by rhosummmer » Tue Apr 28, 2009 03:16 pm
Adjusters enjoy a significant position in the insurance industry since the insurers and the policyholders are equally dependent on them. They are responsible for the investigation during the claims handling procedure. They inspect the actual situation after a policyholder files a claim and determine the appropriate settlement amount to be paid by the insurance company for the losses or the damages. Although it's a lucrative career option, it's difficult to figure out the exact earning of an insurance adjuster since it depends on several factors.
How the insurance adjusters work?
The income of an insurance adjuster depends on how he works. According to the mode of the work, insurance adjusters are classified into:- Staff adjusters - Staff adjusters work as salaried employees of an insurance company. Their average annual salary starts from $26,000 and can range as high as $80,000 or even more.
- Independent adjusters - The independent adjusters work as contractors for the adjusting firms. They don't work as salaried employees, and don't have any fixed working hours. The more effort they put into their work, the more can be their income.
- Public adjusters - They work as separate entities on behalf of the policyholder or the insured.
| Area name | Employment | Annual mean wage |
|---|---|---|
| National | $2,63,810 | $61,110 |
Factors influencing an insurance adjuster's income
Several factors influence the income of insurance adjusters as mentioned below:- Location - Adjusters can earn more if they work in the metropolitan areas, due to the increased amount of risk factor. Auto accidents are more frequent in busy parts of the town. California, Texas, Pennsylvania, New York, Florida are the chief states which offer the highest scope for employment in this occupation. The top paying states for the insurance adjusters are Distrit of Columbia, Louisiana, New Jersey, Connecticut and Alaska.
- Frequency of the accidents - Accidents or mishaps are unpredictable. Independent adjusters handling the disaster related claims usually face very tough competition in their career. Their income can soar when disasters happen and lots of insurance claims pour in. However at other times, they may have to struggle a lot.
- Number of claims closed - Personal efforts also matter a lot when it comes to increasing the income for an insurance adjuster. The pay of an independent or public adjuster depends on the number of settled claims per day. Thus, the more the number of closed claims for an adjuster, the more will be his income.
- Type of claims handled – Whether it be a property claim or for worker's compensation, the type of claims handled by an insurance adjuster influences his earning. Adjusters handling the auto claims or multi-million dollar commercial properties have more scope for earning. Independent adjusters handling catastrophe claims might earn a lot for a few months and then run dry when there is scarcity of claims or when the claim amount is less.
- Experience - Senior adjusters can earn more due to their knowledge and experience about the insurance industry, than the amateur claim adjusters.
- Company or insurer - The income of a claims adjuster is also influenced by the insurance company or the insurer he works for. Insurers and hiring firms usually have their own set of pay structure according to which the adjusters get paid.
Who can become an insurance adjuster?
- Anyone can work as an insurance adjuster, if he has got the license and is above 18 years of age.
- Educational background doesn't relay matter for a claim adjuster. However, insurers usually prefer individuals with a sound educational background, and a college degree.
- Individuals willing to handle worker's compensation or liability claims should preferably have legal knowledge.
- Convictions or felonies may count against an individual applying for his adjuster license.
- Experience is usually not asked for when you go out to get an adjuster's license. However, reputed insurers usually don't appoint fresher as adjusters. Individuals with around two years of experience in the related insurance adjusting field are preferred.
How to become an adjuster?
To be an insurance adjuster, you need to have the license from your state since it lends you professional credibility in the industry.- Contact your State Department of Insurance to know the licensing laws in that particular state.
- Find out whether the state recognizes licensure from other state. It's advisable to obtain a license from the home state initially. Adjuster license from Texas or Florida offers a wider range of operation since it's accepted in other states as well. Thus, it's advisable to get those licenses subsequently. If the home state doesn't license claim adjusters, the Texas or Florida license will act as the replacement 'home' license.
- Before you sit for the licensing exam, you need to study for the state exam. You can take a pre-licensing course or an exam study program.
- Depending on the state laws, you might need to pay a fee for licensing and finger-printing. Some states may even ask for pre-licensing experience.
- After you pass the exam, you need to apply for the license. For that you may need to choose the line of insurance you would like your license to cover, like property, casualty, commercial, auto, all lines etc.
