How to become an insurance claims adjuster in Canada

The claims adjuster is a critical part of the insurance industry. It’s the claims adjuster’s role to investigate insurance claims made by clients and assist insurance companies in determining how much they must pay.  

Whenever a policyholder has a loss, meaning their home, car, or other insured property is damaged, they notify their insurance provider to get compensation for the property damage. This is where the claims adjuster steps in. It’s their job to investigate the policyholder’s claims and determine its authenticity. Claims adjusters are necessary to ensure that the insurance company is not being defrauded. 

Those who want to get into this profession will not lack for interesting challenges. The job requires a keen eye for detail, critical thinking, empathy, and communication and analytical skills. And since the role protects insurance companies from fraud and saves them money, the salary of a claims adjuster can be significant. 

In this guide on how to become a claims adjuster in Canada, those interested in entering the profession will get answers to crucial questions like:  

• How do I become an insurance claims adjuster? 
• How can I become an insurance claims adjuster online? 
• How do I become an insurance claims adjuster with no experience?  

Insurance Business will shed light on these and more, so let’s dive right in. 

Understanding the role of claims adjuster 

It’s important to know what an insurance or claims adjuster’s role is in the industry. Their primary job is to investigate claims and determine if the claims are authentic. Once the legitimacy and authenticity of a claim has been established, the adjuster calculates how much the insurance company must pay policyholders to cover their claims.  

Apart from confirming claims’ legitimacy, adjusters help determine the amount of a claim settlement. Insurance claims adjusters work in many insurance lines, including automobile, health, life and property. Part of their job includes: 

• Interviewing all the parties concerned with the insurance claim 

• Interviewing any witnesses who were present when the damage, accident, or loss occurred 

• Requesting for and reviewing police and medical reports related to the claim 

• Gathering all documentation that supports or undermines a claim, including witness’s statements, photographs, records, and prior claims if any exist 

• Checking the terms of an insurance policy to determine the nature and extent of coverage 

• Collecting all the relevant information and compiling them in a report for the insurance company 

• Notifying all the parties affected by the claims decision 

Educational requirements 

Typically, aspiring insurance claims adjusters must have completed secondary school. There is no formal educational prerequisite to become an insurance claims adjuster in most provinces of Canada. However, candidates can obtain a university degree prior to taking the adjuster licensing exams.  

Many potential employers may prefer candidates that have a university degree. Having a degree signifies that the candidate has obtained the foundational knowledge and perhaps developed a few skills related to insurance.  

Unique requirements in some provinces 

While there are many procedures in the insurance adjuster licensing process that are common for all provinces, there are some that have unique requirements. These are the provinces that have special requirements for insurance adjuster licensing:  

Alberta 

The Alberta Insurance Council requires candidates to pass an exam and get a Level 1 adjuster credential, on-the-job training, and the successful completion of specific insurance courses.  

Read next: How to become an insurance adjuster in Alberta: A guide for beginners

British Columbia 

BC requires adjuster candidates to complete the Council Rules Course as a pre-licensing requirement. This change was instituted in March of 2019. Aspiring adjusters must also pass a background check and submit their applications via online portal.  

Manitoba 

Completing required courses then obtaining an adjuster’s licence from the Insurance Council of Manitoba is how you become an adjuster in this province.  

New Brunswick 

This province recently updated its policy on adjusters, reducing the number of levels of licenses to streamline the process.  

Ontario 

Those who decide to become staff adjusters at a registered insurance company need not apply for a licence here. But should you choose to become an independent or public adjuster, the application process for a claims adjuster licence here is quite comprehensive. Technically, there are three levels. Here’s what’s involved:  

1. Obtaining a Letter of Authority – This is the first step and level for aspiring insurance adjusters, signifying the beginning of their education and training. Candidates can obtain this letter when they are sponsored by an adjusting firm.  

2. Obtaining a probationary adjuster licence – To advance to this level, candidates must successfully complete these courses:  

• C11 – Principles and Practices of Insurance 

• C12 – Insurance on Property  

• C14 – Automobile Insurance, Part 1  

• C110 – Essentials of Loss Adjusting  

3. Obtaining a full adjuster licence – Finally, to obtain the adjuster licence, candidates must take these courses, apart from successfully completing the Canadian Independent Adjusters’ Association (CIAA) exam:  

• C13 – Insurance Against Liability Part 1 

• C32 – Bodily Injury Claims 

• C111 – Advanced Loss Adjusting 

• C112 – Practical Issues in Claims Management  

Note that aspiring independent and public insurance adjuster candidates who fulfill all these requirements may then apply for a licence with Financial Services Regulatory Authority of Ontario (FSRA). However, adjusters who work for a registered insurance company need not apply. 

Québec 

Specific training courses and obtaining a licence from Autorite des Marches (AMF) is how you become an insurance adjuster in this French-speaking province. 

Saskatchewan 

After completing the necessary educational courses, aspiring adjusters must obtain the appropriate licence from the Financial Services Commission of Saskatchewan. 

Step-by-step licensing and certification process 

There are several steps involved in how to become an insurance claims adjuster in Canada. To get your licence and begin to work, here’s what’s involved:  

Step 1. Have the minimum educational requirements.  

While the minimum requirement is for candidates to have a high school diploma or GED equivalency, there is no rule that says you cannot obtain a university degree. A degree is not mandatory, but it can help you stand out from other candidates if you apply as an adjuster at an insurance company or insurance adjusting firm. Obtaining a bachelor’s degree can also give you the foundational skills and knowledge in preparation for your insurance adjuster career. 

