Why UK/International Adjusting is still relevant in the London Market in 2024

The London market contributes £49 Billion to the UK GDP. In addition, the Insurance market for speciality insurance classes accounts for 43% of the global market share (Source: London market Data pack 2024)

Lloyds alone has reported £46.7 Billion in gross premiums, operating in over 200 territories, and a network of over 4,000 professionals within London, it’s vital that the UK Insurance Market has access to the very best Loss Adjusters with International experience.

The concept of Home/International Adjusting in the UK has been perceived to be less relevant in recent years, to many as a result of several factors:

• Adjusting firms opening offices in local jurisdictions
• The cost for Insurers - flights/hotels etc
• Improvements in remote adjusting techniques, especially following the pandemic
• The perceived lack of local knowledge/customs/laws
• Language barriers
• The maturing of local Insurance industries

That said, the art of international claims handling by London based Adjusters remains pivotal to London based Insurers/Re-insurers and Brokers, given that London remains a major International hub for the global Insurance market as outlined above.

Typically, local markets will appoint “domestic” adjusters to act on their behalf. In many cases this remains the most economic and sensible option. However, in certain circumstances, Insurers/Re-insurers interests are not always best served by the adjuster appointed.

As a consequence, on occasion, this may result in Insurers/Re-insurers not being provided with all the relevant and/or material facts that may determine policy coverage. A lack of expertise (on a relevant matter) may result in the final indemnity spend being greater than the true entitlement or vice versa. In some instances the local adjuster is not aware of the re-insurance contract wording, contributing to difficulties during the claims process.

For large and complex International claims, it is vital that Insurers/re-insurers consider the appointment of an experienced London based Adjuster to oversee the local adjuster (or handle the claim independently for re-insurers,) to ensure that their interests are fully managed and protected.

As an example, in some locations the choice of a Forensic Expert in a particular field may be limited, and accordingly the correct expert is not engaged at the outset of a loss. This could ultimately have implications for the direction of the claim, in terms of causation, coverage and subrogation aspects. These pitfalls could arguably be avoided if an Adjuster from the UK is engaged, as the adjuster will be able to select a party (from overseas if required) from a wider panel of experts, utilising local knowledge where appropriate.

Feedback from London based Re-Insurers who have not appointed a UK based Adjuster includes:

• Concerns with familiarity of local adjuster and Insured.
• Local adjusters not being familiar with the Reinsurance contract.
• The perceived inability to have discussion with the Adjuster in “confidence”.
• Reports - no meaningful London Market content, insufficient detail on causation, subrogation overlooked, agreement on next steps not clear, inability to opine/comment on facts which are relevant to the claim.
• A general lack of proactivity to drive the claim to a resolution.

In conclusion, for high value or complex losses, the cost of appointing a UK based Adjuster will fully justify the costs involved. In many circumstances the value added will ensure that the loss is properly managed, all stakeholders are fully informed and any indemnity agreed, is in compliance with the terms and conditions of the policy.

Specialist Lines International has experienced adjusters who have worked and lived abroad, with experience in Major and Complex losses across the following locations locations:

For further information on our services, or to discuss your requirements further, please get in touch.