- Thereafter, you need to seek employment with an insurer. Reputed insurance companies usually don't appoint inexperienced adjusters. You need to work with a local firm that hires claim adjusters in the initial period. You can even try to find job openings for independent adjusters in the National Association of Independent Insurance Adjusters (NAIIA) directory.
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Whats training do you need and where do you get it in the st of ct? and the earnings the first year with a bachelors in accounting.
Posted: Fri May 01, 2009 05:25 am Post Subject:
Yup, after a long day of handling claims I feel full and satisfied! :)
Posted: Fri May 29, 2009 12:40 am Post Subject: Claims adjuster
Just about to have my first child and I am 32yrs old. I am looking to change careers and I am very much considering this field. After 2yrs in the field I would like to earn a min of 40 thousand. Do you think this is possible.
Posted: Fri May 29, 2009 05:22 am Post Subject:
Which state are you from James? The pay would also depend upon the area you are residing, along with the other determining factors like- the company, type of employment, nature of claims that you would handle i.e. injury or property damage, your experience and so forth.
Do you have any previous experience in the field of insurance?
Posted: Fri May 29, 2009 05:31 am Post Subject:
James, first off you need to obtain the license to become the adjuster and for that you need to pass the state licensing test. Check out with your state's licensing requirements.
Posted: Fri May 29, 2009 10:18 am Post Subject:
After 2yrs in the field I would like to earn a min of 40 thousand. Do you think this is possible.
Jeremy, is of course correct...area, company and type of adjusting will make a big difference...In my area...the company I work for I think new hires without any experience start at about 38k or so...so this should'nt be much of a problem...most if not all carriers have a hiring freeze going on now...unless absolutely necessary to replace an adjuster...so might be a little tough..James, first off you need to obtain the license to become the adjuster and for that you need to pass the state licensing test
Jeorge all states do not require adjuster licensing...Posted: Fri May 29, 2009 11:28 am Post Subject:
most if not all carriers have a hiring freeze going on now...unless absolutely necessary to replace an adjuster...so might be a little tough..
Doesn't progressive hire all the time?
Posted: Wed Jun 10, 2009 11:01 pm Post Subject:
Sorry for the delayed response.....
I'm from Ontario Canada. I have looked in the requirements and I'm set on taking the business insurance course at our local college.
Posted: Thu Jun 11, 2009 05:21 am Post Subject:
Hello James, thanks for returning :)
Best of luck! Hope you find success with your new career.
What line have you decided to pursue? Also, are you going to be with an insurance company or go independent?
Keep us posted. :)
Posted: Sun Aug 16, 2009 07:55 pm Post Subject: Claims Adjuster
How much you make depends on what comany you work for. Some work as independents for companies like Pilot and can make 200-300 thousand a year but they also have to pay for EVERYTHING. Plane tickets, rental cars, food, hotel, supplies and health insurance are all out of pocket. Independents are paid on a fee schedule and might make $90 if home is not approved and can make $250-450 if home is approved (usually on the lower end of that scale). Most will look at 4-7 houses a day and if all were approved that could be $1750 for a days work. Other adjusters work directly for the companies and get a salary with benefits but much less pay. Being independant requires great organization skills and being willing to travel 8-10 month out of the year. I talked to one adjuster a couple days ago who had not been home in 8 months. Allstate has the best training program from all the companies but you are considered a trainee for 3 months minimum. I have met with 2 adjusters (out of 50+) who do not leave their homestate and do make close to $100,000 a year but they have been with their companies for 15+ years. The only other thing to know is that there is a lot of paper work when you are done looking at houses. You might spend an hour or two per house doing inspections and measuring and the 45 minutes to an hour of paperwork when you get home.
Everything I wrote above deals with adjusting homes for storm damage and has nothing to do with auto.
Posted: Mon Aug 17, 2009 12:56 pm Post Subject:
Some work as independents for companies like Pilot and can make 200-300 thousand a year but they also have to pay for EVERYTHING.
Well, I think such offers show you through some real savings opportunities.Even when I go for such expenses out-of-pocket, I'm sure I'm gonna choose the kinda service that's economical under the current global crisis. Once I know, I'd bag 200-300 a year, it would help plan a budget!
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