.png)
💔 Are You OK? The Silent Burden of Property Insurance Claims
Updated: Nov 2, 2022
“Eventually, we lose a certain spark of optimism, humor and hope. We tire. We aren’t sick, but we aren’t ourselves.”
⚠️ Trigger warning
Death, suicide, and violence are mentioned in brief detail, in relation to property insurance claims
Images of heavily-damaged homes and personal property
Table of Contents
An Introduction
“We feel the feelings of our clients. We experience their fears. We dream their dreams. Eventually, we lose a certain spark of optimism, humor and hope. We tire. We aren’t sick, but we aren’t ourselves.” – C. Figley, 1995
“I wasn't prepared, for that.”
I routinely see a certain level of property loss and destruction in my work as a public insurance adjuster, and in my volunteering for policyholder advocacy. Thankfully, I have formal training in compassion management, from my time in non-profit crisis outreach. However, even with my years of formal training, experience, and exposure to extreme situations and emotional losses, nothing prepared me for the photo, below.
If you regularly read or watch the news, you'll likely have seen hundreds of disaster photos like this over the years:
But you may not have seen one quite like this.
Look at the picture again, focusing on the left of the home.
You may not have noticed this before, but there is an elderly gentleman standing in the corner.
Doug Quinn, director of the United Survivor Disaster Relief, and the American Policyholder Association, took this photo while on deployment for disaster victim outreach with long-time partner and fellow disaster victim and policyholder advocate, Heather Shapter, in late 2021:
“Took this picture down the bayou. House is elevated for a flood, but that doesn’t help for wind. Two walls and all their belonings are gone. We saw many houses like this, some even worse. I didn’t realize until looking at the picture last night that there was an actual person in the house standing on the left side. I don’t notice him because he was frozen in place. This elderly man is probably in shock. Looking at what’s left of his house & belongings, trying to grasp what happened & how does he possibly move forward from here? I know this feeling well, I’ve been there. But it’s different for seniors… Young people can lose everything & shrug it off knowing that they have the rest of their life to get it all back again. What do you do when you’re 70 & don’t have decades of income producing years ahead of you to recover? What do you do when everything you’ve spent your life accumulating vanishes in the wind…your pictures, sentimental keepsakes, family heirlooms? All gone.”
Update, 11/1/22: Read more about Doug and Heather's nonprofit disaster victim outreach.
Imagine how this could affect you if you were exposed to this, regularly, and weren't even aware of the possible psychological effects!
Even if you are not a first party property insurance professional, you likely have experienced something similar, just having gone through the tumultuous, worldwide events of the last three years, triggered by COVID-19.
If you are not familiar with the property insurance industry, here are just a few examples of common losses and stressors that insurance adjusters, contractors, and other professionals may encounter:
It is common in large or catastrophic residential fire losses for beloved family pets to perish, and in some cases, there is loss of human life In the case of pets that didn’t make it out with the family, you will almost always see the outline of the family's pet (usually a dog or cat) on the floor or carpet. Individuals that are 85 and older are at most risk of fire death, and are the most common demographic of fire death victims that I’ve seen in my work, although I have encountered fire deaths involving small children.
Biohazards within property claims Every day, there are professionals that cleanup and mitigate, or visually document and adjust property damage claims involving natural death, suicide, or other violence or accidents, that resulted in loss of life for humans and/or animals. Further details of which, I will spare you of.
Insurance company staff and independent adjusters may experience an overload of assigned claims and policyholder clients The claims department is a service department. While a positive claim experience can certainly contribute to policyholder retention and referrals, it does not directly make an insurance company any money. Before the COVID-19 pandemic, insurers were looking to modernize their claims processes to save on operating costs through automation and digitization, and many large insurers were laying off employees. As insurance companies look to further digitize the claims process by utilizing Artificial Intelligence (AI) within the claims process, and focus on Business Process Outsourcing (BPO) to reduce claim servicing costs, this will inevitably lead to less humans being involved in the claims process. This means that disputes or claim issues that are required to be escalated past automation and AI will likely be placed on a relatively few individuals' shoulders.
