The Chartered Institute of

Loss Adjusters & the Role of

an Adjuster
Malcolm Hyde BSc (Hons) Dip (Fr) FCII FCILA, Executive Director, CILA
Origins of our profession
• Great Fire of London – churchwardens, surveyors, agents & assessors
• World Wars I & II
• 1940, formation of the Fire Loss Adjusters Association
- Rules of practice & professional etiquette
- Associate, not less than 27 years old, satisfy Council of technical ability to adjust fire
losses and 5 years consecutive experience
- Reserved occupation

• 1949, first Associate to be elected by examination

• 1961, Royal Charter granted
CILA Today
• Current membership – 4,500
• 1,050 Chartered members
• 130 Advanced Diploma
• 100 Diploma
• 680 Certificate
Guide to professional conduct
• Ethical standards
• Conflicts of interest
• Courtesy and consideration
• Confidentiality
• Technical expertise
• Complaints
• Professional Conduct Committee
Continuing Professional Development

• Members are required to keep up to date with knowledge

• Requirement is objective based and requires 35 hours in
each 12 month period
• CILA events - conference, seminars, webinars
• CILA resources – membership magazine, technical
library, text books
What skills & knowledge are required to
resolve claims successfully?

‘two-eights knowledge of values, two-eights common sense and

five-eights tact, without which he would be a failure”
Krailing, 1922, Fire Claims from an Assessor’s Point of View
What is a Loss Adjuster (cont’d)

• Fairly and justly

• Paid by Insurers
• Or retained by Policyholder
• Fees
Dealing with a claim
Pre Visit
• Preparation for the Visit
• Documentation
• Validation Process
• Welfare
• Trace and access
• Disaster Management
– What to do before the Loss Adjuster arrives
• Making Safe/Secure
• Boarding Up
Dealing with a Claim (Cont’d)
Meeting with the Customer Policyholder

Purpose
• To establish the nature of the risk
– Moral & Physical Features
– Value at Risk
– Warranties and Special features
• To establish the background &
circumstances of incident so that
we can determine whether or not
there is an admissible claim
under the Policy
Meeting the Policyholder
Purpose
• To obtain sufficient information to enable quantum to be established
and agreed.

• Identify other possible losses – Loss of Profit, Increase Cost of

Working.

• To establish whether there are any grounds for potential recovery of

Insurers eventual outlay and secure relevant evidence – i.e, protect
subrogation rights.

• Agree a plan of action and ensure good communication channels

Fire
• Definition of Fire
– Actual ignition
– Something on fire that should not be
• Time day & date of discovery – whom/how
• Circumstances
• Point of origin
• Cause
• Spread & Stop
• Extinguishment
• Nature & extent of damage
• Adequacy of sums insured
Fire
Initial measures
• What can the Policyholder do
• Making safe
• Making weather tight
• Emergency repairs
• Arranging salvage and cleaning
• Notes and photographic record
• Advising on alternative premises
• Agree procedures for permanent repairs
Fire
Third Party Aspect
• Liaise with Fire Brigade
• Secure physical evidence
• Photographic evidence
• Take witness statements
• Consider obtaining forensic
report
Relationships
• Supply Chains
• Relationships
–Landlord
–Broker
• Emergency Repairs
• What can they do before the Loss Adjuster arrives
• Loss Adjuster to present your claim
Claims scenario – New instruction
• Fire in electroplating factory located on an industrial site in a home
counties commuter town
• Policy cover – typical policy wording with warranties common to
this industry, perils covered
• Who is involved? – policyholder, broker, underwriter, reinsurer,
loss assessor, accountant, solicitor, plus customers and suppliers
of the policyholder
• Proximate cause?
• Extent of damage? Plant, machinery and stock involved
• Reserve? Mitigation measures?
Circumstances

New findings
• Suspicion that worker deliberately left on the plant as she was
under disciplinary proceedings
• Protect insurers’ interests?
• Appointment of forensic investigator establishes faulty thermostat
Other factors to consider
• The company are subcontracted to make jewelry for a well known
brand who do not want it known that this work in not undertaken in
the Alps as suggested by their advertising and brand name
• Statement needed from operative who is nervous of any suggestion
of blame
• Busy period for company as working on stock for Christmas
• There is insurance cover for Business Interruption
• Need to calculate loss and indemnity according to the policy wording
• Liaison with Fire and Police services
• Is fraud ruled out?
CILA and Loss Adjusters
Malcolm Hyde BSc (Hons) Dip (Fr) FCII FCILA, Executive Director, CILA