Unraveling The Path To Becoming An Insurance Adjuster In Malaysia

Becoming an insurance adjuster in Malaysia can be a good career choice for those with the necessary skills and work ethic. The role involves assessing and evaluating insurance claims, investigating the validity of claims made by policyholders, and determining appropriate compensation.

To become an insurance adjuster in Malaysia, you must follow these steps:

1. Obtain a degree in a relevant field such as law, engineering, or accounting.

2. Gain relevant work experience in the insurance industry, preferably in claims handling or underwriting.

3. Complete a professional certification program in claims management or loss adjusting.

4. Apply for a license from the Central Bank of Malaysia to work as an adjuster.

5. Once licensed, you can work for an insurance company or as an independent adjuster.

6. Continuously update your knowledge and skills through ongoing professional development.

Earn a degree in a relevant field, such as law, engineering, or accounting

Earning a degree in a relevant field, such as law, engineering, or accounting, is a crucial step towards becoming an insurance adjuster in Malaysia. This demonstrates your knowledge and expertise in a specific area, making you a more competitive candidate for insurance adjuster roles. Here are some reasons why earning a degree in these fields can be beneficial:

Law Degree:

• A law degree provides a strong understanding of legal principles and regulations, which is essential for insurance adjusters when evaluating insurance policies, claims, and settlements.
• Knowledge of contract law and liability will help you assess the validity of claims and determine the insurance company's legal obligations.

Engineering Degree:

• Pursuing an engineering degree can be advantageous, especially for roles in property and casualty insurance.
• It equips you with technical knowledge and skills to assess structural damage, construction defects, and mechanical failures, enabling you to make informed decisions about insurance claims related to these areas.

Accounting Degree:

• An accounting degree develops your financial analysis and management skills, which are crucial for insurance adjusters when evaluating financial records, calculating settlements, and managing insurance claims involving monetary losses.
• It also enhances your attention to detail and critical thinking abilities, ensuring accurate financial assessments and claim resolutions.

While a degree in these fields is not mandatory, it can set you apart from other candidates and demonstrate your commitment to the profession. Additionally, gaining relevant work experience in the insurance industry, preferably in claims handling or underwriting, will further enhance your profile and make you a strong candidate for insurance adjuster positions in Malaysia.

Gain work experience in insurance, especially claims handling

Gaining work experience in insurance, especially in claims handling, is a crucial step towards becoming an insurance adjuster in Malaysia. This experience allows you to develop a deep understanding of the insurance industry and build the necessary skills for managing claims effectively. Here are some guidelines to help you gain valuable work experience in this field:

• Understand the role of an insurance adjuster: Before seeking work experience, ensure you comprehend the responsibilities of an insurance adjuster. In Malaysia, adjusters are responsible for assessing and evaluating insurance claims. They work for insurance companies, investigating the validity of claims made by policyholders. Adjusters analyse the extent of damage or loss, determine appropriate compensation, and negotiate fair settlements.
• Seek entry-level positions: Look for job opportunities that offer entry-level or trainee positions in insurance claims handling. Some companies in Malaysia offer trainee loss adjuster or claims assistant roles, providing on-the-job training. These positions are an excellent way to gain practical experience and build a solid foundation for your career as an insurance adjuster.
• Develop relevant skills: While gaining work experience, focus on developing the skills necessary for insurance claims handling. Strong communication skills, attention to detail, analytical thinking, and problem-solving abilities are highly valued in this field. Additionally, knowledge of insurance policies and regulations, negotiation skills, and time management are essential for effectively managing claims.
• Network within the industry: Attend industry events, join relevant professional organisations, and connect with experienced professionals in the insurance industry. Building a solid network can provide insights into the latest industry trends and potential job opportunities. It also allows you to learn from the experiences of others and gain valuable advice for your career development.
• Explore diverse opportunities: Insurance adjusters are employed by a variety of organisations, including insurance companies, claims management firms, risk management companies, and law firms. Consider internships, apprenticeships, or part-time positions within these organisations to gain diverse work experience. This will not only enhance your understanding of the insurance industry but also demonstrate your adaptability and commitment to your career path.
• Stay informed: The insurance industry is constantly evolving, with new regulations and trends emerging. Stay updated by subscribing to industry publications, attending workshops and seminars, and enrolling in continuing education programmes. This demonstrates your commitment to professional development and ensures you are well-versed in the latest practices and regulations governing insurance claims handling.

Complete a certification in claims management or loss adjusting

To become an insurance adjuster in Malaysia, you will need to complete a professional certification program in claims management or loss adjusting. Here is some information about these certifications:

Basic Certificate Course in Insurance Loss Adjusting (BCCILA)

This course is designed to provide individuals with the necessary working knowledge and competency to support an efficient loss adjusting operation. It covers topics such as risk, insurance, and the marketplace; regulatory and legal environment; similarities and differences between conventional and Takaful insurance; principles of insurance, reinsurance, and Takaful; insurance products and key features; basic underwriting and claims processes; and the role and responsibilities of a loss adjuster. The course consists of two specializations: Motor Insurance and Non-Motor Insurance.

