The year 2020/21 was extraordinary in the history of the Institute. The challenges and uncertainties presented by the Covid-19 pandemic created a unique environment not only for AICLA, but all businesses. Covid-19 has had major repercussions on how we act professionally and at a personal level. AICLA and its members have proven to be adaptable, moderating how we function to meet the new challenges. For the profession in Australia, there has been profound change with the implementation of recommendations for the handling and settlement of insurance claims. Notwithstanding the challenges, the year was a success on many fronts, with an increase in membership, significant investment in representing loss adjusters, provision of guidelines regarding the new regulatory framework in Australia and development of Code of Practice guidelines.
MEMBERSHIP
Membership stands at 979 (945 in 2020), the highest number in the history of the Institute. See Figure 1.
Divisions are located in Australian states, New Zealand and Asia. A total of 78 members joined AICLA during 2020/21 (67 in 2019/20). The International Division, predominantly made up of members based in Asia, is the largest division with 269 members from 22 countries. It was pleasing that there was significant growth in membership in a number of Australian Divisions and the International Division during the year.
AICLA receives strong support from loss adjusting firms who encourage their staff to be members of AICLA and complete loss adjusting studies. It is important that those entering the profession continue to undertake studies in the Diploma of Loss Adjusting course offered by ANZIIF to equip them to meet the challenges in a fast-changing business environment.
Figures 2 and 3 provide the break-up of membership by Divisions and Classes of Membership. Classes of Membership are divided into five principal categories Fellow, Associate, Affiliate, Ordinary and Provisional.
The membership structure requires Provisional members, within three years from the date of joining, to complete studies to progress to Affiliate membership. This has helped support the healthy level of enrolments in the ANZIIF Diploma of Loss Adjusting.
The membership criteria allows for loss adjusters who are highly experienced and academically qualified to join as Affiliate members. Also, loss adjusters can advance to Affiliate membership via Recognition of Prior Learning (RPL). The pathway to Associate membership was changed during the year and now requires qualification by examination. The pathway to Fellowship recognises Associate members of long standing.
AICLA is aware of the need for loss adjusting organisations to attract and retain employees. AICLA supports the efforts of employers through the tiered flexible membership structure, career packs and targeted training courses including the ANZIIF Diploma of Loss Adjusting course, seminars, webinars, workshops, conventions and on-line tutorials. Data is collected on the age of members, and we track over time membership trends.
Members under 45 years total 34% and females represent 13% of membership. See Figure 4. Females account for 25% of enrolments in the Diploma of Loss Adjusting in 2020. The vast majority (70%) of students in the Diploma are under 40 years of age.
Education & Training
The key to success in any profession is to have strong educational and training standards. AICLA, in conjunction with ANZIIF our preferred education provider, has in place the highly regarded Diploma of Loss Adjusting study course, which forms the basis for advancement within AICLA. The Diploma training package has recently been reaccredited under the Australian Qualifications Framework (AQF). It remains contemporary and the leading course for those working in loss adjusting and others seeking a career in loss adjusting. Diploma subject enrolments for the 2020 calendar year were 420 (410 in 2019), see Figure 5. Enrolment statistics do not include two ANZIIF skills units. Enrolments for the first six months of 2021 are well ahead of the same period in 2020.
AICLA and ANZIIF are transitioning the Diploma modules to skills units. This will bring about a re-alignment between the Diploma of Loss Adjusting course and AICLA membership pathways. AICLA Subject Matter Experts (SMEs) are working with ANZIIF design specialists to develop the new skills units. Full details of the membership pathways are contained in the document Qualifications and Rights for Classes of Membership available on the website www.aicla.org.
AICLA’s mid-tier qualification, the Certificate in Loss Adjusting Practice comprises modules from the Diploma of Loss Adjusting. Completion of this certificate entitles a member to Affiliate membership status.
AICLA continues to promote to members the importance of achieving Chartered Loss Adjuster status. During the year 40 (32 in 2019/20) members were elevated to Associate or Fellow status enabling them to use the title Chartered Loss Adjuster.
AICLA in partnership with the Singapore Insurance Institute continues to run a Claims Technicians Course (CTC) in Singapore. This course has to date attracted over 400 enrolments and is now being delivered in a number of Asian countries. The International Development Director, Jaye Kumar, is finalising a fully online CTC, which will be launched during 2021. Several successful webinars were held by the International Division, some in conjunction with local insurance bodies. One webinar on the topic of using technology to undertake remote site assessments attracted some 500 registrations.
Divisions continue to innovate and play an important and active role in the provision of networking and educational activities for members. Board and Division meetings and seminars during the year were conducted as a combination of electronic and face-to-face events.
Continuing Professional Development is also very important as it represents a recognition of the need for all members to participate in ongoing training to stay abreast of regulatory and general industry changes. With the wide geographic spread of membership and Covid-19 restrictions, AICLA is well placed with online CPD training for members. Members have access to 145 tutorials of online learning material. The content continues to be updated and expanded, and we express our thanks to Alan Ford for his long-term commitment in this area, and for his work in developing the members’ guide for the ICA Code of Practice. On average one new paper is added each month.
AICLA members in Australia were required to comply with changes to the General Insurance Code of Practice effective from 1 July 2021. AICLA developed a guide outlining responsibilities for members under the COP when dealing with vulnerable claimants and those facing hardship.
CONVENTIONS
This area of activity was severely disrupted by Covid-19. The two major conventions, one in Asia and the other in Sydney, were cancelled during the year.
FINANCES
The financial performance was pleasing, particularly given the uncertain environment throughout the year, and above the budgeted projection. A surplus of AUD$15,000 was achieved by a combination of record website/ diary revenue, sponsorship for events, growth in membership, and reduced costs in a number of areas. There was significant expenditure engaging a consultant in respect of the new licensing regime in Australia, and the development by DLA Piper of guidelines for members. Sponsorship enables activities to be offered at lower costs to members than would otherwise be possible. Website/diary advertising represents a major source of revenue and assists in funding divisions’ activities.
A full set of audited financial accounts for the 2020/2021 financial year follow this report
COMMUNICATIONS/LA NEWS
Communication with members is almost exclusively via email including this Annual Report.
The electronic monthly newsletter ‘LA News’ continues to be popular and represents an effective way to communicate with members. LA News features a calendar of seminars, workshops, conventions and social activities. Statistics available show that LA News is viewed by a high percentage of members.
WEBSITE
During the year, the AICLA website www.aicla.org continued to be enhanced and can be accessed using desktop, laptop, iPad and mobile devices. It represents an important resource for members and others wanting to access information about the profession and contact members and suppliers. The site contains information on membership eligibility, qualifications for classes of membership, upcoming events, suppliers’ information, members’ details, LA News and updates on important topics. CPD online resources, COP guidelines and regulatory guidelines for loss adjusters are available in the members only area. A major feature of the website is a comprehensive events section with an online payment and registration facility. Reports reveal that the website is accessed by members and visitors on a regular basis.
Tony Libke
Chief Executive