[Editor's Note: The following content is sponsored by Crawford & Company.]
What is the biggest challenge facing the restoration industry? What are the most promising opportunities? And finally, how will increasing natural disasters impact the restoration business?
How are you currently using technology in the restoration process, and what are some of the promising technology trends on the horizon?
James Ryder, Crawford & Company: As a TPA/independent adjuster, we work closely with restoration providers on numerous projects both large and small. They are integral to the claims process in terms of their ability to mobilize rapidly, mitigate damage, and assist in restoring property to a pre-loss condition. As adjusters, our responsibility is to validate that the work being performed is reasonable in terms of both scope and cost, and to ensure that the end user/policyholder and insurers pay only what’s fair and reasonable for services performed.
To that end, some of the promising technologies that we see involve the 360 documentation of projects with DocuSketch and Matterport. We are also seeing companies that provide software programs that can rapidly process restoration invoices and identify costs that deviate from standards, allowing reviewers to quickly focus on cost categories requiring further scrutiny. While still in the early stages of deployment, these tools may allow for insurers and end users to more quickly agree on reasonable project costs and reduce disputes.
What is the biggest challenge facing the restoration industry today?
James Ryder, Crawford & Company: One challenge for the industry, and particularly larger service providers, is developing standards on documentation for the agreed scope of work. The IICRC S500 Standard for Professional Water Damage Restoration gives “standard of care” items to be considered on each project. The interpretation of these standards varies widely, which leads to potential disputes over cost and what is reasonable. The new S550 standard should help address some of these items but compliance with standards remains voluntary.
Where do you think the restoration industry will be in five years? What are some of the biggest opportunities you see over that time?
James Ryder, Crawford & Company: The restoration industry will potentially move toward more of a medical insurance model where pre-approvals and “in network” vendors will be standard for some insurers. Certain end users and insurance carriers are currently establishing pre-approved labor and equipment rates with some of the national/regional providers to help control costs. That trend is likely to continue.
With the number and cost of weather and climate disasters on the rise, what has been the impact on the restoration industry?
James Ryder, Crawford & Company: Industry providers are likely to see more competition as climate-driven events increase demand for restoration services. Also, and with shrinking insurance capacity and increased retentions, end users are likely to absorb more of the cost for restoration services and may look for creative ways (or alternative resources) to help mitigate expenses. K
James Ryder is senior executive general adjuster, global technical services at Crawford & Company. james_ryder@us.crawco.com