Insurance Claims Adjusters
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,800 insurance claims adjusters in the US investigate, appraise and settle insurance claims. Public adjusters negotiate settlements with an insurance company on behalf of a policyholder. Company staff or independent adjusters represent the interests of the insurance company. Firms may specialize or offer services across a broad range of fields.
Payments Based On Contingency
Many claims adjusters primarily work on contingency and only receive payment when a claim is settled.
Integrated Process And Technology
Advances in technology in the insurance business have increasingly moved parts of the claims management process from the field back into the carrier’s office, reducing dependence on third-party claims adjusters.
Industry size & Structure
The average insurance claims adjuster operates out of a single location, employs 17 workers, and generates about $2-3 million annually.
- The insurance claims adjuster industry consists of about 3,800 firms that employ 66,000 workers and generate over $8 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 61% of industry revenue. The top four companies account for 25% of industry revenue.
- Large companies include Crawford & Company, Sedgwick, and IAS Claim Services. The largest firms may have hundreds of offices throughout the world.
Industry Forecast
Insurance Claims Adjusters Industry Growth
Recent Developments
Nov 14, 2024 - AI may Boost Industry Efficiency
- Generative AI technology could reduce loss-adjusting expenses by 20% to 25% and leakage by 30% to 50%, creating more than $100 billion in benefits for insurers and customers, according to management consulting firm Bain and Company. Payouts can become more accurate through easier coverage verification, more efficient investigations, and better negotiations based on past case analysis. AI can also reduce the time employees spend on administrative tasks and basic handling, freeing them up for more valuable work such as supporting customers and processing complex claims.
- The Supreme Court of Texas upheld a law that requires someone be licensed before they are employed or seeking employment as a public insurance adjuster. The law also exempts anyone to work as a public insurance adjuster or advertise public adjuster services if they work as a contractor or may work as a contractor for any property the services involve. Restrictions on being a contractor of a property while also handling an insurance claim also do not conflict with constitutional rights, the court ruled. The decision may affect the outcomes of similar cases in other states if it is used as a precedent.
- Current top sources for cost reduction in the insurance industry involve digital transformation, technology modernization, and data and analytics, according to a recent Accenture survey. There are several key areas where a digital assistant can improve a claims adjuster's efficiency, including performance support, claims processing, regulatory compliance and claims leakage according to Accenture. A digital assistant could help navigate the many intricacies and distinctions of each state's unique workers compensation insurance regulations, for example. It could also make sure that claims adjusters are aware of periodic changes or updates to state laws during the claims settlement process.
- Insurance claims adjustment industry employment and average wages for nonsupervisory employees increased slightly during the first nine months of 2024, according to the US Bureau of Labor Statistics. Insurance adjuster sales are forecast to increase at a 5.7% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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