Hiring the right public adjusting firm is essential to maximize the size of insurance settlements. In fact, the use of a public adjuster is perhaps the industry’s best kept secret. Industry experts agree that the use of a public adjuster increases the size of client settlements. This is the reason why insurance companies discourage their clients from hiring a public adjusting firm and why they in turn employ teams of adjusters.
To be candid, insurance companies are in business to make as much money as possible for their shareholders. They do this by collecting premiums from their clients and by minimizing the size of what they pay out in the form of settlements.
The following equation outlines how insurance companies make money:
Profit = Earned premium + Investment Income – Incurred Loss – Underwriting Expenses
For insurance companies, good business means maximizing premiums while ensuring that customer claim settlements (incurred losses) are as low as possible.