Category: Loss adjusting · Reviewed by Amy Price, Account Executive · Last reviewed 2026-06-11
An insurer’s panel adjuster is a loss adjuster, or adjusting firm, appointed under a standing panel arrangement with an insurer to handle a continuous flow of claims under agreed service standards, often with delegated authority.
Category: Loss adjusting Also known as: Panel adjuster, Approved adjuster, Panel firm adjuster Related concepts: Loss adjuster, Independent loss adjuster, Delegated authority, Service level agreement
An insurer’s panel adjuster is a loss adjuster — typically a firm rather than an individual — that has been appointed to an insurer’s panel of approved adjusters and receives a continuous flow of claims work from the insurer under defined service standards, fee arrangements and operational protocols. Panel arrangements are a fundamental feature of the UK general insurance market, particularly for volume household, motor and small commercial business.
Panel arrangements typically take the form of a written agreement between the insurer and the adjusting firm covering scope, service levels, fees, data protection, audit rights, complaints handling, termination and intellectual property. Where the panel adjuster handles claims under delegated authority — that is, with the power to make settlement decisions up to a financial limit without further reference to the insurer — the agreement will also cover binding authority, financial limits, sanctions, fraud screening and reinsurance reporting.
Most major UK insurers operate a small panel of adjusting firms (typically two to five) for each class of business, split by geography, complexity or specialism. The largest panels are typically held by Sedgwick (which acquired Cunningham Lindsey in 2018), Crawford & Company, Davies, McLarens and Charles Taylor Adjusting. Smaller specialist firms may also hold panel positions on niche classes, such as agricultural claims or fine art.
Panel adjusters typically operate to demanding service standards: first contact within 24 hours of instruction, inspection within 3 to 5 working days, regular updates to insurer and policyholder, and settlement within 30 to 60 days for volume claims. Their work is often integrated with the insurer’s IT systems, with electronic flow of instructions, documents and settlement decisions.
Insurer’s panel adjusters operate within an elaborate framework of contract law, FCA regulation and operational risk management. The principal contract is the panel services agreement, which is a business-to-business contract governed by the Supply of Goods and Services Act 1982 (section 13 implies reasonable skill and care) and the Consumer Rights Act 2015 where applicable. The agreement typically also covers indemnities, professional indemnity insurance requirements, sub-contracting, and termination on notice or for cause.
Where the panel adjuster handles claims under delegated authority, the arrangement engages the Financial Services and Markets Act 2000 (FSMA) framework. The panel adjuster will typically be authorised by the FCA in its own right to carry on “assisting in the administration and performance of a contract of insurance” under Article 39A of the FSMA 2000 (Regulated Activities) Order 2001. Alternatively, the adjuster may operate as an appointed representative under section 39 of FSMA 2000, in which case the insurer (as principal) is responsible for the adjuster’s regulated activities.
The FCA’s rulebook applies to delegated arrangements. Particularly relevant are SYSC (systems and controls), SUP 12 (appointed representatives), SUP 16 (regulatory reporting), and ICOBS 8.1 (claims handling). The FCA has issued specific guidance on outsourcing in the Finalised Guidance FG16/5, including expectations on due diligence, governance and exit planning.
The FCA’s Consumer Duty, in force from 31 July 2023, applies the four outcomes (products and services, price and value, consumer understanding and consumer support) to all firms involved in the customer journey, including panel adjusters handling retail claims. The Consumer Duty requires firms to act to deliver good outcomes for retail customers and to demonstrate this through monitoring and management information.
The Senior Managers and Certification Regime (SMCR) applies to authorised panel adjusters, with relevant senior managers holding statements of responsibility and certified staff certified annually as fit and proper.
For Lloyd’s market business, Lloyd’s Minimum Standard MS11 (Claims Management) and the Lloyd’s Claims Scheme apply, together with Lloyd’s Coverholder Rules where the panel adjuster has binding authority. Lloyd’s audits its coverholders on a defined cycle.
The CILA Code of Conduct applies to individual adjusters working within panel firms, requiring impartiality, competence and confidentiality. The application of the Code to delegated authority work was addressed in CILA’s Delegated Authority Guidance, which addresses the specific dilemmas of handling claims on the insurer’s behalf while remaining professionally impartial.
A panel arrangement typically begins with a competitive tender process. The insurer issues a Request for Proposal (RFP) setting out the scope, expected volumes, fee structure, service levels, technology requirements and contractual terms. Adjusting firms respond with detailed proposals, often supported by case studies, sample reports, management information and pricing models. The insurer evaluates the responses and awards panel positions to one or more firms, often with a defined allocation of work.