The most relevant and helpful degrees for aspiring insurance adjusters include:  

• Business  
• Communications 
• Finance 
• Management 

Step 2. Decide on your area of adjuster specialization.  

As with becoming an insurance agent or becoming an insurance broker in Canada, there are different types of insurance adjuster roles. You can choose to be either:  

• an independent adjuster 
• a staff adjuster at an insurance company or insurance adjusting firm 
• a public adjuster who works directly with clients  

Knowing and deciding which type of adjuster you want to be early on can help you map out your career path. This can give you a clearer picture of what to expect and which clients and firms to seek out to expand your professional network.  

Step 3. Fulfill the licence requirements of your state and obtain your licence. 

Most Canadian states and provinces require that adjusters earn their licence. To qualify, you would typically have to take a prelicensing course. There are several course providers available that make it possible for you to study online or take in-person classes – choose whichever mode that suits you.  

If you want to work outside of your province, you must obtain a reciprocal licence in the region that you would like to operate in. Be sure to research the licensing requirements for your jurisdiction thoroughly to avoid confusion or wasting your time and effort.  

Here are some of the provinces and territories that may have special licensing requirements for claims adjusters, and their relevant regulatory bodies:  

Step 4. Do what’s required to maintain your licence.  

Regular licence renewal and earning Continuing Education (CE) credits are necessary for keeping your insurance adjuster’s licence. CE credits may be earned via online or in-person classes. Each jurisdiction can have varying requirements for maintaining your licence, so do your due diligence and make sure to follow the licence renewal and maintenance procedures.  

Types of insurance adjusters in Canada 

There are three common insurance claims adjuster career paths you choose from:  

1. Independent Adjuster 

This is an adjuster who works as a contractor for different insurance companies or third-party organizations. Independent adjusters are unique in that they are directly hired by insurance companies to investigate claims and assist them in deciding on claims.  

Independent adjusters are often called upon whenever catastrophes like hurricanes, fires, or other similar disasters that impact a lot of people. In fact, the last four disasters caused record-breaking numbers of claims in the country’s history. As an independent adjuster, you’re required to be at ground zero of such disasters, so this can be a good job for adventurous workers. 

2. Staff Adjuster 

This is the most common type of insurance claims adjuster. A staff adjuster works full time as part of an insurance company’s workforce and handles the claims for the ’s clients. The most common type of staff adjuster is the auto insurance adjuster, whose work largely involves investigating claims arising from car accidents. Staff adjusters can also work on claims on life insurance, medical insurance, and property insurance.   

3. Public Adjuster  

These adjusters work directly with insurance policyholders. Public adjusters are typically hired by people who are dissatisfied with their insurance settlement or believe the settlement was unfair. For instance, if a person had a car accident and their insurance company refused to pay for the damages, that person may hire an independent adjuster. It’s the public adjuster’s role to assess the claim and obtain payment for the damages on behalf of their client.  

The skills required for an insurance claims adjuster 

To become a successful claims adjuster, candidates must have or develop certain skills, which include:  

1. Communication skills 

Insurance adjusters deal with a lot of different people, such as insurance policyholders, witnesses in a policy claim, and insurance companies. Having the ability to communicate effectively is important, as this ensures that everyone involved in a claim gets accurate, objective, and up-to-date information.  

Insurance adjusters must be adept at communicating orally and in writing. 

2. Computer skills 

Insurance claims and the jobs of claims adjusters nowadays require heavy use of computers and software programs. Many insurance companies use e-mail and other means to deliver claims updates and estimates, so it’s essential for adjusters to know how to use computers. The capacity to use email, office software for creating documents and using claims adjusting software are invaluable in your claims adjuster career.  

3. Time management skills 

There can be instances where you’ll be handling several insurance claims at once. That’s why being able to manage your time efficiently is a valuable skill for insurance adjusters to have. Time management is especially important for independent adjusters working on disaster claims, since many such claims will be time-sensitive.  

What’s the average salary of an insurance claims adjuster in Canada? 

As of 2024, the average salary for a claims adjuster in Canada is in the range of $61,000 to $92,000 a year with a median salary of $88,855. However, as with many other jobs, salaries can be higher or lower due to certain factors like:  

Location 

Adjuster salaries vary across provinces and cities due to differences in the cost of living and demand for claims adjusters’ services in their area. For example, claims adjusters have higher salaries in more urban areas like Toronto and Vancouver compared to their more rural counterparts.  

Type of employer 

Adjusters who work for larger insurance companies or adjusting firms will typically pay more compared to smaller companies or agencies.  

Level of experience 

As with most professions, entry-level claims adjusters’ salaries will be considerably less than salaries of more experienced and skilled adjusters. Entry-level adjusters can earn an average of $50,000 a year while experienced adjusters with several years under their belt can earn upwards of $90,000.  

Insurance adjuster salaries by experience level 

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Claims adjuster salaries by location 

Your choice of insurance profession isn’t limited to either an insurance agent or insurance broker. The role of insurance claims adjuster can be as fulfilling as the two most popular insurance jobs. It’s also an essential role for insurers and insureds alike. And for those who like to dabble in technology, new devices like drones are making data-gathering easier, safer, and less tedious for insurance companies and adjusters. 

Read next: What is the average salary of an insurance agent in Canada?

Did you find this guide on how to become an insurance claims adjuster helpful? Let us know in the comments if you decide to pursue this or another insurance role.