value claims

2. To manage claims for specialized needs or when their staff is busy

3. As primary representatives for all claims

4. Only in field inspections

The correct answer is: To manage claims for specialized needs or when their staff is busy

Insurers often utilize independent adjusters to manage claims that require specialized expertise or when their internal staff is overwhelmed with the volume of claims. Independent adjusters bring a level of objectivity and can provide insights that an insurer’s internal staff may not possess, particularly for unique or complex claims that require specific industry knowledge. This flexibility allows insurers to efficiently handle their claims processes without overburdening their in-house resources. Using independent adjusters enables insurers to maintain efficiency and manage varying workloads effectively, especially during peak times or in the aftermath of catastrophic events. This strategic approach ensures that all claims are handled promptly while also tapping into specialized knowledge when necessary, thus improving overall customer service and satisfaction.