Once on the panel, the adjuster receives instructions through an electronic feed from the insurer’s claims management system. Each instruction includes the policyholder’s details, the claim details, the policy wording, the relevant limits and excesses, and the scope of the adjuster’s authority (delegated or report-only, with financial limits and exclusions). The adjuster’s case management system ingests the instruction and creates a file.
The adjuster then handles the claim under the agreed service standards. First contact is typically made by telephone within 24 hours, an inspection is arranged within 3 to 5 working days, and a first report is delivered to insurers within a week. For volume claims, the adjuster may have delegated authority to settle claims up to (for example) £25,000 without further reference; the report-and-recommend process for higher-value claims is documented in the panel agreement.
Throughout the claim, the adjuster operates to defined key performance indicators (KPIs): cycle time, customer satisfaction (typically measured via NPS scores), accuracy of reserves, leakage (over-settlement), reinstatement quality and complaint rates. Insurers conduct regular file reviews and audits, typically quarterly or semi-annually, with feedback fed into the adjuster’s improvement plan.
The fee structure varies. Volume household claims are typically paid on a fixed fee per case, with separate fees for different claim types (theft, escape of water, accidental damage, fire). Larger claims are typically paid on a time-and-expense basis, often capped or subject to a sliding scale. Some panel arrangements include performance-based fees or risk-share arrangements.
Panel arrangements have evolved significantly over the past 30 years. The traditional model was a “panel of adjusters” appointed by each insurer for general claims work. From the 1990s, panels became more specialised, with separate panels for household, motor, commercial and specialty business. The 2000s saw the rise of delegated authority models, in which the adjuster effectively operated as the insurer’s claims function for the relevant book, with extensive use of supply chain partners.
The 2010s saw a wave of consolidation in the adjusting market, with Cunningham Lindsey acquired by Sedgwick (2018), Crawford & Company expanding internationally, and a number of mid-sized firms either merging or being acquired. This consolidation reduced the number of available panel firms, prompting some insurers to develop captive in-house adjusting teams as an alternative.
The 2020s have seen the rise of “preferred supplier” arrangements that blur the line between panel and independent adjusting. Under these arrangements, an insurer may engage a small number of preferred firms across multiple classes, with flexible allocation of work and joint planning of strategic initiatives. The use of technology — particularly AI-assisted triage, video inspection and digital settlement — has further changed the operational model.
Specialist panels exist for particular classes. Commercial property panels typically include three to five firms with surge response capability. Motor panels include adjusters with engineering qualifications and links to repair networks. Catastrophe panels are pre-positioned to scale rapidly in the event of a major event. Cyber panels include adjusters with incident response and forensic accounting capability.
A particular variant is the “approved panel” of Lloyd’s, maintained by Lloyd’s for the purpose of instruction by managing agents under the Lloyd’s Claims Scheme. The Lloyd’s panel is broader than a typical insurer panel and reflects Lloyd’s role as a market rather than as a single underwriter.
Panel adjusters must be distinguished from in-house claims teams (employed directly by the insurer) and from independent instructed adjusters (engaged case-by-case). The distinction is not always clean in practice, as firms may operate in all three modes simultaneously.
A major UK personal lines insurer issues an RFP for its household property panel, seeking three firms to handle approximately 60,000 claims per year split equally. The RFP specifies a fixed fee per case, delegated authority up to £15,000, service standards including 24-hour first contact, 96% customer satisfaction target, and full integration with the insurer’s claims management system.
Three firms — Sedgwick, Crawford & Company and Davies — win panel positions and divide the work equally. Each firm operates a dedicated team of adjusters and surveyors, with technology-enabled handling including video inspection for low-complexity claims and same-day settlement for simple escape of water and accidental damage claims under £5,000.
Three years into the contract, the insurer conducts a strategic review. Customer satisfaction averages 92% across the three panel firms (against a target of 96%), with one firm consistently performing below the others on first contact times. The insurer’s claims operations director engages the under-performing firm in a performance improvement programme, with a 90-day plan to improve first contact times, video inspection adoption and complaints handling. After six months, performance improves but the insurer chooses not to renew the firm’s panel position at the end of the contract, replacing it with another national firm.
The episode illustrates how panel arrangements operate in practice: continuous performance measurement, structured improvement processes and ultimately competitive renewal. It also illustrates the operational integration between insurer and adjuster that distinguishes panel work from independent adjusting.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Next review: 2026-12-11.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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