Insurance claim dispute resolution and legal proceedings By its nature, dispute resolution can be negative or combative. Negativity bias—and other affects of repeated exposure to negative environments—can coexist with, and contribute to, compassion fatigue. Public adjusters and contractors come in contact with large numbers of policyholders that often do not have the knowledge or the ability to effectively advocate for themselves within an insurance claim. This burden is then transferred by proxy to the professionals working for the policyholder. Insurance company adjusters can also bear this burden, as well as attorneys.
Severe injury or death for professionals on hazardous loss sites, most commonly falling through, or off, roofs Inspecting damaged structures for claims can be dangerous work. At least a few times each year, I see charitable campaigns on social media and networking sites for adjusters and restoration contractors that have fallen off/through a roof. In these cases, it's typically to pay for health care expenses if they have been severely or gravely injured (and at times permanently disabled in some way). Sometimes, it may be for funeral expenses. Often a spouse and children are pictured in the social media posts. This tragic scenario happens more often than the general public may be aware of. When I am on loss inspections with insurance company adjusters and restoration contractors, we all take great care to look out for each other, for safety considerations. We are careful to make sure that conditions are safe before climbing roofs, or entering unstable structures.
Insurance professionals are face to face with many types of property losses, every day. However, many do not realize that they are also exposed to emotional losses, vicariously.
Now that we've covered a few scenarios of where, when, and who compassion fatigue might affect in the first party property claim industry, we will take a look at the definition, and symptoms of compassion fatigue.
The Basics of Compassion Fatigue
The American Institute of Stress explains compassion fatigue in detail:
Also called vicarious traumatization or, secondary traumatization (Figley, 1995). The emotional residue or strain of exposure to working with those suffering from the consequences of traumatic events. It differs from burn-out, but can co-exist. Compassion fatigue can occur due to exposure on one case or can be due to a “cumulative” level of trauma.
Dr. Charles Ray Figley, founder of the Tulane University Traumatology Institute, coined the term compassion fatigue during his research into trauma in the 1980s. Compassion fatigue has been documented among social workers, first responders such as firefighters, law enforcement, and paramedics/EMTs, caregivers, disaster victims, and more.
According to Dr. Figley, “The most insidious aspect of compassion fatigue is that it attacks the very core of what brings helpers into this work: their empathy and compassion for others.”
Symptoms of Compassion Fatigue
Affects many dimensions of your well-being
Nervous system arousal (Sleep disturbance)
Emotional intensity increases
Cognitive ability decreases
Behavior and judgment impaired
Isolation and loss of morale
Depression and PTSD (potentiate)
Loss of self-worth and emotional modulation
Identity, worldview, and spirituality impacted
Beliefs and psychological needs-safety, trust, esteem, intimacy, and control
Loss of hope and meaning=existential despair
Anger toward perpetrators or causal events
The American Bar Association has recognized compassion fatigue as affecting those working in the legal field, resulting in symptoms such as substance abuse as a coping mechanism.
This is supported by a study completed in 2016, titled “The Prevalence of Substance Use and Other Mental Health Concerns Among American Attorneys”.
Considering the vicarious nature of compassion fatigue, it is (in my unscholarly, lay opinion) of paramount importance for individuals that may be affected by this to treat this if it occurs, in order to attempt to avoid it affecting those closest to them. This excerpt from the book Treating Compassion Fatigue (Routledge Psychosocial Stress Series) by Dr. Figley, explains my sentiments:
“A recent book focused on both the secondary traumatic stress and burnout found among modern families (Figley, 1997). Among the conclusions were these: that families both breed and destroy stress among their members and that PTSD spreads in families like a virus unless they have ways to cope.”
