About Claims Adjusters
Claims adjusters are the most visible aspect of any insurance company. Adjusters are usually directly involved with policyholders during insurance claims. These people are also the most visible representation of the insurers to other professionals. While most often there is no college degree for adjusters, they are usually licensed and must meet state requirements to continue licensing. How do adjusters obtain licensing? What function do they have in the insurance industry and will this function continue in the future?
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Identification
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Claims adjusters oversee the work required to process insurance claims. An adjuster investigates claims to verify the liability for the insurance provider. Adjusters work alongside professionals that can give expert opinions of a claim. Such experts might include:
• Accountants
• Architects
• Engineers
• Lawyers
• Doctors
Claims adjusters also conduct evaluations of property damage with visual inspections and written statements.
When a claim is considered legitimate, the adjuster will negotiate settlement with the insured. If the claim is denied, the adjuster works with legal professionals to defend the insurance provider.
Function
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The daily functions of a claims adjuster involve many tasks. In any given day the adjuster could be doing any of the following:
• Interviewing claimants and/or witnesses
• Consulting police or professionals
• Seeking records and related information
• Inspecting and assessing damage
• Filing paperwork
• Writing opinions
• Responding to claims
• Communicating with policy holders
• Researching and validating facts and figures
Most often the claims adjuster will be the first, and sometimes single, point of contact policy holders have with insurance providers during a claim. All information needed to resolve the claim will be handled at some point by the adjuster. This can also include payments given to the policy holder.
Types
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There are different classes and types of claims adjusters as well. Some adjusters handle specific claims such as personal injury or property damage, while others known as "Multi-Line" adjusters handle both liability and property claims.
An adjuster can be included in one of three classes:
• Staff adjusters which are employed by insurance providers
• Independent adjusters which are contractors and not employees
• Public adjusters which are employed by the policyholder
While the first two classes of claims adjusters work for the rights of the insurer, the third works solely for the insured.
Considerations
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Because of state regulations, public adjusters are now required to disclose to a claimant whose interest the adjuster is working for. Insurance companies have no such regulation.
Licensing requirements for this type of work are different for each state, with some having few requirements and others mandate a pre-licensing education and exam. Earning a voluntary professional designation, such as one given by the American Institute for Chartered Property Casualty Underwriters (AICPCU), can be used as a substitution or added credit. Florida is one state which has created a specific designation for this type of license, the Accredited Claims Adjuster Designation. This designation allows a person to obtain a license without taking the state exam.
With some state regulations a claims adjuster can work under the license of the insurance company they are employed by. Public adjusters are often expected to meet additional requirements such as file a surety bond. Other requirements for adjusters may include a certain number of continuing education credits per year for license renewal. This can be accomplished by attending classes, publishing in industry publications or giving presentations.
Most colleges have yet to create a certification for claims adjusters. The University of Central Florida is one of a few schools which offer this certification. While this is true, many insurance companies require adjusters to hold a college degree in a related field such as accounting or law.
Potential
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The potential for employment in this field is expected to keep pace with other occupations. Many job openings will occur as adjusters move on to other careers or leave employment. The demand for this type of work will continue to increase as it is not a field given to automation and the population increases both with age and size. Health insurance claims are seen as one area of increased interest.
The most likely candidate to gain entry into this type of work will be someone with one or more of the following advantages:
• College graduates
• Previous related experience
• Related vocational training
For someone with little or no experience, the best opportunity to access this field is by way of employment with insurance providers and advancement from the bottom through training and tenure.
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