Certificate of the Malaysian Insurance Institute (CMII)

This certification is part of the Professional Certification Programme offered by the Malaysian Insurance Institute (MII). It covers essential technical knowledge in general insurance and the application of specialist claims skills, particularly in relation to personal lines and commercial property insurance.

Diploma of Loss Adjusting

The Diploma of Loss Adjusting is a highly regarded qualification that provides students with the skills and knowledge to succeed in their careers. It includes comprehensive course material developed by experienced loss adjusters and is essential for those seeking expertise and a qualification in claims assessment. The diploma covers topics such as introduction to loss adjusting, property and casualty loss adjusting, negotiating effective settlements, business fundamentals for loss adjusting, analysing insurance claims, and inspecting damage and developing a scope of work.

Associate in Claims (AIC)

The Associate in Claims (AIC) certification is a popular choice for claims managers and is awarded by The Institutes. It does not require more than two years of work experience or higher education, and there is no renewal needed after obtaining the certification.

Chartered Property Casualty Underwriter (CPCU)

The CPCU designation is respected as the premier designation in property-casualty insurance and immediately identifies holders as knowledgeable and dedicated professionals. It is awarded by The Institutes and requires more than two years of education or training after high school, as well as work experience.

Apply for a license from the Central Bank of Malaysia

To become an insurance adjuster in Malaysia, you need to apply for a license from the Central Bank of Malaysia, also known as Bank Negara Malaysia. This is a crucial step in the process as it allows you to work as an adjuster in the country. Here is a detailed guide on applying for the license:

Understanding the Role of an Insurance Adjuster

Before applying for the license, it is essential to understand the role of an insurance adjuster in Malaysia. Insurance adjusters are professionals responsible for assessing and evaluating insurance claims. They work for insurance companies and investigate the validity of claims made by policyholders. Adjusters analyse the extent of damage or loss and determine the appropriate compensation. They also negotiate with policyholders and third-party claimants to reach a fair settlement.

Eligibility Requirements

To be eligible for a license from the Central Bank of Malaysia, you typically need to meet certain educational and experiential requirements. Firstly, you should obtain a degree in a relevant field such as law, engineering, or accounting. This provides a strong foundation for the analytical and technical aspects of the job.

Secondly, gaining relevant work experience in the insurance industry is crucial. Aim for experience in claims handling or underwriting, as it will provide valuable insights into the insurance claim process and help develop the necessary skills for investigating and evaluating claims.

Completing Professional Certification

Enrolling in a professional certification program specific to claims management or loss adjusting is highly beneficial. Reputable programs such as the Chartered Institute of Loss Adjusters (CILA) or the Malaysian Insurance Institute (MII) offer comprehensive training and education. These programs will equip you with the knowledge and skills necessary to excel as an insurance adjuster and are often valued by employers and licensing authorities.

Application Process

The specific application process for the insurance adjuster license can be found on the official website of the Central Bank of Malaysia. The website should outline the required documents, fees, and any other necessary steps for submitting your application. Ensure that you carefully review and follow the instructions provided by the Central Bank of Malaysia to increase your chances of a successful application.

Adhering to Ethical Standards

As an insurance adjuster in Malaysia, you must adhere to strict ethical standards and guidelines set by the Central Bank of Malaysia. These standards ensure the fair and honest handling of insurance claims and protect the rights of policyholders. By obtaining your license, you commit to upholding these ethical principles in your professional conduct.

In conclusion, applying for a license from the Central Bank of Malaysia is a critical step in becoming an insurance adjuster in the country. By following the outlined steps, including obtaining the necessary education, gaining relevant experience, and completing professional certification, you can successfully apply for your license and embark on a rewarding career as an insurance adjuster in Malaysia.

Develop strong analytical and communication skills

To become an insurance adjuster in Malaysia, you need strong analytical and communication skills. Here are some ways to develop these skills:

Analytical Skills:

• Stay alert and stimulated by joining a book club or reading more books.
• Improve your mathematical skills by practising various forms of math problems.
• Play brain games such as Sudoku, crossword puzzles, or board games.
• Learn something new every day to expand your knowledge and cognitive abilities.
• Be observant and pay attention to detail by taking walks and noticing your surroundings.
• Join a debate club to discuss ideas and interpret information.
• Take an exercise class to improve your cognitive abilities and memorisation skills.
• Keep a journal to reflect on your day and learn from your mistakes.
• Ask questions to gain different viewpoints and actively wire your brain to think analytically.
• Use apps to track and analyse your daily habits, such as food intake or budget spending.

Communication Skills:

• Listen attentively and actively without interrupting or formulating a response.
• Be mindful of your body language, such as maintaining eye contact and avoiding crossing your arms.
• Adapt your communication style to suit the context and the person you are speaking to.
• Be clear and concise in your communication, both verbally and in writing.
• Practice empathy and emotional intelligence to build stronger relationships.
• Manage stress effectively to avoid misunderstandings or sending confusing signals.
• Seek feedback from others to identify areas for improvement.
• Engage in conversations and build mutual trust with colleagues.
• Ask questions to encourage the exchange of ideas and information.
• Simplify your language and avoid jargon to ensure your message is easily understood.

Frequently asked questions