Operations Report

President's Report | Operations Report

The global financial crisis set a sombre backdrop for individuals and businesses during 2008/09. During the year AICLA initiated a Profile and Communications Campaign, promoted benefits of the revised membership structure and achieved a strong rise in the number enrolled in the Diploma of Financial Services (Loss Adjusting).

The profession has kept busy with major fire and flood events in a number of geographic jurisdictions in which members operate.

Membership

Membership remained relatively steady at 841.

Changes in the insurance market in general and loss adjusting profession continue to occur with further contraction in a number of loss adjusting firms. “A Career in Loss Adjusting” pack designed for persons entering the profession has proved to be popular. A total of 69 members joined AICLA during 2008/09.

Membership Numbers

The following chart provides 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 new membership structure requires Provisional members within three years from the date of joining to complete studies to progress to Affiliate membership. This has resulted in a strong increase in examination enrolments.

Classes of Membership

Division Membership/ Branch Membership

Membership Age Profile

With the general increasing age profile within the insurance industry, AICLA is aware of the challenge facing loss adjusting organisations to attract and retain younger employees. AICLA is endeavouring to support the efforts of employers through the new membership structure, career packs and quality training courses. Data is now being collected on the age of members and it is pleasing that there has been an increase in the number of members under 35 years and also in the number in the 36–45 years category. Members under 45 years total 35% of members.

Age Profile

Education

Underpinning any profession are educational and training standards. The Institute in conjunction with ANZIIF has in place an 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. Loss Adjusting Diploma subject enrolments for 2008 were 584 compared with 404 in 2007, an increase of 45%.

AICLA’s mid-tiered qualification, the Certificate in Loss Adjusting Practice, comprises four modules from the Diploma of Financial Services (Loss Adjusting). Completion of this certificate entitles a member to Affiliate membership. Enrolments in Certificate in Loss Adjusting modules increased in 2008 by 60%.

The Institute continues to promote to members the importance of achieving Chartered Loss Adjuster status. During the year 37 members were elevated to Associate or Fellow status enabling them to use the title Chartered Loss Adjuster.

Diploma

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. 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 this training challenge, AICLA in conjunction with ANZIIF has developed tailored on-line CPD training for members. Members have access to 25 hours of online learning material. The content continues to be updated and expanded under an agreement with ANZIIF.

Finances

Careful budgeting and tight financial management was maintained during the year with the financial outcome better than anticipated given the commitment to the Profile and Communication Campaign. 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 an 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 and increasing revenue is generated from the claims convention conducted jointly with ANZIIF.

A full set of audited financial accounts for the 2008/2009 financial year follow this report.

Financial Reserves

Communications/Website/LA News

The preferred method of communication by members is via the internet. Email addresses for over 96% members have been recorded. The vast majority of all communication to members is now made by email. Currently 405 members have nominated to receive the Annual Report electronically.

The electronic monthly newsletter “LA News” continues to be popular 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.
AICLA made a submission to ICA seeking changes to the General Insurance Code of Practice. A copy of the AICLA submission is available here.

The Institute website is 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.

Tony Libke
Administrative Officer