The Professionals Weigh In
Curious to see if other professionals in my industry had experienced and/or recognized the prevalence of this in our work, I decided to ask a handful of them about their thoughts on the subject.
I had the great pleasure of meeting with Bill Wilson of InsuranceCommentary.com, and author of When Words Collide via video conference last week. After I asked him about this topic, he gave a brief and thoughtful pause, and started with this:
“We often don't understand the emotional impact of claims." —Bill Wilson
Bill emphasized that property insurance and claims are serious business. He highlighted how the humor often used in insurance company adverts is in stark contrast to the momentous function of property insurance: people losing what matters to them the most, and helping them to financially recover from it, to some extent.
During my most recent podcast guest appearance, similar sentiments were echoed by the podcast's guests, as well as the hosts, Remington Huggins, Esq. of Huggins Law Firm, and Mathew Mulholland of the National Claims Institute.
“People get burnt out in this job pretty easily, [...] after a major event or something catastrophic [...]. Just being told no over, and over again has an effect on your psyche.” —Mathew Mulholland
I interviewed other property insurance professionals about their thoughts on the matter, in depth:
Angela Henderson, CLMP, Public Insurance Adjuster and past Independent Adjuster, The Green PA, Ohio
What do you think contributes to compassion fatigue being so common in our industry?
When you're an independent adjuster, you're typically passionate about what you do and the difference you can make in your work to motivates you. When you received a giant batch of assignments related to a recent catastrophe like a hurricane or tornado, you're ready for the challenge. As an independent adjuster, you see a lot of information online about damages that occur and policyholders that are struggling through their disaster recovery. As a result, when when those claims get assigned to you (especially a fresh batch from the start of the recovery efforts) we are excited to arrive to the staging location and very motivated to be of assistance.
As to why it's common for there to be fatigue in the industry, I don't blame the policyholders or the claims. The amount of micromanagement that adjusters experience from independent staffing firms or directly from carriers is herculean! When a claim is being handled by an independent adjuster, there is often an internal person at the staffing firm that reviews your evaluations before they can be submitted to the insurance company. Many of the independent adjusters I have known have had their claim evaluations from the field pushed back two to three times for revisions based on claims handling guidelines, before their file reviewers will approve them.
Concerningly, the file reviewer is usually a gig (temporary) hire and may not even have any prior experience in the insurance industry, or with property insurance claims. They look at a checklist and confirm whether or not your submission matches the carrier's estimating guidelines. The guidelines are global and not necessarily specific to any of the realities that we field adjusters would encounter for each loss. And, because the file reviewer may also not have the specialized field and professional experience needed to look at the photos and accept the judgment call from the field inspector, you can wind up with emotional fatigue; not for the policyholder but for the process of getting your claims accepted and your fee bills paid.
Independent adjusters must pay out of pocket for the cost of housing, food, gas, and other necessities, and this is often in areas that have become expensive because of widespread damage caused by a natural disaster. When you are required to submit the same paperwork multiple times being asked to tweak the recommendations even after you have provided your most complete feedback, it can be very frustrating.
What tips do you have on avoiding, managing, and recovering from compassion fatigue?
Self-awareness is key to recognizing the start of your fatigue point. In the insurance world, if you are an adjuster, you are constantly working with people in the midst of a crisis. Those difficult situations can lead to "compassion fatigue," when you start to feel overwhelmed and exhausted by your commitments. It's usually hard to notice until it's happened, and it always surprises you. There's a constant reminder in the back of your mind that you have outstanding issues to deal with on behalf of your clients. When someone calls you, it could be a simple question about the claim. Or it could be a person you've been in constant communication with since the moment you received the claim file. When you have trouble closing the file, that minor request can feel like an overwhelming interruption. Pay attention to when you start to feel irritable or overwhelmed.
