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.
Related discussions
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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: Mon Aug 17, 2009 10:32 pm Post Subject:
Well I hope there are adjusters out there making 200k-300k, I sure don't know any that make even close to that! It would have to be storm chasers and as the poster said gone most of the year...Sounds like something I might think about when I retire! :wink:
Posted: Tue Aug 18, 2009 06:30 am Post Subject:
The majority of CAT adjusters don't make anywhere near 200 to 300K. Everyday people see that type of post on a thread and think that they can make that until they pay for the training, purchase a vehicle and all tools needed, and then sit on their hands waiting for a storm and to actually get called out on a storm. There is so much more to it then just getting that much money a year.
Posted: Tue Aug 18, 2009 12:35 pm Post Subject:
I know quite a few stormers, that work independent, one actually was a prior manager of mine that sold out and bought a motor home and he and his wife follow storms..but they sure don't make that much..
Das, you ever even HEARD of an adjuster making 200-300k?
Posted: Tue Aug 18, 2009 11:12 pm Post Subject:
I worked as a CAT supervisor in a prior life and would talk to CAT adjusters on a daily basis. The ones that I heard of that make that amount of money usually had a team set up to make that amount of money. The adjuster would inspect as many losses as possible with a wife or partner(s) at the hotel or cheapest shack that they could find with internet access (and power to boot). The "staff" at the hotel would set up appointments, map loss locations, draw diagrams, mount photos, and sometimes write estimates and reports. This would leave the adjuster to just do inspections (you could do a lot more in a day without all the other hassles). This is frowned upon by carriers and vendors since the adjuster is leaving important work to people without the experience.
Now the only adjusters that have a chance to make this kind of money would be pure CAT adjusters that worked for a vendor or more likely several vendors at a time. No staff adjuster or staff independent could make that kind of money. The one poster is correct, pure CAT adjusters have a lot of expenses that are not covered by any employer including computer, onsite tools, software (xactimate, simsol and some times more then one kind depending on the carrier), gas, lodging, food, transporation and spare cash for problems that arise.
There are a lot of CAT adjusters out there that can't make enough to make a living and end up dropping out and getting a different job. This is usually after being in the hole 10 to 15K and not being able to get out.
Posted: Wed Aug 19, 2009 10:16 am Post Subject:
That's what I thought...
Posted: Thu Mar 04, 2010 06:17 pm Post Subject:
I have been a Company Adjuster (adjuster who works for an insurance carrier such as Allstate), an Independant Adjuster (adjuster who works for several isnurance carriers on a freelance basis) and am now a Public Adjuster (adjusters who are retained specifically by the insured at the time of loss).
Company adjusters do not need licensing. Once they are hired by the company they use their license so this is the easiest way to become an adjuster. If you are looking into homeowners claims, where the salaries are a little bit higher than auto, then you need a BA and basic computer skills. If I were you I'd go to xactimate.com and get the free demo and learn how to use that program as 90% of all companies use this program to adjust losses. After two years you could easily make $40k a year however don't expect to make much more than that. Managers at Nationwide Insurance make around $70k with 10 years experience.
I.A.'s you would have to look at your states Department of Insurance homepage, find out the requirements and take the test.. all of this can be found on that page. You could make much more than $40k in two years if you pair up with a company that outsources you for disasters.. I worked Katrina, Rita, Wilma, wildfires..etc. and made $40k in several months... keep in mind they were 14 hour days, no days off for weeks at a time.
Public Adjusters have the same requirements as IA except a little different testing. If you work for a PA firm you do get a percentage of the claim plus there are bonuses, and other perks such as trips and free lunches (steak for lunch 1x - 2x a week adds up!) First year, if you are establish company you can make $40k.. however once you get experience and if you market yourself right and chase the occasional fire I know people that make $300k a year.
Thats basically the breakdown of each.. if I were you I'd go company adjuster first, learn all you can and then get out and become a Public Adjuster..
Posted: Thu Mar 04, 2010 06:25 pm Post Subject:
Company adjusters do not need licensing
This varies from state to state. There are several states where each company adjuster needs to be licensed.Posted: Thu Mar 04, 2010 10:47 pm Post Subject:
Tcope read my mind..Kevin maybe not in your area, but many states require individual licensing of adjusters.
Posted: Wed Jun 02, 2010 01:15 am Post Subject: Adjuster
Public major cat. adjuster in South Florida may be extremely profitable.
Posted: Wed Mar 09, 2011 10:49 pm Post Subject:
i am a property adjuster and started at 48,000.00 With my company I will max out at apx $74,000.00 I have family members that are managers and make apx 140,000.00 and agents closer to 200,000.00 So, it is a very lucrative buisness. I am one who enjoys my job. There is a lot of paper work, but i do a lot of investigating... We have clerks and assistants to do paperwork
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