Final answer:
An insurance adjuster represents the insurance company's interests, helping to manage financial risk by ensuring accurate payouts. Insurance companies also save on claims by negotiating lower rates with service providers, thanks to their large number of clients.
Step-by-step explanation:
An insurance adjuster sent by an insurance company typically represents the insurance company's interests. They are tasked with investigating claims, assessing damages, and determining how much the insurance company should pay out based on the policy's terms. Adjusters are employed to help the insurance company manage its risk and financial exposure, ensuring that the payouts for claims are accurate and in line with the policy terms. The concept of coinsurance also plays a role, where the insurance policyholder pays a percentage of a loss, and the insurance company pays the remaining cost. This is part of the insurance company's strategy to mitigate losses and save money while still providing the benefits promised to the insured.
Insurance companies leverage their large client base to negotiate lower rates with health care and other service providers. This results in increased benefits for consumers who become insured and cost savings for the insurance company when claims are paid out, as they do not have to bear the full cost due to negotiated discounts.