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Origins
INDEPENDENT LOSS ADJUSTERS do not appear to have existed until the early 1800s. Introduction of fire insurance on buildings, shortly after the Great Fire of London from 2 to 5 September 1666, that heralded the beginning of the profession. Initially managers of insurance companies assessed the amounts of losses themselves, but soon independent surveyors or builders were employed to advise on the settlement of building claims.
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The Great Fire of London, 1666

The Great Fire of London, 1666

Origins
By 1800, two or three principal Fire Offices were appointing assessors to act for them exclusively. A number of the present-day loss adjusting firms have histories dating back to this time, more than 200 years ago. In 1941, prominent members of the profession formed The Association of Fire Loss Adjusters. First occasion on which the word adjuster came into common usage, previously these individuals had been known as assessors.
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Origins
During and after World War II, the Association began to exercise control over all aspects of the professional standards and conduct of their members. In 1961 the Association was granted a Royal Charter. Title of the original Association was altered to The Chartered Institute of Loss Adjusters (CILA), and the Grant of Arms was received in 1979.
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Other Adjusters Associations

AICLA Australasia CIAA Canada FUEDI Europe LAAJ Japan IIISLA India AMLA Malaysia ILAN Nigeria
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ILASA S. Africa SLALA Sri Lanka IILA lllinois ALOSI Chile NAIIA USA LAAS Singapore

Loss Adjuster

Person employed in a professional capacity in connection with adjustment of losses.

Loss Adjustment

The ascertainment of the amount of indemnity which the Insured, after all allowance and deduction made, is entitled to receive under the policy and the fixing of the proportion which each Insurer is liable to pay.

Role of a Loss Adjuster

Basic duties of a loss adjuster
Establish facts to determine:
a) Policy Liability b) Quantum c) Recovery

Role of a Loss Adjuster

Basic steps for determination of liability:
a) Identification of property insured b) Verification of location of risk c) Establish ownership or insurable interest d) Establish cause e) Relate findings to policy provisions
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Role of a Loss Adjuster

Basic steps for determination of quantum:
a) Determine nature and extent of damage b) Establish method of making good damage c) Establish costs of making good damage d) Deduct costs which are not direct result of an

insured event or are within policy exclusions e) Deduct allowance for depreciation, if applicable f) Establish residual or salvage value, if applicable g) Apply policy limitations, e.g. excess, limit of liability, average
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Role of a Loss Adjuster

Basic steps in respect of recovery:
a)

b) c) d)

Establish if loss or damage is caused by an act or omission of a third party and secure the necessary evidence Identify the third party Ensure rights of recovery are preserved Recommend actions for pursuit of recovery

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Role of a Loss Adjuster

Procedures normally adopted by a loss adjuster:
a) First Visit

Introduction to Insured and explanation of role Preliminary enquiry and inspection Identify and initiate mitigating measures Plan detail work on investigation of liability, quantum and recovery v. Discuss method(s) of establishing loss vi. Obtain all available documents and request for further relevant documents
i. ii. iii. iv.
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Role of a Loss Adjuster

Procedures normally adopted by a loss adjuster:

b) Preliminary advice of circumstances, nature and extent of damage and reserve to Insurer. c) Submission of preliminary report to Insurer. d) Continue enquiries into liability, quantum and recovery. This would involve further inspections, enquiries with Insured, suppliers, repairers, police, fire brigade and other sources. e) Update Insurer of developments at each stage of progress or at regular intervals; seek instruction on matters as and when required.
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Role of a Loss Adjuster

Procedures normally adopted by a loss adjuster:
f) Upon completion of enquiries, submit final report

to Insurer. g) Pursue recovery if not yet completed.

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