Category: Loss adjusting · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-11
The Chartered Institute of Loss Adjusters (CILA) is the principal professional body for loss adjusters operating in the United Kingdom, founded in 1941 and granted a Royal Charter in 1961.
Category: Loss adjusting Also known as: CILA, The Institute, Chartered Institute of Loss Adjusters Related concepts: Loss adjuster, Chartered Loss Adjuster, Independent loss adjuster, Claims handling
The Chartered Institute of Loss Adjusters (CILA) is the recognised professional body in the United Kingdom for individuals engaged in loss adjusting. Its purposes, as set out in its Royal Charter and By-laws, include promoting and advancing the science and practice of loss adjusting, maintaining high standards of professional conduct, providing education and qualifications, and representing the profession to insurers, government, regulators and the public.
Founded in 1941 as the Association of Fire Loss Adjusters, the body adopted the name Chartered Institute of Loss Adjusters when it was granted a Royal Charter by Her Majesty Queen Elizabeth II in 1961. The Charter and By-laws constitute the Institute’s governing instrument and are supplemented by Regulations, the Code of Professional Conduct and the Professional Standards. The Institute is governed by a Council elected by members and led by a President who serves a one-year term.
CILA membership is graded by qualification and experience, with the highest grades reserved for those who have passed the Institute’s examinations and demonstrated significant practical experience. The progression — from Affiliate through Associate (ACILA), Member (MCILA) and Fellow (FCILA) — is one of the principal recognised career paths in UK claims handling. Use of the designation “Chartered Loss Adjuster” is restricted to qualified members in good standing and is protected by the Royal Charter.
The Institute also undertakes work of broader importance to the insurance market: it publishes guidance on technical issues such as business interruption, surge management, building reinstatement and large-loss protocols; it engages with regulators including the FCA and Lloyd’s; and it represents the UK profession internationally through bodies such as the Federation of European Risk Management Associations and the International Federation of Adjusting Associations.
The Institute is constituted as a Royal Chartered body. The Royal Charter granted in 1961, together with the Institute’s By-laws, has the force of law in defining the Institute’s constitutional structure, its objects, its membership grades and its powers to discipline members. Amendments to the Charter or By-laws require the approval of the Privy Council; amendments to the Regulations and Code of Conduct can be made by Council.
CILA is not itself a regulator under the Financial Services and Markets Act 2000. Instead, it operates as a professional body whose members are bound by its Code of Conduct as a matter of contract and membership rule. Where members carry on FCA-regulated activities — for example, “assisting in the administration and performance of a contract of insurance” under article 39A of the FSMA 2000 (Regulated Activities) Order 2001 — they remain subject to the FCA’s authorisation, supervision and enforcement regime in the usual way. Membership of CILA does not exempt an adjuster from FCA rules.
The Institute’s Code of Professional Conduct sets out duties of integrity, competence, confidentiality, independence and fair dealing. A member who breaches the Code may be subject to investigation under the Disciplinary Regulations, which provide for a Disciplinary Panel and Appeals Panel and for sanctions ranging from caution and fine to suspension and expulsion. Decisions are reportable on the Institute’s register and may be cited in subsequent FCA or court proceedings.
CILA also operates a Continuing Professional Development (CPD) regime under which all qualified members must complete a minimum number of structured and unstructured CPD hours each year, recorded online. Failure to meet CPD requirements can lead to loss of qualified status. This regime aligns with the FCA’s expectations on competence under SYSC 3 and SYSC 5 and supports the application of the Senior Managers and Certification Regime to adjusting firms within scope.
The Institute works closely with Lloyd’s of London on the Lloyd’s Claims Scheme and on the appointment of approved adjusters. It collaborates with the Association of British Insurers (ABI) and the Chartered Insurance Institute (CII) on cross-industry initiatives, including the Flood Re scheme and the surge response arrangements for major catastrophes such as the 2007 floods, the 2015 Cumbria floods and the 2022 storm season.
