When unprecedented events challenge insurers, timely and effective collaboration becomes paramount. This narrative of RENFROE and De Smet Farm Mutual in the aftermath of a historically significant Derecho event in the Midwest in May 2022 demonstrates the power of such collaborations.
The Event
On May 12, 2022, a potent severe thunderstorm system developed in central Nebraska and advanced northeastward across South Dakota. The line of storms eventually formed into a Derecho, a widespread line of intense, fast-moving, and long-lived straight-line wind storms.
This powerful weather event generated winds exceeding 100 miles per hour and broke the highest number of single-day records for significant wind speeds in U.S. history. The storm spun up 34 tornadoes across its path, including 19 in South Dakota.
“This was an enormous, widespread catastrophic event that impacted a significant percentage of our policyholders,” Steve Schlechter, a key figure at South Dakota-based De Smet Farm Mutual, recalls.
The Call
“The volume of claims was significantly more than our staff field adjusters could manage in a timely manner," Schlechter said. "So, I immediately started to search for independent adjusting firms to assist.”
Previously unfamiliar with RENFROE, Schlechter discovered the claims services firm’s website through an internet search and submitted a request for a response. Mark Jensen, RENFROE’s business development manager, responded swiftly.
“I got a notification that a request had been submitted online,” Jensen said. “As soon as I read it, I knew we had a great opportunity to help. I called our claims operations leadership and said, ‘We need to call these folks right away.’”
Jason Wilson, Director of Claims Services at RENFROE, was on a business trip when he and Jensen made the call to Schlechter.
“Steve told me that a Derecho had impacted the eastern third of South Dakota and that they needed assistance handling approximately 1500 claims,” Wilson said. “We briefly discussed the type of response we could provide, and at that point, Steve said he felt that we would be a good fit.”
According to Schlechter, De Smet had never used the services of an independent adjusting firm before and wasn’t sure what to expect.
“They did an excellent job of walking us through their process and answering all of our questions,” Schlechter recalls.
Wilson and Jensen explained the next steps to him and then got to work.
The Response
Despite being engaged in quarterly strategic planning meetings with colleagues, Wilson quickly mobilized his team. With no pre-existing agreement or relationship, the commitment from RENFROE was unquestionable.
“By the end of that day, RENFROE had provided me with a fee schedule, sample estimate, statement of loss, and work agreement,” Schlechter said.
From there, RENFROE's operational response was equally impressive. The company’s logistics machine sprang into action, and within 72 hours, its first adjusters arrived in South Dakota.
“The time that it took for RENFROE to mobilize and begin operations was impressive,” Schlechter said.
Gerrad Brigham, President of RENFROE, recalls the scenario:
"Their main question was how many adjusters could we provide them and how quickly. However, after learning that De Smet had never used independent adjusters in their company's history, our operations team immediately began working with De Smet leadership to design an efficient process to receive, assign, inspect, and complete their claims."
In a period when the insurance industry was reeling under high demand and when many firms were reportedly "too busy" or "stretched too thin," RENFROE stood out. Within just a few days, the company had assembled a fully functioning claims team that seamlessly integrated with De Smet's workflow, upholding the customer service expectations that De Smet's policyholders had come to expect.
Andrew Guffin, Director of Workforce Development for RENFROE, recalls the back-end action:
"We had to set De Smet up in our systems quickly to begin the process of deploying adjusters to South Dakota and getting claims triaged and assigned. We trained our staffing coordinators to address some of De Smet’s unique requirements with the adjusters that they were contacting for the deployment. Additionally, our compliance team had to work with the South Dakota Department of Insurance to ensure all license requirements were met."
Over the next five months, this meticulously organized team of 23 adjusters and 11 file reviewers, led by two of RENFROE's most experienced managers, successfully handled 1,430 claims for De Smet.
Guffin praises RENFROE's workforce for its agility. "We make things happen quickly in light of the pressing needs that catastrophe events create,” he said.
The Results
Despite the novelty of the collaboration and the need for more detailed information at the onset, RENFROE showcased incredible speed and efficiency. Some of the most notable outcomes include:
- RENFROE adjusters contacted De Smet policyholders within an average of 0.7 days
- Inspections occurred within 4.9 days on average
- Comprehensive inspection reports and estimates were returned to the carrier and their insured within 6.2 days on average.
Wilson considers this a remarkable achievement, given that RENFROE was unfamiliar with De Smet’s workflows and processes when the project started.
”The speed at which both teams integrated and started working cohesively is a testament to the agility and commitment of every individual involved,” Wilson said. “Within days of that phone call, we were not just a vendor to De Smet, we were their partner.”
The successful partnership between RENFROE and De Smet showcases the strength of well-coordinated efforts and rapid response in a crisis. It underlines RENFROE's unwavering dedication to exceptional service, reinforcing its standing as one of the leading independent adjusting firms in the country. RENFROE's ability to swiftly respond to extraordinary situations makes it a trusted partner for carriers of all sizes seeking help to service their claims.
“RENFROE supplied much-needed relief for our staff field adjusters and provided our policyholders with the timely claims service that they are accustomed to receiving,” Schlechter said. “I would absolutely call on their help again if needed.”
