What does adjusting a claim mean?

Claims adjusting is the process of determining coverage, legal liability, and settling a claim. The claim function exists to fulfill the insurer’s promises to its policyholders. Claim adjusting is integral to establishing an insurer’s relationship to its policyholders.

Is claims adjusting stressful?

Is claims adjuster a stressful job? Claims adjuster job is very stressful as it comes with lots of highly demanding activities. However, when you put in the hard work and dedication, the rewards far outweigh all the tough demands of the job.

How does claims adjustment work?

A claims adjuster is a representative of the insurance company. An adjuster coordinates an appraisal, gathers the facts and reports the details of a claim to the insurer. The adjuster recommends whether a claim is covered under the policy. They also negotiate with the policyholder on behalf of the insurance company.

How are insurance claims adjusters paid?

Independent adjusters working catastrophe claims earn a percentage of the amount of each claim they settle. This system of payment is known as a ‘fee schedule. The adjuster will receive between 60-70% of the fee, with the other 30-40% going to the adjusting firm they work for.

How much does an IA adjuster take home?

New adjusters just entering the field will likely hear references to a 60% or 70% fee percentage, for example. This refers to the cut the independent adjuster takes home from the fee schedule amount. The remaining 30 to 40%, as stated above, then goes to the IA firm that oversees the adjuster.

How is the fee split between the adjuster and the adjusting firm?

The Fee listed in the second column cites how much the insurance carrier will pay out for the adjusting services rendered. This fee amount is what will then be split between the adjuster and the adjusting firm, with between 60-70% typically going to the adjuster and 30-40% going to the firm.

When did independent adjusters start to get paid?

This is an updated version of an article we originally published in 2009. One common concern we hear from our students and new adjusters is confusion about how independent adjusters are paid.

What is the range for a claim settlement?

The Claim Range column lays out 14 possible categories under which a claim settlement could fall – from a simple ‘erroneous assignment’ where you are given nominal compensation for the trouble of determining the error, to a claim settlement of over $250,000.01.