Category: Claims handling · Reviewed by Simon Temme, Account Executive · Last reviewed 2026-06-11
Loss adjuster appointment is the act of an insurer (or its delegated handler) instructing an independent or panel loss adjuster to investigate the facts of a property, business interruption, marine, casualty or specialist claim and to recommend on coverage, quantum and settlement.
The loss adjuster is the insurance industry’s independent fact-finder. They visit the site, interview witnesses, gather and analyse documentary evidence, instruct sub-contracted experts (surveyors, engineers, forensic accountants, fire investigators), produce a written report and recommend on coverage and quantum. They sit at the centre of any claim of significant property or business-interruption value.
Appointment formalises the instruction. It identifies the adjuster (firm and individual), the scope of work, the timescale and the reporting cadence, the fee basis and the authority limits. Standard appointment templates exist in the market but are usually tailored to the specific claim.
In England the established adjusting firms include Sedgwick, Crawford, McLarens, Charles Taylor and Davies, each with specialist teams across property, casualty, marine, aviation, energy and specie. There is also a strong independent adjusting market — smaller firms and sole practitioners holding Chartered Loss Adjuster (FCILA) status — used particularly for complex or sensitive matters where independence from any large insurer relationship is valued.
There is no statute that requires an adjuster to be appointed; the practice is operational rather than legal. But the Chartered Institute of Loss Adjusters (CILA) sets professional standards for its membership, and CILA-credentialled adjusters operate under a code of conduct that includes independence, objectivity, competence and confidentiality. Most insurers will only appoint adjusters from approved panels with at least one CILA-credentialled handler on the file.
Where the adjuster acts in a regulated activity (rare, but possible if the adjuster takes settlement decisions on the insurer’s behalf), they may be operating under the insurer’s FCA permissions. Most adjusters operate purely as the insurer’s agent for investigation and report; the substantive decisions are made by the insurer.
The Chartered Insurance Institute’s claims qualifications (CII Cert CII and ACII pathways) and the CILA’s qualifications (Cert CILA, Dip CILA, ACILA, FCILA) provide the recognised professional structure. For specialist losses — major property, business interruption, energy, marine, cyber — appointment to chartered or specialist-credentialled adjusters is the market norm.
For consumer claims, the appointment of an adjuster engages the FCA’s ICOBS 8 obligations on the insurer. Where the adjuster delays the claim, fails to communicate properly with the policyholder or produces a report that the policyholder disputes, the insurer remains responsible to the policyholder for the claim outcome. The insurer cannot pass that responsibility to the adjuster.
Adjuster appointments are usually made within 24 to 72 hours of FNOL for property losses, and within a week for casualty or specialist losses. The appointment is by email or through the insurer’s adjuster-instruction platform, attaching the policy, the FNOL papers and any preliminary investigation work.
The appointment scope normally includes site attendance (with target date), preliminary report (typically within 14 to 21 days), supplementary investigation as required, interim payment recommendations, final report and settlement recommendation. Authority limits are set explicitly: the adjuster may have authority to settle small property claims directly up to a stated limit, with insurer approval required above that.
For major losses the appointment includes appointment of sub-experts. The adjuster — not the insurer — will typically instruct the structural surveyor, the forensic accountant for the BI claim, the fire investigator, the salvage company. The adjuster acts as project manager for the claim investigation; the insurer reviews their reports and takes the substantive decisions.
Fee bases vary. Many insurer-adjuster relationships are on a fixed-fee or hourly-rate basis governed by a panel agreement. For complex losses the fee is typically time-charge with a cap subject to review. For independent appointments outside panel arrangements the fee may be a percentage of the eventual settlement (with safeguards to avoid incentivising over-settlement).
In professional indemnity and other claims-made business the adjuster role is much smaller; the panel solicitor takes the equivalent project-management role. Adjusters are common in property, BI, marine, aviation, energy, specie and certain cyber-related coverages (business interruption from a cyber event, contingent property damage).
A “delegated authority” appointment gives the adjuster substantial settlement authority. A “loss assessor” — different from a loss adjuster — acts for the policyholder, not the insurer; many policyholders mistakenly call any adjuster a “loss assessor”, but the roles are not the same.
A “joint appointment” sees insurer and policyholder agree to appoint a single adjuster jointly, with reporting to both parties; this is occasionally used in complex marine and energy claims.
For Lloyd’s business, the appointment is usually made by the slip leader on behalf of the following market, with cost shared in proportion to line size.
In catastrophe response, adjusters are deployed in surge teams under “cat protocols” — pre-agreed arrangements that allow rapid mass deployment with simplified instructions, often using contracted overseas surge support during peak UK demand.
A national retailer’s flagship store suffers a major fire on the eve of a bank holiday. The retailer’s broker FNOLs the leading insurer at 22:14 on the night of the fire. By 08:30 the next morning the insurer has appointed a chartered loss adjuster from a Tier 1 firm with a major-loss credential. The adjuster attends site at 11:00 with a fire investigator and a structural surveyor, instructs a forensic accountant for the BI quantification by 14:00, and convenes a meeting with the retailer’s finance director and broker at 16:30. A preliminary reserve of £18 million is recommended at the end of day 1 (£8m property, £10m BI/fees/ICW). The adjuster produces a preliminary report within seven days, a substantive report at 30 days, and supplementary reports thereafter. The insurer pays interim payments of £3m at week 2 and £6m at week 5 against contractor mobilisation and lost gross profit. The final settlement at £22.4m closes 14 months later.
By Matt Bartlett, Director, on 2026-06-11. Next review: 2026-12-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
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