Whether due to natural disasters or accidents, people around the world today encounter unfortunate incidents they never would have expected to happen to them. Insurance acts as a safety net that protects them from financial loss and provides replacements or compensation. Whether you are involved in a car accident or have damaged your property, your main point of contact will be an insurance claim adjuster. They will assist you throughout the process and ensure that policyholders are fairly compensated for their losses.
Who is an Insurance Adjuster?
Insurance Adjusters are one the crucial pillars holding up every insurance organization. An adjuster’s responsibility is not limited to determining the extent of liability owed by an insurance company but extends to estimations, policy reviews, settlement negotiations, and more. Claim Adjusters are trained professionals who utilize a variety of tools, such as Xactimate, known for its comprehensive functionality.
Broadly speaking, a claim adjuster manages the entire estimation process, including interviewing the policyholder or claimant, investigating the damage (consulting police or hospital records), evaluating repair estimations, and finally determining the extent of an insurer’s liability.
What are the Types of Insurance Adjusters?
There are various types of adjusters who assist with the estimation and settlement process; among these, three common types of adjusters that claimants might come across are:
Staff Adjusters: Staff adjusters are full-time adjusters employed by insurance organizations. They may be either Field Adjusters—those who travel to the damaged property or wrecked vehicle to investigate the incident and make proper documentation, or Desk Adjusters—those who work remotely and focus on reports and other clerical work. Typically, Field and Desk Adjusters collaborate with each other to resolve claims.
Independent Adjusters: Independent adjusters are specifically hired by insurance organizations to evaluate claims, functioning as either freelancers or contractual employees who would access the claim impartially. They would perform the same responsibilities as a staff adjuster and are hired when there is an increase in claim volume.
Public Adjusters: Public adjusters are the only type of adjusters who work primarily for the claimant’s best interests. They are hired by policyholders to evaluate and negotiate claim settlements. These adjusters typically work on a commission basis or are sometimes compensated directly by the claimant.
Complexities Faced by Claim Adjusters
The insurance industry is changing almost daily, and keeping up with these changes in any niche would be an uphill task.
There has been a drastic increase in claims related to natural disasters. This is due to the impact that climate change has on our environment. A perfect example of this would be the LA wildfires in January 2025, where over 40,000 acres of land were burnt down and more than 10,000 residential structures were decimated. The damage valuation, coupled with the challenges of environmental liability assessments, has made evaluating natural disaster claims a problematic task.
With the technology boom, cyber insurance has become a completely new niche that adjusters need to specialize in. Technological risk claims are growing in the insurance industry, and every day, there is a new liability scenario in the digital landscape.
These are just a few of the difficulties that insurance adjusters face. Many considerations, such as compliance complexity, demographic and social trends, interdisciplinary knowledge, and more, serve as hindrances to today’s adjusters. This has resulted in the emergence of technology in the insurtech domain that simplifies the process for adjusters. Claim investigations have evolved; technology, of course, has assisted with investigations: databases, records, digital evidence, and more.
Discover how modern claims management platforms support adjusters in their daily tasks in our detailed review of Insurance Claims Management Software
Technological Aid is a Necessity
Claim adjusters must constantly upgrade their skill sets to meet the demands of the insurance industry and claimants. Technology can be crucial in adapting to the changes in the industry and catering to various claim scenarios. People might think technology is an advantageous asset, but we need to realize that it is necessary. With more and more insurers digitizing their operations, adjusters should not be left out of the loop. An adjuster’s knowledge, acumen, and experience combined with technology can provide claimants with a fair claim settlement. Moving forward, we must strike a balance between human insight and technological advancement. Equipping adjusters with the tools and technologies they need to successfully and quickly process claims is the insurance industry’s future.
Want to learn more about the software tools adjusters use for estimations? Read our comprehensive guide on Insurance Estimating Software.
