Operations Report

President's Report | Operations Report

MEMBERSHIP

During the year 41 members (18 in 2006) joined the Institute bringing the total membership to 857 (832 in 2006) (refer graph below). This increase in new members was offset by 16 retirements and members leaving the profession. This overall increase in net membership albeit small represented the first increase for a number of years. In recent years there have been dramatic changes in the insurance market with a large reduction in the number of insurers.

This trend combined with reduced insurer panel sizes and changes in claims processes has resulted in significant structural changes for loss adjusters. These changes have seen a reduction in the number of small firms and until this year an overall drop in the number of loss adjusters in the profession. The International Division established in 2003 achieved further membership growth over the past year.

Membership Numbers

The following chart provides the break–up of membership by divisions and classes of membership. Classes of membership are divided into four principal categories Fellow, Associate, Affiliate and Ordinary.

Members in the category of Affiliate have been offered transitional arrangements to allow them to upgrade their membership to Associate. During the year 26 (14 in 2006) members were elevated to Associateship (Chartered Loss Adjuster status) and 4 (5 in 2006) members to Fellowship status.

Classes of Membership

Division Membership

EDUCATION

Underpinning any profession are educational and training standards. The Institute in conjunction with ANZIIF has established the eight module Diploma of Financial Services (Loss Adjusting) which forms the basis for advancement within AICLA. The Diploma is highly regarded and continues to be reviewed and updated to ensure it remains contemporary and the leading course for those working in loss adjusting and others seeking a career in loss adjusting.

The Institute continues to promote to members the importance of achieving Chartered Loss Adjuster status. Loss Adjusting Diploma subject enrolments for 2006 were 337 compared with 281 in 2005. The number of enrolments for the first six months in 2007 is 50% higher than the same period in 2006.

During the year AICLA introduced the Certificate in Loss Adjusting Practice which comprises four modules from the Diploma of Financial Services (Loss Adjusting). AICLA believes that the Certificate in Loss Adjusting Practice should be the minimum standard for those performing loss adjusting activities.

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, industry and general business changes.

Diploma of Financial Services (Loss Adjusting)

Central to CPD activities is regular Division education meetings, Claims Convention and insurance industry seminars. The wide geographic spread of membership means that not all members can attend organised seminars and conventions.

In response to calls from members for increased training resources, the Institute in conjunction with ANZIIF has developed tailored on–line CPD training for members. Initially members have access to 10 hours of online learning material. The content will continue to be updated and expanded under our agreement with ANZIIF.

FINANCES

Careful budgeting and tight financial management was maintained during the year. It is the policy of the Board that income and expenditure be matched as close as possible and that financial reserves be maintained at current levels which have been deemed adequate. The Institute diary remains an important source of revenue and we thank diary advertisers for their continued support. Diary advertising revenue represents the most important source of income for divisions. Most divisions now employ part time paid secretaries to conduct division administrative activities. The major source of Institute revenue continues to be members’ subscriptions. Expenses include cost of development of CPD online – the electronic on–line training facility for members.

A full set of audited financial accounts for the 2006/2007 financial year follow this report.

Financial Reserves

OMMUNICATIONS/WEBSITE/LA NEWS

The preferred method of communication by members is via the internet. Email addresses for 823 members (over 95%) have been recorded. The vast majority of all communication to members is now made by email. This year for the first time 220 members nominated to receive the Annual Report electronically.

The popular electronic newsletter ‘LA News’ continues to be produced monthly and represents an effective way to communicate with members. The newsletter is well supported by contributions from Divisions.

The magazine ‘Insurance and Risk Professional’ is distributed to members and this publication is a valuable source of information for members.

The Institute website www.aicla.org continues as an important resource with information on membership eligibility, qualifications for classes of membership, division events, suppliers information, member contact details and updates on important topics. The number of site visits also continues to rise with an average of over 8,000 hits each month to the AICLA website.

MEMBERSHIP AGE PROFILE

For the first time an age profile of members was undertaken by AICLA. With the general increasing age profile within the broader insurance industry AICLA was interested in the age demographics within the loss adjusting market. The Board see the aging profile of loss adjusters as a challenge for the profession and industry.

Age Profilex