The Pacific Research Institute in February 2018 released a study, Breaking Down Barriers, that examines the economic impact of duplicative licensing regulations for independent claims adjusters and underscores the need for increased licensing reciprocity among U.S. states.

According to the study, the average claims adjuster holds between ten and twelve different state licenses, which can cost as much as $1,000 each. These burdensome requirements make it more difficult for adjusters to operate across state lines. This drives up consumer prices and limits opportunities for new adjusters to enter the market.

Currently, 34 states require independent adjusters to hold a license, and inconsistencies within state requirements cause nearly all adjusters to face licensing and regulatory barriers when working across state lines.

According to a recent survey by the Association of Claims Professionals, there are more than 125,000 independent claims adjusters working in the United States and the average adjuster must hold between ten and twelve different state licenses in order to operate effectively. These barriers make it difficult for adjusters to respond quickly to events like natural disasters, where timely processing of claims is needed in order to ensure recovery efforts respond as smoothly as possible.

“Consumers’ ability to receive quick and effective claims adjusting services shouldn’t be dictated by state borders,” said Danielle Lisenbey, Chief Executive Officer of Broadspire. “We must empower states to adopt uniform and reciprocal licensing laws so adjusters can timely and efficiently process claims.”

The full study is available on the Pacific Research Institute’s website, here.