Heavy rainfall in Tbilisi and other regions of Georgia this summer triggered a large number of insurance claims from insured citizens and businesses alike. Specialists at BE Group, a member of the McLarens network worked at full capacity to ensure that every loss, from damaged buildings to machinery, was assessed as swiftly as possible and to the highest standard.

Many people may not realize that when a flood damages a business or water ruins a building, the extent of the loss is determined by an independent loss adjuster: a specialist who finds out what happened, whether the policy covers the specific incident, and how much should be paid out.

Over July and August, heavy precipitation damaged numerous businesses and residential and commercial properties across Georgia. A disaster of this scale meant loss adjusters had to work at triple capacity so that insurers and policyholders alike could receive fast, flexible and efficient service and claims could be settled as quickly as possible.

BE Group, an insurance loss adjusting company present in the Georgian market since 2019, is a member of McLarens, a leading independent professional insurance services and forensic technical consulting provider with more than 230 offices and operations in over 45 countries around the world. Through its partnership with a global business, the company is building on the knowledge it has accumulated locally and bringing it up to global standards.

“The professionalism, high standards and responsible approach of a loss adjusting company are tested most in the times of crisis and force majeure. The recent floods were exactly such a case. Our adjusters worked at triple capacity on these large-scale losses and showed an exceptional level of mobilization, which truly proved the highest standard. In the end, the claims we assessed went through as smoothly as possible, and both the insurer and its customers received fast, flexible and efficient service,” says Giorgi Barbakadze, Founder and CEO of BE Group.

Recently, BE Group, as a McLarens network member and its official partner in the South Caucasus region, took part in the annual forum of the Federation of European Risk Management Associations (FERMA) in Rotterdam, where around 3,000 risk management professionals gathered to discuss the future of the industry.

The key message of the two-day professional discussion was that risk management, including insurance risk, is becoming even more important in today’s unpredictable and volatile environment, not least as natural catastrophes grow more frequent. In answer to this challenge, the industry’s main pillar is the loss adjusting profession itself and its practitioners, including those in Georgia.

Who Adjusts Insurance Losses in Georgia to McLarens’ Standard

A loss adjuster is neither an employee of the insurance company nor an advocate for the policyholder. Their core task is to deliver an independent, evidence-based assessment.

To put it simply, when a loss occurs and the policyholder notifies the insurer, an independent adjuster is appointed. The adjuster inspects and documents the damage on site, gathers evidence, establishes the cause and circumstances, and verifies coverage, policy terms and limits. They calculate the cost of restoring damaged property or compensating for business interruption, involving specialist experts where necessary. Finally, they prepare a detailed report and advise the insurer on how much should be paid.

Where a loss stems from force majeure, meaning flooding caused by natural events or other damage from heavy rain, as seen in this summer’s floods, the adjuster’s professional experience and approach matter even more. Their conclusions must meet the highest professional standard even under emergency conditions.

The guiding principle for BE Group’s adjusters is the professional standard, underpinned by McLarens’ global experience. Independence and impartiality come first, but evidence and integrity are no less important.

“The July-August natural disasters flooded the inventory of many businesses. We handled a large number of such cases. We went on site, sorted and categorized the stock and differentiated the damage. The point is that water entering a warehouse does not affect all goods equally. Some goods, metal products for example, can survive without problems, while food, pharmaceuticals, paper, textiles, packaged electronics and the like often cannot practically be restored. There were also cases where products could no longer be sold at all because of contamination or quality concerns. Naturally, all of this requires classification and proper record-keeping so that the loss to be paid can be calculated in line with the policy terms. Even though we had to assess a huge number of claims at the same time, we determined within very tight timeframes what had been damaged in a particular stock, what could be salvaged and, ultimately, what compensation was due,” recalls Giorgi Giorgidze, Loss Adjuster at BE Group.

In July and August, heavy rains caused extensive damage in Tbilisi. Residential and commercial properties were affected, warehouses and basements were flooded, and part of Tbilisi International Airport was also inundated. Building loss assessment is one of the most frequent activities of BE Group’s adjusters, particularly in the event of flooding.

“When assessing real estate, surface damage such as wet walls and floors is the most visible, but what an adjuster must really evaluate lies elsewhere: how far the foundation and load-bearing structure were damaged, and whether water penetrated the insulation, the electrical system and the ventilation ducts. For example, water that enters a basement or ground floor continues to damage the building weeks later. Mold, rot and metal corrosion often appear only once the surface dries. That is why a loss adjuster’s job is to look beneath the surface, even under force majeure conditions and even when hundreds of properties need to be assessed. We assess not only the immediate damage but also what damage will develop if repairs do not start in time. The circumstances of the damage are equally important: for example, where the water that damaged the building, its facade or its contents came from, whether it was direct rainfall, sewage backflow or a stream of water accumulated in the street. Every detail matters in establishing correctly what exact loss the policyholder’s plan covers,” explains Mariam Kheloishvili, Loss Adjuster at BE Group.

For commercial properties and businesses, damaged machinery was as common as damage to buildings and stock, and it demands a different approach from the adjuster.

“The biggest risk in assessing damaged business equipment is incorrect handling. A soaked computer, server, electrical panel or piece of production machinery may show no outward signs of damage, yet moisture may be damaging it from the inside. That is why it must be inspected and tested correctly and with extreme caution, since switching it on carelessly can turn even minor existing damage into total failure. In such cases we worked with particular care, carrying out specific inspections and tests. Only then did we assess what could be repaired and what needed replacing. In calculating the loss, we also factor in the cost of restoring damaged parts and components. Another factor to consider is the value of the old equipment, since compensation often depends on depreciation and the policy terms,” says Aleksandre Mgzavridze, Loss Adjuster at BE Group.

The Path from Assessment to Final Report

After the adjuster’s site visit, their findings pass through several further stages and are reviewed by multiple specialists before the final report is produced. BE Group operates a multi-level verification system built on a highly qualified team of professionals. Specifically, the adjuster’s findings undergo expert review. Reporting specialists then align them with the policy terms, while underwriters check the technical side. These are the people who produce the loss assessment report, which both the local and the global insurance sector trust unconditionally.

Natural disasters are, in a sense, a test of how effectively a loss adjuster performs under crisis conditions, and BE Group passed that test successfully. Hundreds of loss adjustments completed across the country bear this out. At the same time, flood or no flood, insurance risks are becoming more complex as the economy and the insurance market grow: energy, construction, logistics and agriculture are all creating new technical challenges. In addition, with climate change, increasingly frequent natural hazards such as heavy precipitation, flooding, landslides and hail will inevitably increase the number of complex claims.

Against this backdrop, insurers and their reinsurers are increasingly turning to the expertise of internationally recognized adjusters. Moreover, fast, efficient and transparent claims assessment is an essential precondition of trust, because attitudes toward insurance products are often formed at the very moment a claim arises.

Through its partnership with McLarens, BE Group and its adjusters have brought more knowledge, better specialists and, looking ahead, better prospects for the loss adjusting profession to the Georgian market and the wider region. The partnership is therefore a foundation not only for business success but also for talent development, as it gives Georgia the chance to become a regional hub of expertise in insurance claims management.