Insurance Professionals Advocate for Proactive Approaches After Wildfires
In the aftermath of destructive wildfires in Southern California, insurance professionals are urging their colleagues to adopt a more proactive stance. They point out that the period following the disasters was often challenging for policyholders.
The chaos caused issues like delayed payments, communication breakdowns, and inadequate coverage. One key issue was that many homeowners believed they had wildfire protection, only to find out they were uninsured when they filed claims.
Joshua Morey, president of The J. Morey Insurance Company, said the situation felt reactive rather than proactive, especially concerning claim handling and payouts. He highlighted the importance of brokers and agents going beyond simply responding to complaints.
However, there was some good news. Legislation passed the prior year required insurers to provide immediate financial aid and upfront living expenses. Also, information was available for policyholders who needed to make demands for coverage.
While insurers are offering initial relief, long-term recovery will take much longer. Debris removal alone could take a year, and the overall insurance response will be tested in the coming months.
Randi Kasongo, president of the Los Angeles chapter of the National African American Insurance Association (NAIAA), called on brokers and agents to take on a much larger educational role. They are the first line of support, so it’s their job to help clients fully understand their policies. She encouraged clients to read their policies thoroughly to ensure they have appropriate coverage.
Brokers and agents also help clients by guiding them through the claims process. Setting realistic expectations about how long things will take helps people get through this disruptive period. Morey also reminded that California has a shortage of adjusters, and people can get frustrated when they’re dealing with many different people.
To improve the process, brokers and agents are urged to take a leadership role in communications. They should stay informed about updates from the California Department of Insurance and understand related programs. This includes engaging in discussions before policies are issued.
Regulatory changes offer some improvement, like allowing policyholders a single point of contact. However, the emergency authorization of non-licensed adjusters still causes worries about the possibility of exploitation. Kasongo emphasized the importance of advocacy, especially for vulnerable communities that can be misled by unqualified adjusters.
Kasongo encouraged brokers and agents to be patient, share their knowledge, and use their influence. They play a significant role as the link between insurance carriers, people, and regulators.
Brokers and agents are urged to make use of their expertise and experience, to provide valuable contributions to their clients. The need for active support and clear guidance is paramount, particularly when helping individuals and families face difficult situations.
