Loss Adjusting

When a policyholder suffers a loss and makes a claim, the insurance company may need to check the validity of the claim before it is paid.  Insurers also like to reassure customers who have suffered extreme loss that expert help and support is on hand to guide them through the claims and potential restoration process. For this, they may send out an independent loss adjuster.  You will be required to visit policyholders to assess the cause and extent of loss, or damage. Commercial claims, like businesses that are flooded or damaged by fire, will need a loss adjuster to help quantify the loss of income (business interruption) while the business is closed, and other considerations like damaged stock and the cost of building repairs. House fires, floods and burglaries with significant loss are typical for domestic cases. In contested claims, a loss adjuster may also be required to investigate the exact cause of the loss – for instance how a fire started or why a train crashed. It’s an area of work where a strong commercial awareness, diplomacy and careful judgement are all needed. In addition, Chartered Loss Adjusters may be engaged by individuals or businesses to present their claim on their behalf.

Salary

Entry level positions, such as administrative or support roles, start at approximately £15,000 per annum. With the right experience, qualifications and skills you could progress to management roles and earn in excess of £80,000 per annum. This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer. Becoming a Chartered Loss Adjusters presents the opportunity to set up in private practice and running your own company where the rewards can be consistent with any successful business.

• Confirming that the information of the claim is accurate, complete and recorded correctly
• Evaluating the circumstances of the claim to assess if it is valid, including appointing specialist surveys or conducting your own visual inspection
• Meeting policyholders, brokers and insurers
• Explaining the likely outcomes of the claim, processes involved and timescales to the customer, in line with the insurer’s procedures
• Ensuring you have sufficient information to submit the claim to the insurer, requesting missing information or documentation, such as valuation certificates or emergency services reports
• Preparing and sending out the appropriate correspondence and/or documentation within agreed timescales
• Resolving difficulties associated with the claim according to business agreements, legal requirements, market practices and the limit of your authority
• Negotiating settlement of the claim in the client’s and insurer’s best interests
• Arranging interim payments where appropriate and liaising with the insurer’s claims team
• Finalising the claim and advising all interested parties
• Maintaining accurate and complete records
• Investigation of possible fraud
• Providing evidence in court
• Compliance with legal requirements, industry regulations, organisational policies and professional codes

• Exceptional written and verbal communication skills
• Integrity, fairness and consistency
• Efficient and ethical 
• Professional manner and respectful
• Strong customer service ethic
• Administration and IT user skills
• Commercial awareness
• Negotiating and influencing skills 
• Accountable and happy making decisions
• Flexibility, as you may be drafted in to respond to an emergency situation

A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:

• Sound knowledge of the insurance industry
• Procedures for dealing effectively with claims
• How insurance companies, brokers, customer relationship and claims management functions all interlink 
• How to recognise claims that are false or fraudulent
• How policies affect claims procedures

The main route into loss adjusting is through a formal graduate programme or progression from claims management roles. On occasions, opportunities for loss adjusting assistants/administrators may arise, which can be useful entry points.

In order to gain an entry level administrative or trainee position, employers will look for people who have:

• A Levels, Scottish Highers or equivalent qualifications such as  Business, Administration and Finance (BAF) Diploma, BTEC National Diploma, Welsh Baccalaureate (BAC), SVQ Level 3 or Higher National Certificate (SCQF Level 7)

For people without experience or prior knowledge, the Chartered Institute of Loss Adjusters (CILA) has an entry level qualification Cert CILA specifically aimed at providing the knowledge required for handling claims. Additionally, the Foundation Insurance Test (FIT) Award offered by the Chartered Insurance Institute (CII) is a single unit course which requires the candidate to pass a multiple-choice style test which can then lead on to further professional qualifications.

Apprenticeships can be a useful way to gain entry and to progress on in the profession:

• Level 2 Apprenticeship in Providing Financial Services, General Insurance pathway (England, Wales, Scotland and Northern Ireland)
• Level 3 Apprenticeship in Providing Financial Services, General Insurance pathway (England, Wales, Scotland and Northern Ireland)

In order to gain a graduate position, employers usually ask for a 2:2 degree or higher. Although often there is no subject requirement, a business, finance, construction or engineering orientated subject might be more useful in a competitive job market.

Loss adjusters usually follow claims specific professional qualifications offered by the CII and CILA. Professional qualifications undertaken depend on employers and personal abilities, but quite often start at the Certificate level, progressing upwards:

• Cert CILA
• CII Level 3 Certificate in Insurance
• CILA Diploma (due for released in late 2011)
• CII Diploma in Insurance
• CII Advanced Diploma in Insurance, which leads to Associate membership of the CII (ACII)
• Chartered or Certified Status with CILA

Many people acquire the Cert CILA or CII Diploma in Insurance before embarking on CILA Associate qualifications. Entrants to CILA exams must be 21 or over. To progress to CILA Associate and achieve the status of Chartered Loss Adjuster, it is necessary to pass three CILA exams, and the Accreditation for Chartered Status, and gain five years' experience as an independent loss adjuster. If you are working for the insurer, rather than as an independent loss adjuster, you would follow the same route, but apply instead for Accreditation of Certified Status (ACS).

Loss adjusters are employed directly by insurance companies and insurance brokers, by very large risk management teams in public and private companies and by large specialist loss adjusting firms. These firms provide independent claims assessments for insurers, insurance brokers, companies and private individuals, but being independent they represent both the company and the claimant. They often work in specific areas such as IT, business interruption or fine arts. Firms are located throughout the UK. Some experienced loss adjusters are self-employed.

• Chartered Insurance Institute
• Chartered Institute of Loss Adjusters