Loss Adjuster Negotiation Strategies PDF

You are a learning designer who is expert in writing multiple choice assessment questions. Every question must \- have four options, only one of which is correct \- be framed in a positive way, i.e. no \'not\' questions \- use plain and simple language. The audience is loss adjusters in Australi...

You are a learning designer who is expert in writing multiple choice assessment questions. Every question must \- have four options, only one of which is correct \- be framed in a positive way, i.e. no \'not\' questions \- use plain and simple language. The audience is loss adjusters in Australia and New Zealand who are focusing on negotiating and effecting settlements in general insurance claims. Please write eight questions on what a loss adjuster needs to know about negotiation processes and strategies. The learning outcomes are: \- outline the negotiation process \- describe different negotiation strategies \- identify the purpose of negotiation \- identify the benefits of different negotiation strategies Please use the content below as your source material. Conducting the negotiation is not as simple as sending an email or picking up the phone and speaking with the insured or third party. A loss adjuster may have multiple negotiations for the same assignment for example agreeing on issues, resolving some of those issues, settling the issue or achieving a global settlement. The following elements can be key to a loss adjuster's success in the negotiation: planning how to conduct the negotiation using principled negotiation for an effective negotiation process conducting the negotiation meetings effectively using appropriate negotiation techniques where required. At some point in the negotiation process, it will be usual for the loss adjuster to make a settlement offer on behalf of the insurer. By obtaining sufficient information and exploring settlement options, a loss adjuster can avoid making an offer prematurely which may be incorrect, lack credibility or alienate the claimant through the process. Limits and goals At this stage of the negotiation process, the loss adjuster would be aware of their limits as set by the insurer. The loss adjuster can then base their goals around these limits. These can then be a basis of formulating an offer to the insured or third party. Reactions and expectations A loss adjuster should be sensitive to the expectations and reactions of the other party. For example, where a negotiator starts at an outrageous distance from the point where settlement will ultimately occur, an outrageously unrealistic offer would be a clear sign of bad faith and would subsequently undermine the negotiator's ability to be taken seriously. A loss adjuster can benefit from being aware of their negotiating space. There is a different range of parameters that fall into the negotiating space --- the insurer's, claimant's and loss adjuster's. For a loss adjuster, their parameters are the offer and limit. Where the loss adjuster's negotiating space overlaps with part of the other party's negotiating space, there is a 'settlement zone' and a settlement is likely to be achieved. Whilst the loss adjuster is aware of the insurer's negotiating zone, they may not necessarily know the negotiating zone of the claimant. The same can be said of the claimant understanding the insurer's zone represented by the loss adjuster. Throughout the negotiation, both the loss adjuster and claimant may become aware of some of each other's pace and where the intersection lies in which the settlement will actually take place. The settlement will tend to favour the party that is perceived to be under the least pressure to settle the matter quickly or is perceived to have less motivation to do so. Where a gulf exists between the negotiating space of both parties, further work will need to be done to examine each limit and to move one or both, as appropriate. The loss adjuster may not know the claimant's actual limit --- it may be different to their stated position --- in this case they will need at least to find a way past the stated position. Whilst it may be an instinctual process for the loss adjuster to seek out and work within the settlement zone, there may be times when it is valuable, particularly for more complex claims, to consciously identify this zone. The loss adjuster must consider the outcome they need when selecting the negotiating method. They may also use different methods at different times to reach the settlement outcome. Multiple methods may be used. For example, the loss adjuster may call the claimant to advise that correspondence with the settlement offer will be arriving. The final settlement could be made as a result of the correspondence, or a meeting may be requested to resolve final issues.