Sabrina Gordon, Business Reporter

The Financial Services Commission, New Kingston. - File

The Financial Services Commission, the regulatory authority for the insurance industry, is on a drive to bring all players in the sector, including loss adjusters and insurance consultants, under its formal jurisdiction.

Until now, the FSC, has primarily focused on policing the firms that actually offer insurance coverage and other front-line operators, such as brokers and agents. The Insurance Act of 2001 requires the registration of adjusters and consultants.

"The registration of adjusters and insurance consultants was deferred until the registration of sale representatives, brokers and agents was completed and resources could be deployed to do the research and consultations required," said Nadene Newsome, the FSC's communications manager.

People have until the end of August to apply for registration.

The Loss Adjusters' Association of Jamaica (LAAJ), estimates that about 200 persons carry on business here as adjusters. A handful of them were registered when the process first started in 2004, but the project was suspended due to the discrepancies in standards and disagreements over acceptable certification.

"A few persons were registered but the process was discontinued because the FSC and the LAAJ realised that there needed to be agreement on the standards of professional competence and acceptability of professional certification," Newsome explained.

"The adjusters were allowed to continue in business until the commission and the Loss Adjusters' Association agreed on the registration requirements."

That process has been completed.

Registration for adjusters

The persons who now have to be licensed includes loss adjusters operating as individuals, in partnerships or as companies.

Adjusters employed to firms will be required to register with the FSC.

Similarly, claims negotiators, insurance consultants and insurance investigators, whether operating as individuals, in partnerships, or as companies will have to be licensed.

The educational qualifications vary slightly, whether registration is as loss adjuster, claims negotiator, insurance investigator or consultant, but principals require at least 10 years' experience and certification in the particular field from an approved institution. Licensees will also have to meet a "fit and proper" criterion.

Additionally, coverage of $500,000 is required for individuals and $1 million for companies. In the case of insurance consultants, however, the registration bond is $1 million, whether operating as an individual or company.