Insurance Agent Forum

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:

1. 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.
2. 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.
3. 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

According to BLS data

Factors influencing an insurance adjuster's income

Several factors influence the income of insurance adjusters as mentioned below:

1. 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.
2. 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.
3. 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.
4. 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.
5. Experience - Senior adjusters can earn more due to their knowledge and experience about the insurance industry, than the amateur claim adjusters.
6. 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.

1. Contact your State Department of Insurance to know the licensing laws in that particular state.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.

You can update your professional portfolio gradually by undergoing other training courses like the Property Technical Certification (PTC), Xactimate 27 training, Adjusting 101 etc. Advanced certifications and experience will bring in increased pay and better opportunities.

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