What’s “loss adjusting” (and how’s it related to the investigation industry)?
Picture this: A large insurance company receives a claim from a client who has suffered a significant loss due to a fire at their business premises. How does the insurance company determine the extent of the damage and the appropriate compensation?
And how do they know it’s fair dinkum?
That’s where a loss adjuster steps in.
What exactly is a Loss Adjuster?
A loss adjuster is essentially an insurance professional who investigates and assesses insurance claims on behalf of insurance companies. Their primary role is to evaluate the extent of financial loss or damage and calculate the appropriate settlement (if accepted) for the policyholder. Think of them as the Sherlock Holmes of the insurance world, armed with a keen eye for detail, analytical skills, and the ability to piece together a comprehensive picture of the loss or damage.
In terms of what they do, they’re responsible for a wide array of tasks, which can vary depending on the nature of the claim and the industry they specialise in. From large industrial incidents, fires and damage, to property damage caused by natural disasters or accidents, loss adjusters face diverse challenges in their day-to-day work.
What would I actually do?
Loss adjusters are natural-born investigators. They meticulously examine the facts and circumstances surrounding a claim, gathering evidence, interviewing witnesses, and collaborating with experts, such as forensic specialists or engineers. They’ll often work with the police, Coroner, fire and fraud investigators, but from a civil point of view. Their aim is to determine the cause, extent, and validity of the claimed loss or damage.
Using their expertise, loss adjusters evaluate the financial impact of the loss or damage. They assess property values, analyse repair or replacement costs, and calculate depreciation to arrive at a fair settlement amount. Their meticulous calculations ensure that policyholders receive appropriate compensation in line with their insurance coverage. Or not, if the claim is not accepted!
They also review insurance policies to identify coverage limits, exclusions, and any other relevant terms. They analyse the claim against these policy provisions, ensuring that the claim aligns with the terms of the insurance agreement.
There’s quite a lot of opportunity for these roles in Australia. Upon looking on www.seek.com, there were around 250 jobs on the current market. Whether you’re a seasoned professional looking for a new challenge or a fresh graduate eager to enter the field, there are numerous avenues to explore.
You’re typically required to hold a license issued by the Australian Securities and Investments Commission (ASIC) or a relevant regulatory body. This license ensures that loss adjusters meet the necessary qualifications and standards to conduct their work. It’s common for aspiring loss adjusters to hold a degree in fields such as insurance, business, finance, or a related discipline. Additionally, undertaking professional development courses or obtaining relevant certifications, such as a Diploma of Loss Adjusting, can enhance your skills and employability in the field.
Being a successful loss adjuster requires more than just knowledge and qualifications. It demands a unique set of skills, including:
Attention to Detail: Loss adjusters must have an eagle eye for detail, capable of spotting even the tiniest clue that may impact the outcome of a claim.
Analytical Ability: They must possess strong analytical skills to assess and interpret complex information, data, and policy provisions accurately.
Communication and Negotiation Skills: Effective communication is key. Loss adjusters must have the ability to explain complex concepts to clients and negotiate settlements that are fair to all parties involved.
Want to learn more about loss adjusters? Reach out to the team here!