Claims Adjusters, Appraisers, and Investigators Training

Education and training. There are no formal education requirements for any of these occupations, and a high school degree is typically the minimal requirement needed to obtain employment. However, most employers prefer to hire college graduates or people who have some postsecondary training.

No specific college major is recommended, but a variety of degrees can be an asset. For example, a claims adjuster who has a business or an accounting background might be suited to specialize in claims of financial loss due to strikes, breakdowns of equipment, or damage to merchandise. College training in architecture or engineering is helpful in adjusting industrial claims, such as those involving damage from fires or other accidents. A legal background can be beneficial to someone handling workers’ compensation and product liability cases. A medical background is useful for those examiners working on medical and life insurance claims.

The following tabulation presents the 2006 percent distribution of all claims adjusters, appraisers, examiners, and investigators by their highest level of educational attainment:

For auto damage appraiser jobs, firms typically prefer to hire people who also have experience as an estimator or as a manager of an auto body repair shop. Also, an appraiser must know how to repair vehicles in order to identify and estimate damage. Technical skills are essential. While auto damage appraisers do not require a college education, most companies prefer to hire persons with formal training. Many vocational colleges offer 2-year programs in auto body repair and teach students how to estimate the costs to repair damaged vehicles.

For investigator jobs, most insurance companies prefer to hire people trained as law enforcement officers, private investigators, claims adjusters, or examiners because these workers have good interviewing and interrogation skills.

Beginning claims adjusters, appraisers, examiners, and investigators work on small claims under the supervision of an experienced workers. As they learn more about claims investigation and settlement, they are assigned larger, more complex claims. Trainees take on more responsibility as they demonstrate competence in handling assignments and progress in their coursework. Auto damage appraisers may also receive some on-the-job training, which may last several months. They may work under close supervision while estimating damage costs until their employer decides they are ready to perform estimates on their own.

Continuing education is very important for claims adjusters, appraisers, examiners, and investigators because Federal and State laws and court decisions affect how claims are handled or who is covered by insurance policies. Also, examiners working on life and health claims must be familiar with new medical procedures and prescription drugs. Examiners working on auto claims must be familiar with new car models and repair techniques.

Many companies offer training sessions to inform their employees of industry changes, and a number of schools and associations give courses and seminars on various topics having to with claims. Correspondence courses via the Internet are also making long-distance learning possible.

Licensure. Licensing requirements for claims adjusters, appraisers, examiners, and investigators vary by State. Some States have few requirements, while others require either the completion of prelicensing education, a satisfactory score on a licensing exam, or both. Earning a voluntary professional designation can sometimes substitute for completing an exam. In some States, claims adjusters employed by insurance companies can work under the company license and need not become licensed themselves. Public adjusters may need to meet separate or additional requirements. For example, some States require public adjusters to file a surety bond.

Some States that require licensing also require a certain number of continuing education credits per year in order to renew the license. Workers can fulfill their continuing education requirements by attending classes or workshops, by writing articles for claims publications, or by giving lectures and presentations.

Other qualifications. Claims adjusters, appraisers, and examiners often work closely with claimants, witnesses, and other insurance professionals, so they must be able to communicate effectively with others. Knowledge of computer applications also is very helpful. In addition, a valid driver’s license and a good driving record are required for workers who must travel on the job. Some companies require applicants to pass a series of written aptitude tests designed to measure their communication, analytical, and general mathematical skills.

When hiring investigators, employers look for individuals who have ingenuity and who are persistent and assertive. Investigators should not be afraid of confrontation, should communicate well, and should be able to think on their feet. Good interviewing and interrogation skills also are important and usually are acquired in earlier careers in law enforcement.

Certification and advancement. Employees who demonstrate competence in claims work or administrative skills may be promoted to more responsible managerial or administrative jobs. Similarly, claims investigators may rise to become supervisor or manager of the investigations department. Once they achieve expertise, many choose to start their own independent adjusting or auto damage appraising firms.

Numerous examiners and adjusters also earn professional certifications and designations to demonstrate their professional expertise. Although requirements for these designations vary, many entail at least 5 to 10 years of experience in the claims field and the successful completion of an examination; in addition, a certain number of continuing education credits must be earned each year to retain the designation.