For me, it tends to settle in anywhere from four to six weeks after beginning an intense field contract when I'm away from loved ones and working too many hours. It becomes difficult to consistently practice emotional balance. Because I know my personal trends and how and when I can be affected, I know that between three to four weeks out I need to take some time off to spend with someone I care about. At that time I also need to taper back on the amount of time I spend working versus the amount of time I spend resting and taking care of my needs. I urge you not to ignore your warning signs, and indulge in denial for the sake of completing your contract faster. Without any downtime you are severe risk for developing compassion fatigue.
If you don't take care of compassion fatigue, it can turn into a full fledged burnout. My worst case of burnout occurred because I was on a long-term contract that lasted more than one year. During that time I did not exercise, was not well hydrated, did not spend time with friends, did not take time off for myself, and the only people I spoke with regularly were associated to my work. I would wake up at 6:00 AM to start work by 7:00 AM, and continue working until 10:00 PM to midnight. Work schedules like this and habits of not taking care of your basic physical and emotional needs are easy to develop in our industry. But they are very difficult to extricate from, especially when you have established a reputation for yourself with your contracting (adjusting) company as being the go-to adjuster. The reliable one that gets everything done. The one that puts in the work in and gets contracts done faster than everyone else. Experienced adjusters that have been through the catastrophe contract process so many times have a routine, and they create the opportunity for themselves to take a step away as often as is necessary. The best way I have found to emotionally heal from the fatigue associated with long events is to stay in close contact with people who love you. People who will spoil you when they see you. People who will cater to you even when they can't be there with you. Many relationships can be negatively affected or end because of an unsupportive partner or family members. Having someone strong in your corner who requires nothing of you but your presence has been my best remedy, and my most motivating reason for enduring.
Doug Quinn, Non-Profit Policyholder Advocate, United Survivors Disaster Relief and American Policyholder Association, New Jersey
What do you think contributes to compassion fatigue being so common in our industry?
There is a natural tendency among those of us who regularly deal with policyholders in a time of loss to become desensitized. When operating in an environment of trauma & loss are part of ones everyday normal, it is difficult to absorb the full depth of suffering felt by victims who are facing it for the first time.
I am The executive director of a nonprofit consumer protection organization; the American Policyholder Association which defends consumers from fraud perpetrated by insurance companies as well as the adjusters and engineers that they hire. I am also the CEO of United Survivors Disaster Relief which focuses on addressing the needs of victims of crisis & trauma in under-resourced areas.
As the survivor of natural disaster & insurer fraud myself, I am perhaps not as susceptible to the same levels of compassion fatigue that others may experience, however it is an issue I have struggled with. Specific symptoms I have experienced are vacillation between oversensitivity and feeling numb/desensitized, trivialization of non-crisis related day-to-day issues, feeling a lack of connection with non-work peers (I hate smalltalk & sometimes resent the naïveté of those around me), and a burning drive to overwork.
What tips do you have on avoiding, managing, and recovering from compassion fatigue?
I think awareness is critical. Being conscious of symptoms & how they impact your ability to function on a high level is key.
If you find yourself feigning empathy when speaking to a victim, versus actually feeling empathetic, it may be symptomatic of compassion fatigue. Because your bar of what is considered “serious” is much higher due to all you experience, the internal rating system where you gauge seriousness can lead one to glossing over losses that others would consider quite devastating.
Self care allows for increased resiliency. Exercise, regular sleep, eating healthy, & enjoying social activities with non-work friends tend to be the first things to go by the wayside in this lifestyle. Restoring those basic practices is incredibly therapeutic & helps reinstate a healthy sense of emotional balance.
Olivia Marraccino, Contents Specialist and Public Insurance Adjuster in training, Digitory Claims, New Jersey
What do you think contributes to compassion fatigue being so common in our industry?
Personally, having the opportunity of being a part of the recovery process serves as a reminder that things can always be worse, and that even through difficult times, you can remind the home owners that although what they went through is traumatic, it can result in a positive outcome.
