NEWS FLASH: Major industry supplier speaks out on being dropped from insurer panel

NEWS FLASH: Major industry supplier speaks out on being dropped from insurer panel

NEWS FLASH: Major industry supplier speaks out on being dropped from insurer panel Loss adjusting giant Cerno said it is “disappointed” with being taken off QBE’s loss adjusting panel but has vowed to move forward with transforming the company.

Managing director Tony Button acknowledged that the company was disappointed to have been informed that they would no longer be a part of QBE’s panel.

“Obviously it’s not a good outcome for us, but I think it’s also unfortunate for brokers around the country,” he said.
Cerno has an outstanding network of regional offices which brokers will unfortunately no longer have access to.
“At the end of the day what it adds up to is less choice and less competition.

“It’s disappointing, but all we can do is move on and keep pressing forward with transforming our company.
“Our goal is to take the best parts of the traditional loss adjusting process and couple it with independent building and procurement capabilities, and leading collaborative technology.

“The aim is simple – reduce indemnity spend and time frames whilst increasing customer satisfaction and engagement.”

Meanwhile, Cerno Director Don McKenzie has been appointed to the executive role of leading Cerno’s transformation program.

A director since April 2013, McKenzie’s new role will focus on driving the transformation program the company began late last year.

Button said Mr McKenzie’s appointment was a huge boost for Cerno.
“Don has been working extremely closely with Cerno since he became a Director last year,” Mr Button said.

“Coupled with his extensive industry experience, his knowledge of our business makes him the perfect person to drive the critical transformation program we are undertaking.”

McKenzie said the areas he would be focusing on would be product development, client relationships and operational performance.
“Everything we do needs to be about delivering for our clients,” McKenzie said.
“We need to make sure our entire operation has a laser-sharp focus on meeting their needs.
“That’s what I’ll be working on in the coming and weeks and months – a transformation program that delivers an organisation where everyone is pulling together to get the job done for the companies we work for.”

Supporting McKenzie will be Paul Lynch as general manager of the transformation program management office. Lynch was the executive general manager of the Suncorp/Promina Integration and he has also held senior roles in product management and process improvement.

Lynch will be supported by Linda Romano who has extensive change management experience in areas such as contact centres, loss adjusting, home and motor claims, technology as well as sales and client implementations. Linda’s experience extends through Australia, UK and Europe.
 
 
4 Comments
  • Jak 17/02/2014 11:19:23 AM
    ..this announcement looks more like a script from 'Yes Minister'...!

    "...Our goal is to take the best parts of the traditional loss adjusting process and couple it with independent building and procurement capabilities, and leading collaborative technology...The aim is simple – reduce indemnity spend and time frames whilst increasing customer satisfaction and engagement...".
    In this case the customer - QBE - has made a simple choice, and its satisfaction is now no doubt laser-sharp, focused, and complete !
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  • Brooke (Broker) 18/02/2014 10:27:57 AM
    The KODAK of the adjusting world........

    Its interesting to hear the rhetoric and motherhood statements thrown around regarding transformation and change management. New people, new direction, new ideas..........but in truth the same fundamental back end management team that didn't manage change when change was needed, even despite the obvious.

    Cerno has had the same time as other claim professionals in the industry to evolve, transform and demonstrate news ways of delivering value to clients and customers.

    Indemnity spend, cycle time reduction and increased customer satisfaction have been well articulated and voiced as the 3 key industry objectives for improvement over the past 5 yrs.

    Why then has it taken till 2013 for Cerno to recognise it need to undertake a transformation program and align to these changes.

    Cerno can compare itself to Blackberry, Nokia, Boarders Books and more appropriately Kodak...........as companies who where dominant in sectors, saw the obvious change coming but failed to act until it was too late!

    As for broker losing choice because a 'Giant' adjustor was removed from QBE panel, I don't agree. From my personal experience as broker when they is minimal customer focus, constant issues with quality & consistency of communication, I would think that the broader broker community and specifically us will appreciate and applauded QBE's position to improve the claims fulfilment process.

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  • Lisa 25/02/2014 2:05:02 PM
    Brooke, 'ouch'
    What a well directed statement, absolutely nailed it.
    There is no loss of competition when insurers place adjusters on the same fee schedule and there should not be an impact due to less choice if adjusters apply the policy wording.
    Adjusters have been asked for years to prove their value but they have ridden on the back of big insurers not changing their ways as well as tired rhetoric.
    Darwin summed it up - evolve or die.
    The fat lady is in the Cerno green room ready for her performance
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