A Nation Of Claims: Exploring The Vast Network Of Independent Insurance Adjusters In The Us

The United States is home to a multitude of independent insurance adjusters, who play a crucial role in the claims process. These professionals are not directly employed by insurance companies but are hired when a claim is made, providing third-party objectivity and fairness to the process. While the exact number of independent insurance adjusters in the US is challenging to pinpoint, there are numerous firms and associations dedicated to this line of work.

The National Association of Independent Insurance Adjusters (NAIIA), for instance, is a prominent organisation with members spread across the country. Their role is to facilitate relationship-building and networking among firms offering similar services to the insurance industry.

The work of independent insurance adjusters is indispensable, as they serve as intermediaries between insurance companies and policyholders. They investigate, analyse, and evaluate insurance claims, determine liability, and work towards fair settlements for all involved parties.

With billions of dollars in claims handled annually by independent adjusters, the industry is undoubtedly significant in the US.

Independent adjusters handle billions in claims annually

Independent adjusters handle billions of dollars in claims annually, and billions of dollars in payouts to claimants. A 2017 survey by the Association of Claims Professionals (ACP) found that third-party claims adjusters handle approximately 3.5 million new claims each year, with a total value of around $45 billion.

Independent adjusters are not directly employed by an insurance company but are hired by an insurer when a claim is made. They are typically self-employed independent contractors or employees of a claims-handling company. They are tasked with evaluating insurance claims to determine the insurance company's liability under the terms of an owner's policy. They work on behalf of the insurer by investigating, analyzing, and evaluating insurance claims; determining liability; and working to provide fair settlements between all the parties involved.

The ACP survey also revealed that there are over 125,000 active claims professionals in the United States. Large insurance companies have the largest number of adjusters in-house, accounting for roughly 70% of the overall adjuster population, while national third-party claims adjusters account for 23% and regional adjusting firms 7%.

The demand for independent adjusters can fluctuate depending on factors such as the volume of claims and the occurrence of natural disasters. During times of high claims volume, such as after a natural disaster, the number of claims can surge, and independent adjusters may be in high demand. For example, in the aftermath of Hurricane Irma in Florida, recent college graduate Brett Brown worked as an independent adjuster, earning over $60,000 in less than two months.

Overall, independent adjusters play a crucial role in the insurance industry, handling a significant volume of claims and payouts each year, and providing valuable expertise and objectivity in the claims resolution process.

They are intermediaries between insurance companies and policyholders

Independent insurance adjusters (IIAs) are professionals who act as intermediaries between insurance companies and policyholders. They work on behalf of the insurer by investigating, analysing, and evaluating insurance claims; determining liability; and working to provide fair settlements between all the parties involved.

The adjuster's primary responsibility is to review and assess the circumstances surrounding an insurance claim to determine accountability and damages. This involves an in-depth understanding of policy language and construction, as well as local and state laws. For example, in cases of property losses, adjusters visit the site, gather evidence, take photos, and verify documents like repair estimates. When claims involve physical injuries, adjusters collect medical reports and other relevant records to determine the extent of injuries.

Independent adjusters are not directly employed by an insurance company but are hired when a claim is made, providing third-party objectivity and fairness to claimants. They can work as independent contractors or employees of a claims-handling company.

There are two types of insurance intermediaries: insurance agents and insurance brokers. Agents are authorised to solicit and procure insurance business for the company they represent and can be either independent or employed. Independent agents represent multiple insurance companies and earn commissions, while employed agents work exclusively for one insurer and receive a basic salary plus commissions. Brokers, on the other hand, exclusively represent the insured person and search for the best coverage across multiple insurance companies. They can be individuals or companies and work on a commission basis.

Independent adjusters are not direct employees of the insurer

An independent insurance adjuster is not directly employed by an insurance company but is hired by an insurer when a claim is made. They are considered independent because they are often employed by a third-party company that specialises in insurance claims.

Independent adjusters are typically hired because there is a high volume of claims, usually following natural disasters such as hurricanes, earthquakes, or floods. They can also be used in remote or highly specialised areas, such as damage caused by a rare animal. In some cases, the rules of a particular state or the provisions of a specific insurance contract will mandate the use of an independent adjuster.

Independent adjusters are usually contracted by a third-party claims-handling company, or "independent adjusting firm". These adjusters are employed by the firm but operate as representatives of the insurance company. They are usually hired as W-2 employees, but some smaller employers may contract claims out to independent contractors.

Independent adjusters are professionals who serve as intermediaries between insurance companies and policyholders. They work on behalf of the insurer by investigating, analysing, and evaluating insurance claims; determining liability; and working to provide fair settlements between all the parties involved. They do not represent the homeowner but the insurance company. If a homeowner requires their own representation, a public adjuster might be the best option.

In the US, insurance departments in almost all states license three different kinds of adjusters: company, independent, and public. Company adjusters are full-time employees of an insurance company, while independent adjusters are hired on a contract basis. Public adjusters are hired by the insured to assist in the preparation, presentation, and settlement of the claim.

They are self-employed contractors or work for a claims-handling company

Independent insurance adjusters are self-employed contractors or work for a claims-handling company. They are hired by insurance companies when there is a high volume of claims, or for their specific expertise. They are also hired when insurance companies do not have the human resources to manage the workload.

Independent adjusters are hired by a third-party claims-handling company, or "Independent Adjusting Firm", and operate as representatives of the insurance company. They are usually contracted by a lot of different insurers and can handle claims for different insurers for the same storm.

Independent adjusters are required to comply with the license requirements of the state in which they perform their work. They can work as 1099 independent contractors or W-2 employees.

The number of auto claims adjuster positions is projected to decline by around 8% from 2010 to 2020. However, there were 349,400 claims adjuster jobs in the United States as of 2024, and from 2020-2030 over 25,000 jobs are expected to become available each year.

Independent adjusters must comply with state licensing requirements

Independent insurance adjusters are professionals who act as intermediaries between insurance companies and policyholders. They work on behalf of the insurer by investigating, analysing, and evaluating insurance claims; determining liability; and working to provide fair settlements between all the parties involved.

In the US, independent adjusters must comply with state licensing requirements. However, these requirements vary from state to state. While some states require adjusters to be licensed, others do not. As of 2018, 34 states require independent adjusters to be licensed, while 15 require staff adjusters to be licensed.

For states that mandate licensing, independent adjusters must typically complete a few steps to obtain their license. These steps often include purchasing and completing an exam prep or pre-licensing course, applying to the state, and paying various fees. The cost of obtaining a license can range from less than $100 to several hundred dollars.

Some states also have specific requirements for the type of license that is needed. For example, some states offer an \"All Lines Adjuster License\" that allows adjusters to handle any type of claim. Additionally, certain states require adjusters to have a designated home state, especially if they plan to work across multiple states.

It is important for independent adjusters to be familiar with the specific licensing requirements of the state in which they intend to practice. Non-compliance with these requirements can result in negative consequences, such as an inability to obtain work or legal penalties.

Frequently asked questions