An Insight into the Loss Adjusting Industry
THE LOSS ADJUSTING INDUSTRY IS AN IMPORTANT PART OF THE INSURANCE INDUSTRY AND YET, NOT MANY ARE FULLY AWARE OF THE ROLE IT PLAYS, THE DEMANDS EXPECTED OF THEM AND THE FRAUDS THE INDUSTRY FACES. ABDUL AZIZ MOHD NOR (AA), THE CEO OF ASSOCIATED ADJUSTERS SD
I think professionalism tends to carry different meaning and emphasis to different people. At least it should include some of the key elements – competency, delivering and commitment
In your opinion, what is the state of loss adjusting in Malaysia?
AA In essence, Loss Adjusters are independent surveyors and assessors for the insurance sector. Loss adjusting is divided between the motor division which involves cars/vehicles, and the non-motor side – which involves fire, burglary, construction and personal accident. The technicalities are different and the job is very challenging, that’s one of the reasons why we don’t get many entrants to the industry. But loss adjusting is interesting. If you’re doing consequential type of losses, quantitative methods and analytical skills are important. You can even go into financial loss, like fidelity guarantee and policies where you insure banks against the frauds of the employees.
I think professionalism tends to carry different meaning and emphasis to different people. At least it should include some of the key elements – competency, delivering and commitment to quality, client centre with customers’ interest in mind. The other aspect of professionalism is much driven by the ethos of the company and here the leadership of the firm is crucial. The contribution of loss adjusters sometimes have not been fully appreciated. Based on Bank Negara Malaysia’s statistics, loss adjusters handled a total of 400,000 claims annually and that speaks volume; without professionalism, visà-vis competency, commitment and customer care, that would have been near impossible to achieve, especially when you consider that during the recent flooding in the eastern states in Peninsula Malaysia where it was estimated that loss adjusters handled/ inspected at least 20,000 claims within that short period.
What are the challenges faced by the loss adjusters industry?
Loss adjusters are service providers to the general insurance industry and certain aspects of challenges faced by insurers are in turn cascaded down to the vendors including loss adjusters. Claims management is one of the most important components for an insurer whose business are very clientoriented. In our current business environment where customers are more demanding and expect more, insurers would need to take incremental steps to improve the