MSC McKay, a 22-year-old motor collision and appraisal consulting company has secured a deal with Amedeo, a chartered loss adjusting firm based in the United Kingdom (UK), that will give the local company a base in new territory, the property insurance market.

Amedeo specialises in catas-trophe loss adjusting.

Under the arrangement it has with MSC McKay, the local company will source clients for the agency and provide support services for Amedeo when its team flies in for assessments.

"In the event of a hurricane or other major catastrophe a team of adjusters from Amedeo will arrive from Scotland to carry out evaluation and assessment work," said Felicity Brandt, chairman and chief executive officer of MSC McKay.

"They would come in the event that there are insufficient char-tered adjusters and property adjusters to handle the level of damage."

Entering new market

For example, a hurricane of category three strength and above would likely require Amedeo to deploy a team, she said.

While the value of the market could not be obtained, the Loss Adjusters Association said that there are currently about 12 to 15 companies operating in the property loss adjusting market, an area that MSC McKay intends to enter early next year, using its new arrangement with Amedeo as its springboard.

"In addition to Amedeo, we intend to recruit early next year, a chartered adjuster to do day to day property loss adjusting," said Brandt.

The services are pending registration with Financial Services Commission, whose approval is pending, but it does not stop the company from doing business.

According to Brandt, MSC McKay controls about 70 per cent to 80 per cent of the motor loss adjusting market which she estimated to be valued at over $150 million.

The company assesses about 5,000 to 6,000 vehicles per month, and it also handles mechanical equipment losses.

Source clients

Its contract with Amedeo is for a 75 per cent to 25 per cent split in favour of Amedeo on jobs secured under the partnership.

"It is potentially a very large value, based on how much work is done, that is, the volume and size of the damage," Brandt explained.

MSC McKay's primary role will be to source clients and provide the ground support, which includes administrative services, such as assistance in getting reports done, office space and transport.

Caribbean arm

Brandt said that Amedeo approached them on the deal about a year ago and since then discussions have been ongoing.

In addition to their UK port-folio, Amedeo Adjusting has exposure throughout the Caribbean.

MSC McKay itself is in expansion mode and will open a branch in Westmoreland and a sub-office in Hanover this year, representing an investment of $7 million to $8 million.

The company, which employs 65 staff, currently operates in six locations: Kingston, Portmore, May Pen, Montego Bay, Mande-ville and Ocho Rios.

Going forward, MSC McKay hopes to enter the Caribbean and, through joint ventures, into the wider overseas market.

sabrina,gordon@gleanerjm.com

Taken from the Financial Gleaner, Friday June 20, 2008.