The Demand For Loss Adjusters Has Never Been Greater

When I started Adjusting Appointments in 1984 there were more than 20 independent loss adjusting practices throughout the UK, including a number that were very small and just operating in a particular region eg Robert McTear & Co that was mainly in Scotland and Ware & Co which operated solely in Devon, Somerset & Cornwall.  At the time the loss adjusting profession offered a significant range of employment possibilities.

 

In addition, loss adjusters operated from traditional offices as technology did not support any other form of working.  These offices provided natural homes for mentoring and training programmes to take place.  At the same time there was a huge range of traditional insurance companies employing personal lines and commercial claims handlers to undertake important claims functions and they, in turn, provided a natural breeding ground for loss adjusters. “Trainees” were commonplace throughout the profession and, working within vibrant branch offices surrounded by highly experienced Chartered Loss Adjusters, there was a clear opportunity to develop the future generations.

 

However, during the 1990s the trend evolved for independent loss adjusting practices to sell out to large corporate entities and the face of the profession changed irrevocably.  With the massive improvement in technology and the drive to cut costs, the combination signalled the death-knell for the traditional Branch office and therefore the progression of the trainee loss adjuster.  Loss adjusting practices changed the look of their businesses from traditional Branch offices to regional service centres, and the age of the home-based loss adjuster came into existence.

 

During the course of the last 25-30 years the acceleration towards the loss adjusting profession being a purely home- based one has continued at a pace.

 

The natural result of such policies has been that mentoring and training programmes have diminished extensively throughout the profession and our clients now only look to recruit loss adjusters who are trained and fit for purpose from day one.  There are now very few opportunities for individuals to train from the outset into traditional external loss adjuster roles.

 

For those who have been around since the 1990s it was said on many occasions that if the profession did not address the development of trainees, then an age and skills gap would soon become evident.  In 2023 this is all too clear for everyone to see.

 

A second, slightly different, effect has been the move to compartmentalise the way loss adjusters work, with all firms now having separate divisions for domestic, high net worth, commercial, major loss, liability, construction etc. 40 years ago loss adjusters trained as all-rounders and were able to deal with a wide range of losses.  In 2023 only the significantly older offer such skills and career paths must be chosen early, as to which specialist area you wish to develop your career in.

 

Given the way the profession has developed over the last three decades, and the additional impact of the Covid pandemic, it has become clear that loss adjusters have never been more in demand than they are now.  Over the course of my 40 year career in recruiting for the loss adjusting profession, we would generally look for employers to offer a minimum 10% improvement in basic salary to attract a potential employee, but that 10% has now risen to nearer 25% and in some areas, dependent upon specialisation, it has been in excess of this figure.  There is also no doubt that the lack of trainees entering the loss adjusting profession in the 1980s and 1990s has severely impacted on the age and experience profile of the profession, both in terms of limiting the numbers that now work within loss adjusting and in increasing the average age profile.

 

All these factors added together mean that the profession of the loss adjuster has never been more in demand than it is today and for the first time in decades loss adjusters are financially able to command their true worth.

 

We are aware that a number of firms are keen to address the shortage of trainees through establishing graduate programmes and academy schemes, but the issue is becoming more serious by the day and the long-term future of the profession could be in serious jeopardy unless these areas are addressed.  For now, however, loss adjusters can definitely make hay while the sun shines.