Claims Mitigation
The goal of effective jewelry claims mitigation is to accurately and properly settle a claim while avoiding needless overpayment
JCRS’ independent analysis of carrier claims audits indicate that most companies consistently overpay jewelry claims by upward of 40 percent. How can this happen?
To properly insure jewelry in the first place, agents, underwriters, and carriers must rely on various pieces of information about the item being insured. That information, which originates from various jewelry industry sources, needs to be accurate, complete, and reliable. Because the claims process is at the end of a chain of other insurance events, it is affected by the information that is collected at the beginning of the insurance cycle. Thus, claims settlements are only as good as the information on which they are based.
Not all jewelry information and sources are the same. Unlike the insurance industry, the jewelry industry in unregulated and “governed” by various groups and organizations, each with their own agendas. The jewelry industry lives by caveat emptor “buyer beware.”
The information about a piece of jewelry is only as good as the documentation and integrity of those who stand behind the item sold. Furthermore, the limit of liability for jewelry is usually based on the valuation. Thus, to a large extent, both the jewelry customer (when purchasing) and the insurer are at the mercy of the jewelry industry. If the information about the item sold is incomplete, inaccurate, questionable, or unreliable, the insurer cannot properly underwrite the item.
That puts both the insurer and the insurance customer on tenuous ground. Should the insured need to file a claim against the item’s loss or damage, the accuracy of the settlement amount may also be questionable and could lead to a loss of customer satisfaction and good will.
The problem with insuring jewelry is further compounded in valued contracts, a practice that can put insurers at great risk. Ill-informed insurers, who write valued contracts based on what may be a bogus appraisal, are especially prone to needlessly overpay claims settlements.
JCRS’ is your objective insurance industry source for fair and accurate settlements. Because we are insurance professionals, not jewelers, we have no vested interest in profiting from a potential replacement for a jewelry loss. Our fee-based services are up front and visible, not hidden within a so-called free service where numbers can easily be manipulated.
JCRS offers an effective outsource solution for claims mitigation. Most insurers do not have the core competency to properly train their in-house staff to settle losses effectively. Furthermore, adjusters should not have to guess at who is qualified to service the loss. As the developer of the industry’s ACORD Jewelry Standard and Forms, JCRS knows what kinds of information insurers need to properly insure and underwrite jewelry, as well as to effectively resolve claims and reduce settlement costs. We are a proven resource.
Let JCRS show you how to reduce settlement costs and avoid overpayment of claims. For example, simply fax us the paperwork related to a jewelry claim. We will evaluate the loss, prepare the adjustment reports, and provide the appropriate documents and assistance for settling the claim. Our settlement figures are realistic and verifiable. Our mitigation service is especially helpful for insurers who have limited jewelry claim frequencies
Or, if your needs are larger and you would prefer to manage the process in-house, consider our easy-to-use Loss Estimating Software solutions. Either way, you benefit by basing settlements on accurate and reliable information from experienced insurance professionals who are jewelry and jewelry insurance experts as well. Contact us for details.
While JCRS can provide for replacements you may want to go ahead and use your current replacement vendors — after JCRS has established an independent, reasonable base-line valuation.
All partial losses (lost earrings, chipped stones, etc) should be scrutinized
by JCRS’ lab run by Graduate Gemologists who are Certified Insurance
Appraisers. Our salvage service
consistently provides savings for the insurer.