After observing several major challenges following fire events, Charles Taylor Adjusting Indonesia created an ebook to help avoid similar problems in the future.

In the aftermath of recent major fire events, staff at Charles Taylor Adjusting Indonesia observed several recurring challenges.

“A significant problem with the recovery process when dealing with backup reinsurers is the complexity and inconsistency, especially when obtaining sufficient documentation,” says Chandra Adiyaksa, the company’s manager of construction and engineering.

“It is primarily due to a lack of communication and coordination between the parties involved that these challenges occur, resulting in delays in claims settlements and increased expenses.

“Furthermore, we found that many stakeholders were ill-informed about the requirements for an effective recovery.”

Reinsurance capacity

In the aftermath of such an event, Adiyaksa says there may be a shortage of reinsurance capacity. Of course, this can make it difficult for the cedant to find backup reinsurers willing to take on the risk. 

“A series of major fire events can put a strain on the financial resources of backup reinsurers,” he says. “This can make them less willing to provide coverage in the future, or they may raise their rates significantly.”

Effective communication is essential in any reinsurance relationship, he adds. “However, communication can break down in the aftermath of a major disaster, as both the cedant and the reinsurer are dealing with a large number of claims and competing priorities.”

As a result of these challenges, and in an attempt to head off similar problems in the future, the team at Charles Taylor Adjusting Indonesia produced the ebook Fire: RCA & Stock Quantification – Ways to Ensure a Smooth Recovery Process from Backup Re-Insurers.

According to Adiyaksa, the goal of the ebook is to provide a structured approach to all parties, to ensure they effectively and efficiently navigate the recovery process.

Right information, right results

The ebook essentially outlines four main ways to ensure a smooth recovery after a major fire event. All are related to clear communication:

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