The day-to-day work of the Institute revolves around three main streams: qualification and CPD, technical work and member services, and disciplinary regulation. The qualification pathway is administered through an examinations regime open to members, with examinations sat under invigilated conditions twice a year. Examinations are organised by topic — property, liability, business interruption, law of insurance — and lead to qualification as Associate, Member or Fellow depending on level achieved and practical experience demonstrated.
The Institute’s technical Special Interest Groups (SIGs) bring together experienced practitioners to publish guidance and run seminars on subjects such as flood claims, fire investigation, business interruption, fraud, fine art and casualty. These SIGs are widely consulted by insurers, reinsurers, regulators and the courts and are routinely cited in expert evidence.
A typical CILA member spends part of their year attending technical update sessions, regional events and the annual conference, which is held in a major UK city and attended by around 1,000 delegates from across the insurance market. The annual CILA Awards recognise excellence in claims handling, technical work and customer service.
When a complaint is received about a member’s conduct, the Institute applies a multi-stage disciplinary process: initial assessment by the Conduct Committee, formal investigation, referral to a Disciplinary Panel for hearing, and a right of appeal. Sanctions are published in summary form on the Institute’s website and notified to relevant employers. The Institute also acts as an expert resource for the FCA, the Financial Ombudsman Service and the courts when issues of professional standards arise.
The Institute maintains a public register of qualified members which is used by insurers and policyholders to verify status. The register distinguishes between Affiliate, Associate, Member, Fellow and Chartered Loss Adjuster grades and notes any disciplinary action.
While CILA is the dominant professional body for UK loss adjusters, the wider professional landscape includes several related and overlapping organisations. The Chartered Insurance Institute (CII) is the principal body for insurance professionals more broadly, including underwriters, brokers and claims staff who are not specialist adjusters; many CILA members also hold CII qualifications such as the Advanced Diploma in Insurance (ACII) or the Diploma in Insurance Claims Handling.
The Institute of Risk Management (IRM) covers risk professionals, with whom adjusters frequently collaborate on large commercial losses. The British Damage Management Association (BDMA) accredits damage management technicians and is closely linked to the supply chain on which adjusters rely. In the marine sphere, the Association of Average Adjusters administers the qualification of practising average adjusters in general average and salvage matters; some marine loss adjusters hold dual qualification as average adjusters.
Internationally, CILA collaborates with the European Federation of Loss Adjusting Experts (FUEDI) and the National Association of Independent Loss Adjusters (NAILA) on cross-border training and standards. Several large adjusting firms — Sedgwick, Crawford & Company, Charles Taylor Adjusting, McLarens and Davies — operate globally and their UK adjusters routinely work with adjusters in other jurisdictions where local professional bodies may differ. The Singapore Insurance Institute, the Australasian Institute of Chartered Loss Adjusters and the National Association of Public Insurance Adjusters in the United States are examples of equivalent or related bodies.
CILA’s status as a chartered body distinguishes it from non-chartered associations. The chartered designation reflects a higher level of public recognition and confers responsibilities on the Institute to act in the wider public interest, not merely in the interest of its members.
A senior claims director at a Lloyd’s managing agent is preparing to instruct an adjuster on a £20 million complex commercial fire claim involving an international manufacturing group. Before issuing instructions she searches the CILA member register, confirms that her preferred adjuster is a Fellow (FCILA) and holds Chartered Loss Adjuster status, and reviews the adjuster’s technical specialisms and recent CPD record. She also confirms that the adjuster’s firm appears on the Lloyd’s-approved list under the Lloyd’s Claims Scheme.
A year into the matter, a dispute arises between the policyholder and insurers about the adequacy of the adjuster’s investigation into a stock-loss claim. The policyholder’s broker writes to CILA suggesting that the adjuster has failed to act impartially. The Institute opens a preliminary inquiry under its Disciplinary Regulations. After review, the Conduct Committee concludes that the adjuster acted within the bounds of professional conduct, although it issues guidance on the timeliness of communications. The decision is recorded and shared with the parties; the matter does not proceed to a public Disciplinary Panel hearing.
The episode illustrates both the substantive standards CILA enforces and the procedural seriousness with which complaints are treated, reinforcing the Institute’s role as the guardian of professional standards in UK loss adjusting.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Next review: 2026-12-11.
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