Farmers Adjusters Allege Workload Issues in Letter to Regulators

Farmers Insurance is addressing concerns following an anonymous letter from in-house adjusters alleging severe understaffing and overworking issues. The letter, dated May 14 and sent to Farmers and insurance regulators in Tennessee, Alabama, and Georgia, claims that current working conditions contradict the company’s core values of customer focus, professionalism, and integrity.

The Tennessee Department of Commerce and Insurance acknowledged receipt of the letter but declined to comment further on potential investigations. Farmers responded by stating they are engaging with local team members to promote open dialogue and transparency regarding workplace matters.

The letter accuses Farmers of mismanaging claims due to severe staffing problems, exacerbated by the acquisition of MetLife’s auto and home subsidiary, Metropolitan Property & Casualty Insurance, which significantly increased claims without providing adequate training on Metropolitan systems or claims processing. Additionally, the adjusters noted that Farmers laid off about 2,400 workers, or 11% of its workforce, in 2023, following the departure of several seasoned managers.

The anonymous group described an untenable work environment, with unmanageable duties and expectations harming employees’ health and well-being. They also cited a failure to manage claim counts and workloads as a significant sign of negligence, causing heightened tension and stress.

Former Farmers adjuster Shaun Markwardt, who worked for the company from 2007 to 2015 and is now a public adjuster in Knoxville, Tennessee, corroborated the claims, stating that the company overworks its employees. He noted that during his tenure, adjusters were often expected to work long hours without overtime pay after a shift from hourly wages to salaried positions. Despite this, Markwardt also mentioned that he had positive experiences with good mentorship from supervisors at Farmers.

The anonymous adjusters demanded several actions from Farmers, including hiring more claims staff, devising retention programs for veteran adjusters, conducting comprehensive assessments of workloads, complying with federal occupational safety guidelines on worker fatigue, and allowing more time for continuing education courses.

Farmers is also dealing with other challenges, including a lawsuit filed by a California prosecutor alleging systematic underinsurance of homes in violation of state regulations. Additionally, Farmers faced backlash from policyholders after halting new homeowners and auto business in Florida and California, with a similar planned withdrawal in Georgia being disallowed by the state insurance commissioner for not following required regulations.

The company is attempting to address these issues while maintaining its commitment to customer service and regulatory compliance amidst growing scrutiny from employees and regulators alike.