Unlocking The Insurance Adjusting Field: Strategies For Breaking In

Breaking into insurance adjusting is a relatively simple process, especially compared to other careers. It takes hard work, but it can be done in just a few weeks. The first step is to decide if insurance adjusting is right for you. It is a stable industry with excellent earning potential, but it requires self-discipline, a strong work ethic, and great communication skills. The next step is to choose the type of adjuster you want to be, such as staff adjuster or independent insurance adjuster. Then, you need to get your adjuster license, which can be done by taking a licensing course and passing a state licensing exam. After that, it's important to learn additional skills like the industry-standard claims writing software, Xactimate. Finally, you can start applying for jobs and networking with potential employers.

Complete minimum education requirements: High school diploma or GED

To become an insurance adjuster, you need to complete the minimum education requirements. This means that you must have either a high school diploma or a GED (General Educational Development) equivalent. If you do not possess either of these, you should consider enrolling in GED courses and passing the GED exam. While most insurance adjuster positions do not require a bachelor's degree or higher, having one may set you apart from other candidates.

It is important to note that some states may have additional requirements for insurance adjusters, such as obtaining a license. However, there are also states that do not require licensing. It is recommended to research the specific requirements for the state in which you plan to work.

In addition to education and licensing, certain skills are essential for a successful career as an insurance adjuster. Strong communication skills, both oral and written, are crucial as adjusters regularly interact with multiple stakeholders. Proficiency in using computers and relevant software is also advantageous, as most insurance companies rely on electronic means to deliver claims estimates and information. Time management skills are also important, especially for independent adjusters handling catastrophe claims, as timely handling of claims is expected.

Decide: Staff, independent or public adjuster

Staff, Independent or Public Adjuster?

There are several types of insurance adjusters, and deciding which one to be will determine the steps you need to take to follow that career path.

Staff Adjuster

A staff adjuster is typically the most well-known type of insurance claims adjuster. They work as year-round employees, usually full-time, for an insurance company. They are often salaried and receive benefits from the insurance company. Staff adjusters are typically in high demand as they handle claims management for the insurance company's clients. Most commonly, they work for an auto insurance company and oversee claims related to automobile accidents and other auto-related incidents.

Independent Adjuster

Independent adjusters are third parties who perform adjusting services on a freelance basis. They are not directly employed by an insurance company but are hired by an insurer when a claim is made. They are contracted by a third-party who specialises in homeowners or other types of insurance claims. They are typically hired when there is a high volume of claims and/or for statutory reasons. Independent adjusters are usually required to comply with the license requirements of the state in which they perform their work.

Public Adjuster

Public adjusters work directly for policyholders or customers. They are hired by claimants rather than insurers and help the claimant obtain the highest possible settlement from the insurer. They are usually enlisted when a person or business does not feel their insurance settlement is fair or meets their needs. For example, if your insurance company refuses to provide an adequate settlement after a car accident, you may hire a public adjuster to assess the claim and fight on your behalf.

Each type of adjuster has its advantages and considerations. Staff adjusters offer stability and the full benefits of being an employee of an insurance company. Independent adjusters, on the other hand, have the potential to earn more, especially in catastrophe situations, but the work can be unpredictable and challenging. Public adjusters have the opportunity to work solely for the claimant and help them receive a fair settlement, but there is a risk of manipulation due to the claimant's inexperience.

Take and pass an insurance licensing exam

To become an insurance adjuster, you'll need to take and pass an insurance licensing exam. This is a crucial step in pursuing a career in insurance adjusting, as it demonstrates your knowledge and understanding of the industry and specific state requirements. Here are some detailed instructions to help you through the process:

Step 1: Check State Requirements

First, you need to determine if your state licenses insurance adjusters. Most states in the US require insurance adjusters to be licensed, but there are exceptions. For example, Colorado, Kansas, Nebraska, South Dakota, North Dakota, Missouri, Iowa, Illinois, Wisconsin, Tennessee, Ohio, Virginia, Maryland, Pennsylvania, New Jersey, and Massachusetts do not mandate adjuster licenses. If your state does not require licensing, consider obtaining a license from another state to increase your job prospects. Florida is a popular choice for a designated home state (DHS) license.

