As someone who’s spent years in property appraisal and arbitration at Crawford, I’ve seen firsthand how our industry is evolving. Every week, my team and I tackle disputes that shape the future of insurance claims in Canada. Our property appraisal group is, at its core, a dispute resolution team. We handle disputes between insurers and policyholders, presenting cases before an umpire whose decision is binding everywhere in Canada, excluding Manitoba. With 14 team members, we operate nationwide and manage several ADR/appraisals per week.
Our work spans residential, commercial and complex claims, including large condo losses and business interruption cases. Crawford handles a significant percentage of all appraisals in Canada, and our national reach sets us apart.
Recently, we handled a dispute involving a high-rise condominium in Toronto. The initial loss estimates from both sides were millions of dollars apart. By invoking the appraisal clause early, we avoided months of litigation and potentially hundreds of thousands of dollars of legal fees. The umpire’s decision was binding and both parties accepted the outcome. This not only saved time and legal costs but also preserved relationships, a win for everyone involved.
While most of my anecdotes come directly from my work at Crawford, I also keep a close eye on industry developments and notable cases across Canada. A memorable case involved a hotel fire in rural Ontario. Before the owner even contacted their insurer, public adjusters from across Canada and the U.S. were on the scene, offering their services. The owner, overwhelmed and anxious, hired a public adjuster who negotiated a deal for a percentage of the settlement. The independent adjuster from the insurer arrived to find the situation already complicated. The involvement of public adjusters made the claim more adversarial and required extra diligence and documentation from the appraisal team to ensure a fair outcome. This is a growing trend, public adjusters often complicate claims, but with careful process management, efficient, impartial resolutions are still possible.
In another recent case, a homeowner’s property was destroyed by fire. The insurer and the insured couldn’t agree on the quantum of payment so they proceeded to appraisal. Each party appointed an appraiser and a neutral umpire was brought in. The umpire’s decision was final and the insured was awarded less than what was claimed but accepted the outcome. The process provided a clear, binding resolution without the need for prolonged litigation. This is a great example of how appraisal streamlines dispute resolution and brings closure to complex claims.
I continue to see the trend that ADR/appraisal is becoming the preferred method for resolving insurance disputes, with more cases handled domestically each year. Technology is playing a bigger role, with appraisers using automated valuation models, drones, and cloud-based analytics to improve accuracy and speed.
Another trend that I’ve noticed is the growing influence of public adjusters. In my experience, files involving public adjusters require extra diligence and documentation. Regulatory differences across provinces add another layer of complexity, but our team’s expertise helps us navigate these challenges.
Best practices and lessons learned
I’ve found that diverting problematic files to our group early saves significant time and resources. Clear documentation is essential, distinguishing between items observed by adjusters and those reported by insureds helps ensure accurate loss assessments. We’re also working to improve collaboration with adjusters and considering outsourcing estimation tasks for better defensibility.
The demand for impartial, efficient arbitration is only increasing. By staying adaptable and focused on best practices, we’re ready to meet the challenges ahead.
