We are still playing catch up on important developments in the claims industry while we were out the majority of July due to my daughter’s hospitalization and 2 deaths in the family we are sad to have experienced this past month.
Citizens of FL was to make an announcement about adjusting firms selected to work daily (non catastrophe) claims the week of July 8, 2008. Instead, in unbelievable fashion, Citizens posted a cancellation announcement on their website that RFP08-0016 which was the third time adjusting firms had to submit request for proposal documents to Citizens in 2008 for consideration to handle their assignments.
Is what is most interesting is that the Citizens of FL Claim Committee report to the Board of Govenors on 6/18/08 included a recommendation of 30 adjusting firm names they proposed to use on the daily claims beginning in July 2008 and catastrophe claims beginning in June 2009.
The cancellation announcement tells us little other than to watch the website to rebid. We received this information initially from three claim adjusting firm owners who were absolutely shocked as well to find out that their much hard work was again for naught. See notes added after this blog written in last paragraph below updating with Citizens 6/19/09 minutes of the meetings which might give you further clues into the reason for the changes.
While none of us have any details regarding the reasoning, I am curious if the latest cancellation which will require adjusting firms bid yet a 4th time in 2008 to be considered for assignments has anything to do with the Board of Govenors director making an announcement at the June 18, 2008 meeting announcing his resignation as well as the Citizens Task Force on Claims handling issuing it’s final report (yet their site says to watch for an update in August 2008). Watch next week if their notice is accurate that they would have the rebid RFP process announcement up within 30 days which should be next week. The only thing we do not wonder at this time is if it was due to the adjusting firms who bid last time. A review of the 30 firms recommended in the Claims Committee and Board agenda notes linked to below shows some of the largest and most reputable firms in the industry such as Pilot and Crawford which both would have been newcomers to the RFP process and announcements as they were not among the players in the 2007/2008 Cat adjusting firms or daily claim firms leaving us all to wonder….WHAT WAS IT THIS TIME!
Here are links to the various announcements mentioned above:
Citizens notice that they were cancelling for rebid RFP 08-0016:
Board of Governors announcement not only that Chairman Bruce Douglas would be retiring BUT ALSO that the Board members terms all end 7/31/08 and we have yet to see the announcement about who the new Board members will be:
Citizens of FL Task Force Final Report ( watch for another post in the next few days about errors easily spotted in this report when you compare details in the report with Board Claim Committee meeting minutes):
Here is a link to the 6/18/08 Claim Committee Board Meeting notes that contains the list of 30 firms in attachment 3E in the left hand column:
Here is the link to the 6/19/09 Board of Governor’s Meeting notes where you will again see the recommendations for the 30 adjusting firms- look at document 11C for the list in the list on the left side of the page for the list submitted to the Board of Governors:
Here is the notice of July 11, 2008 found in several locations on their website:
You will find it here as well now with the other RFP 08-0016 documents:
It is posted under Current notices as well here:
We will continue to keep you updated since so many independent adjusters and adjusting firms we speak with are interested in this ongoing saga and the plight for their independent adjusting firms who have gone to great expense training adjusting to comply with Citizens training requests for Independent adjusters as well as the cost and time they incurred putting together the past 3 RFP’s for naught.
We are all fortunate that both Hurricane Dolly and TS Edouard missed FL in 2008 to hopefully give Citizens time to get their act together regarding independent adjusters which they have been relying on to handle a very heavy percentage of their assignments. My heart goes out to fellow claim associates who have tried to be patient and comply with all of the Citizens training requests for online and field training classes ( does Citizens not understand Independent adjuster vs employee staff adjuster? )and to my friends and family in FL who we fear will suffer more than necessary in the aftermath of any major storm with the lack of decision making evidenced by the continual posting of RFP’s for independents followed by cancellations LONG AFTER the RFP deadlines for each were given. It is just too hard to believe this could be going on right in the heart of hurricane season in FL. Fortunately, Citizens is to operate off the 2007 list of 46 vendors this cat season but you can just imagine how dedicated those adjusting firms will be with their claim resources versus servicing claims of another carrier they can rely on to make a decision BEFORE they commit their time and resources to their needs. According to this document posted in the upcoming August 7, 2008 meeting agenda notes, they are seeking $9,100,000 in funding for Claim Administration contract fees:
While the task force was designed to review pending claims from the years 2004/2005, Florida needs to do whatever needs to be done to designate a PROACTIVE task force to study the continued problems with the claim handling RFP issues BEFORE it’s too late and a storm hits and a committee at that point can only be REACTIVE after there is a problem. If you agree with this sentiment, you should send a link to this article to the Task Force contacts or your local congressman before you suffer a claim and cannot get service. You will find Task Force members and contact information on their site:
The Citizens Board meeting notes posted on their website are still behind with the last minutes posted for April and the beginning of May so hopefully they will be updated in the future meetings. After beginning this blog entry, I did find that the August 7, 2008 Board of Governors meeting notes do contain the 6/19/08 Claim Committee notes and they show that the Board did approve the list of 30 in the 6/18 and 6/19 links below. Here is a link to the 6/19 meeting notes and you will find the comments on page 12 of 14 of those minutes. So the bottom line is from all reports on their website, they were going to approve the 30 firms. We have no idea why that changed except possibly the comments on a three year committment which differed from RFP 08-0016 service time frames. I guess we will all know what other differences may involved when the new RFP is listed. (Note this first link will move to PAST links after the 8/7 meeting if you are looking for it after that date)
**Update- see 2 comments added for additional information and links