As public adjusters, we prepare ourselves on how to be compassionate and understand the importance of being empathic to the insured. Also, as we come across a lot of sentimental items in personal property claims while we are on site at these losses, it is intrinsically rewarding to put aside these items for the insured.
On the down side of the initial stages of being on site at these devastating losses, things can make your stomach turn in a matter of seconds. You do get over that feeling and end up
perceiving it as an obstacle you must overcome in order to move ahead. As a content specialist, you are required to be on site taking photo data of homeowner’s personal property throughout their entire home.
Our following step, after are finished with obtaining the onsite photo data, we upload and transcribe the data, and then price research the respective items and proceed with finalization. Clothing is the most tedious but I have to admit, I have come across a lot of uniquely styled clothing, as well as, the unique overall interior design of different houses. This surprisingly presented me with a formulated vision on how I want to design my own house. Gradually, as I experienced a variation of different losses, I understood my overall purpose in building a business within this industry.
What tips do you have on avoiding, managing, and recovering from compassion fatigue?
Balance is essential and we want to make sure we are in the right place within ourselves to
provide them with a sense of security by being attentive and delivering all of our energy, which embodies a lot of positivity, peace, and light.
As we prepare to go visit a loss, we take about 30 minutes to check in within ourselves and overall energy. Prioritizing healthy breaks during the day, taking walks or drives to clear out your head for yourself and for the upcoming homeowner that you will be visiting next.
Caeden Tinklenberg, Public Insurance Adjuster, Swift Public Adjusters, Nebraska
What do you think contributes to compassion fatigue being so common in our industry?
A word that anyone in the insurance industry is constantly exposed to is loss. The word loss imbues negative connotations about something that was possessed and now is not. Property, net worth, financial, surplus. It's a loss and destruction of intangible value as well as physical. No way to get that back. A lot of insurance professionals lose that perspective. Insurance can transfer financial risk and rebuild, but there is no way that we can truly make people whole again, to make things exactly the same. I feel that this is not a perspective that is taken as seriously as it should in the industry as a whole.
When I first became a public insurance adjuster, I expected people (adjusters) to do the right thing when it came to our mutual clients' claims. I expected that when I presented the facts, the policyholder's claim would be approved and allow them to move forward with their restoration and loss recovery. Instead, I quickly encountered answers such as "Ok yes, your argument makes sense, and we have nothing to counter, but we are not going to pay the claim." That creates a moral frustration.
Also, if you are a person that is drawn to this type of work, you might be prone to overthinking and have a habit of getting lost into the minutia. That kills productivity and diminishes mental capacity.
What tips do you have on avoiding, managing, and recovering from compassion fatigue?
Emotional intelligence is key to recognizing the symptoms of compassion fatigue. Pay attention to what you are feeling, when, your actions, and situations you're in and people you interact with. Stay present; don't go on auto-pilot. Observation of yourself and the world around you without judgment is key.
Everyone has their own ways to relieve stress. Any way that you choose must be practical and effective for you. I'm a very handy person, so I repair things around the house. This is one of my hobbies and something that makes me feel relaxed and fulfilled. It's practical, because I can clear my mind for a few hours by focusing on something other than my work. I make sure to get enough sleep, eat well, and take time to be active outside or spend time with family.
Most public adjusters - including myself - are compassionate individuals. As a result, it can be hard to enforce practical limits to services and time, and you may feel like you are abandoning someone if you can't "fix" their problem for them directly. However, you can't be everything to everyone. You are only one person, and every company has limits to the number of clients that they can efficiently serve at any given time. If a claim or issue related to a loss is out of your licensure or scope of services, keep a list of professionals, resources, or organizations that you can refer people to. That way, you can fulfill a need, without taking on a burden.
For teams and companies to avoid workplace stressors from developing into compassion fatigue, I recommend taking the time on the front end to stick to your company's process. Do not rush and do not skip over details, thinking moving faster will mean a better and faster claim turnout. Set clear expectations for policyholders from the beginning of the claim, and properly vet losses and evaluate coverage before taking a claim.
