Building Trust and Transparency: A New Era for Restoration Professionals
The restoration industry is facing increasing challenges in working with insurance carriers. In fact, RIA’s 2024 Member Survey indicates that the top 4 frustrations experienced by our members relate to challenges in with the insurance carrier relationship. These include payment delays, breakdowns in communication, and administrative inefficiencies that have created friction, ultimately impacting both restoration contractors and insurers negatively. In response, the Restoration Industry Association (RIA) is taking proactive steps to bridge these gaps and advocate for meaningful reforms that will benefit the entire industry.
I am honored to serve RIA’s members as your advocate for Carrier Relations. Over the past two months, extensive outreach efforts have been conducted, engaging with industry leaders, executives, and stakeholders. These discussions have provided me with valuable insights that are shaping a strategic and collaborative approach to addressing critical concerns and fostering stronger partnerships between restoration professionals and insurance carriers.
Industry Challenges That Demand Attention
Among the most pressing issues consistently raised in these discussions are excessive delays in payment and a lack of effective communication between restoration contractors and insurance adjusters. Reports indicate that payments for commercial claims often take over 100 days, with residential claims averaging more than 80 days. These prolonged delays strain cash flow for contractors while also contributing to increased Loss Adjustment Expenses (LAE) for insurers and diminished customer satisfaction for both parties.
Another concern that is consistently expressed is the expanding role of third-party reviewers in the claims process. While intended to streamline operations, these intermediaries have, in many cases, added complexity and extended the time required for claims to be resolved. This disconnect in the claims process highlights the need for a more structured and transparent system that prioritizes efficiency and fairness.
Beyond these operational challenges, concerns around industry perception have also emerged. A lack of transparency in contracts, documentation issues, and questionable referral fee practices have contributed to mistrust and suspicion from insurance carriers who are adjusting claims. Addressing these issues is essential not only for strengthening relationships with insurers but also for ensuring that restoration professionals operate under a framework of integrity and trust.
A Call for Higher Standards
To foster greater trust and credibility, the RIA is evaluating an updated Code of Ethics that reflects the evolving landscape of the restoration industry. The current code does not sufficiently address some of the current challenges and a more comprehensive ethical framework is needed to promote transparency, accountability, and professionalism. In addition to updating the Code of Ethics, the RIA will be establishing an ethics complaint review process to support compliance and accountability which will reinforce the credibility of RIA members and demonstrate a commitment to industry integrity.
The RIA will collaborate with insurance carriers in the discussion on the revised Code of Ethics to help foster a shared understanding and develop mutually beneficial policies that improve industry relations.
Fostering Stronger Industry Collaboration
While updating ethical guidelines is a critical step, ongoing dialogue between restoration professionals and insurance carriers is essential to achieving long-term improvements. One of the proposed initiatives to facilitate these discussions is a Carrier and Contractor Summit, which would bring together representatives from both sides to address challenges and explore collaborative solutions. We are considering aligning this event with the AGA Networking event in November, stay posted as we work to organize these events.
A Collective Effort for Meaningful Change
As these efforts move forward, the restoration industry is positioning itself to take a more active role in discussions that directly affect its sustainability and growth. With a commitment to transparency, ethical standards, and collaboration, the RIA is working to redefine how restorers and insurers interact—paving the way for a more balanced, fair, and efficient claims process.
For further updates and opportunities to get involved, RIA members need to stay engaged through upcoming communications and industry events. I look forward to engaging with you personally at the RIA International Restoration Convention and Industry Expo, April 28-30th in West Palm Beach Florida. Last year’s event sold out, if you haven’t registered yet, do that right away! Meaningful change begins with a unified voice, and every restoration professional has a role to play in shaping the sustainable future of our industry.