COMMENT: The crucial role of loss adjusters goes beyond financial

Loss adjusters are often perceived as financial gatekeepers tasked with assessing damage and quantifying losses. However, their role extends far beyond financial considerations. They are a critical pillar in the insurance claims process, offering guidance, reassurance, and practical solutions to policyholders navigating some of the most challenging periods of their lives.

A profession under pressure

Loss adjusters are operating under mounting scrutiny. Surge events, such as widespread flooding, have increased in both frequency and severity, while economic pressures on insurers continue to drive a focus on cost control. Moreover, the introduction of the FCA’s Consumer Duty principles has brought an increased emphasis on customer outcomes, with loss adjusters expected to play a pivotal role in balancing these expectations.

At times, loss adjusters find themselves in an unenviable position, tasked with explaining coverage limitations and policy conditions that may not align with a claimant’s expectations. While they remain independent professionals, there is often a delicate balance to meet the needs of both insurers and policyholders. With claims satisfaction levels a growing focus, the adjuster’s role must be recognised as one of advocacy and facilitation, rather than simply cost control.

Managing expectations in a crisis

Policyholders often experience shock and distress after a disaster. For many businesses, claims resolution can mean the difference between survival and closure. Loss adjusters serve as both investigators and communicators, ensuring that customers understand the process, timelines, and realistic outcomes from the outset.

An immediate response is essential, and the industry’s ability to mobilise swiftly in times of crisis is critical. Even once the first phase of damage control subsides, the work of loss adjusters continues—navigating the complexities of reinstatement, repair, and negotiation while managing the expectations of multiple stakeholders.

One of the biggest challenges adjusters face is mitigating the frustrations caused by external factors. Rising construction costs, supply chain disruptions, and the shortage of alternative accommodation can significantly extend settlement times, and it’s the loss adjuster that often bears the brunt of policyholder dissatisfaction. Effective communication is paramount in these moments, reinforcing trust and guiding claimants through difficult decisions.

A balancing act

While insurers must maintain financial sustainability, effective claims management should never come at the expense of customer trust. Adjusters play a crucial role in ensuring that claims are handled fairly and in line with the contractual obligations of the policy, balancing cost management with policyholders’ genuine needs.

Conversely, loss adjusters must also be vigilant against inflated and fraudulent claims, ensuring that settlements remain equitable and justified. Whether dealing with contractors inflating repair costs or businesses overestimating losses, adjusters must apply their technical expertise to ensure fair outcomes.

Developing soft skills in adjusting

Insurance remains a people-centric industry, and technical expertise alone is not enough. Loss adjusters must possess strong interpersonal skills, which allow them to listen empathetically, manage difficult conversations, and build rapport with claimants in distress. Understanding a policyholder’s emotional state, tailoring communication approaches, and demonstrating patience are all key attributes in loss adjusting.

Looking forward

The role of loss adjusters in today’s insurance landscape is more important than ever. Their function extends beyond financial assessments; they are the bridge between insurers and policyholders, ensuring clarity, fairness, and trust in the claims process. While they may often be the bearers of difficult messages, they also provide invaluable guidance, helping businesses and individuals rebuild their lives in the aftermath of loss. In recognising their broader role, we must ensure that loss adjusters receive the support, independence, and professional development necessary to continue delivering both fair outcomes and compassionate service.

John Bissell is Executive Director of CILA