Step 2: Complete Pre-Licensing Education

To be eligible to take the licensing exam, you may need to complete a pre-licensing course. These courses are designed to provide you with the foundational knowledge and skills needed to become an insurance adjuster. They are offered by various institutions, including AdjusterPro, and are available in both classroom and online formats. Check with your state's insurance regulator or department of insurance to find out the specific requirements for your state.

Step 3: Take the Licensing Exam

Once you have met the prerequisites, you can register for the insurance licensing exam. The exam will test your knowledge of insurance laws, regulations, and practices specific to your state. It may include questions on topics such as property and casualty insurance, claims processing, policy coverage, and ethical standards. Be sure to review the exam content outline and any study materials provided by your state or the testing provider.

Step 4: Apply for Your License

After successfully passing the licensing exam, you can proceed to apply for your insurance adjuster license. The application process varies by state, but it typically involves submitting your application, paying the required fees, and providing any necessary documentation. Check with your state's insurance regulator or department of insurance for specific instructions and requirements.

Step 5: Obtain Reciprocal Licenses

If you plan to work in multiple states, consider obtaining reciprocal licenses. This will allow you to work in other states without taking their specific licensing exams. The Gulf Coast and Eastern states are often favoured by employers due to the high volume of claims. Obtaining reciprocal licenses in these states can increase your job prospects and flexibility.

Step 6: Maintain Your Licensure

It's important to remember that obtaining your license is just the beginning. To maintain your license and stay compliant, you will need to fulfil continuing education requirements. This typically involves earning continuing education credits by taking additional courses or participating in industry-related activities. Each state has its own requirements for license renewal, so be sure to stay up to date with your state's regulations.

Maintain licensure: Continuing education credits and license renewal

Once you have become a licensed insurance adjuster, you will need to maintain your licensure by earning continuing education credits and regularly renewing your license. Each state has different requirements for maintaining your license, so be sure to research the specific requirements for your state.

In some states, continuing education (CE) credits are required to renew or relicense an insurance license. For example, in Texas, license holders must complete 24 hours of CE every two years, including 3 hours of ethics. In New York, 15 CE credits are required to renew or relicense an insurance license that has been in effect for more than two years. These credits must be accumulated during the licensing period and can be earned by taking approved courses offered by authorised providers.

In addition to earning CE credits, you may also need to regularly renew your license. The frequency of license renewal can vary by state and license type. For example, in Texas, the license renewal deadline is every two years on the last day of the birth month. In other states, such as Florida, there may be specific compliance cycles that affect the timing of license renewal and CE requirements.

To maintain your licensure as an insurance adjuster, it is important to stay informed about the specific requirements of your state and license type. This may include completing the necessary CE credits, renewing your license on time, and complying with any other state or industry regulations. By staying up to date with your licensure requirements, you can ensure that you remain in good standing as a licensed insurance adjuster.

Develop skills: Communication, computer, time management

Developing the right skills is an important step in becoming an insurance adjuster. Here are some key skills to focus on:

Communication Skills

Insurance adjusters need to be effective communicators, both orally and in writing. They regularly interact with multiple stakeholders, including insurance policyholders, insurance companies, and other professionals involved in an insurance claim. Being able to communicate clearly and concisely ensures that all parties are well-informed and receive timely updates regarding a claim. Strong communication skills also help adjusters in their role as negotiators, working with both the insurer and the insured to arrive at a fair settlement.

Computer Skills

Computer proficiency is essential for insurance adjusters, as they rely heavily on computer systems and software to perform their jobs. Most insurance companies use electronic means to deliver claims estimates and other claim-related information. Therefore, adjusters need to be comfortable with using computers and various software programs to efficiently manage claims. Proficiency in industry-standard claims writing software, such as Xactimate, is particularly important for success in this field.

Time Management Skills

Time management is critical for insurance adjusters, especially those working as independent claims professionals in catastrophe claims. Adjusters often handle multiple claims simultaneously and must be able to prioritize their work effectively. Policyholders expect timely handling of their claims, especially in the aftermath of a disaster or catastrophic event. Adjusters need to be organized, efficient, and able to manage their time effectively to meet the expectations of all stakeholders.

In addition to these skills, insurance adjusters should also possess strong analytical abilities, problem-solving skills, and attention to detail. They must be able to review and analyze claims, policies, and relevant documentation thoroughly and accurately. Strong interpersonal skills and the ability to work well under pressure are also advantageous in this line of work.

Frequently asked questions