For any company, not having a system to attend to the needs and well-being of its employees can result in high turnover and needless burnout. Owners and managers should focus on developing a supportive and efficient company culture, including employee support and check-ins. No employee should feel pressured to take on extra work, duties, or responsibilities that other employees might choose to neglect. Working in a team environment means everyone pitches in and supports each other.
Resources to Prevent and Treat Compassion Fatigue
Great tips from the Tulane University School of Social Work: How to Address Compassion Fatigue.
Noticing, addressing, and managing compassion fatigue in social workers and other trauma specialists is important. Strategies for preventing and treating compassion fatigue follow.
Prevention
Individuals and organizations can use preventive strategies to reduce the severity of compassion fatigue. These include:
Work-life balance Individuals should make sure they are spending enough time doing leisure activities or connecting with people they care about.
Assertiveness training Organizations can teach those susceptible to compassion fatigue how to set boundaries — that is, when and how to say no to activities that would add stress to an individual’s personal or professional life, making the person feel overextended and inhibiting his or her ability to provide quality care.
Coping skills Individuals can apply coping strategies, including meditation, discussing issues and feelings with colleagues or friends, or adjusting their expectations for themselves or others.
Creative expression Writing, painting, playing an instrument, or practicing other creative arts as an outlet for emotions is a powerful tool.
Nutrition Eating well, staying hydrated, and avoiding too much alcohol, sugar, and caffeine can help individuals reduce anxiety and fatigue, as well as maintain a positive outlook.
Treatment
Compassion fatigue can be treated. Some common methods include:
Journaling Writing down thoughts, emotions, and frustrations can help individuals manage negative feelings and focus on the positive aspects of their work.
Support groups Joining a support group can put those with compassion fatigue in touch with others who have experienced the condition firsthand. Talking through feelings and connecting with others who have shared similar experiences can be a useful coping mechanism.
Counseling The perspective of another professional can help individuals suffering from compassion fatigue develop new ways of coping or implement new treatment methods.
Self-care People with compassion fatigue can refocus by creating better boundaries and making more time for meaningful personal pursuits. Self-care looks different for each person, but many find activities such as exercise, reading, or spending time with friends or family effective means of decompressing.
Other Resources
Crisis help
National Suicide Prevention Lifeline / Nacional de Prevención del Suicidio (United States) Call:1-800-273-8255 , For TTY Users: Use your preferred relay service or dial 711 then 1-800-273-8255 The Lifeline provides 24/7, free and confidential support for people in distress, prevention and crisis resources for you or your loved ones, and best practices for professionals in the United States.
Suicide Prevention Service / Services de crises (Canada) Call: 1-833-456-4566
Support for professionals
Directory of Lawyer Assistance Programs (LAP) American Bar Association: Lawyer Assistance Programs provide confidential services and support to judges, lawyers and law students who are facing substance use disorders or mental health issues. If you or someone you know is in need of assistance, contact your state or local LAP.
Advisory Board's Compassion Fatigue Assessment. Use this tool to help recognize the visible and invisible signs of compassion fatigue, investigate the root causes of compassion fatigue, and seek additional help, if necessary. National Association of Social Workers, podcast: Self-Care and Avoiding Burnout Compassion Fatigue Awareness Project, list of support organizations.
Training for companies and individuals
Crises and Trauma Resource Institute There are many other organizations and companies throughout the US and Canada that specialize in compassion fatigue training for companies and management, which you can find via internet search.
Final Thoughts
I welcome you—and every reader—to provide your solutions, stories, and words of encouragement at the comments section below, for anyone that might need it. Please share this article with anyone that you think could benefit, if not least the Resources section.
Thank you to all of the contributors to this article. As with the topic in general, it is not meant to be addressed alone, but together.
Thank you for reading, and be well. ❤️
