Insurance Claims Adjusters NAICS 524291

Sep 24, 2025 - Claims Adjuster Burnout Costs Employers Money

• Burnout among insurance claims adjusters is leading to substantial financial and operational costs for insurers, according to a study from CUNY School of Public Health. The study found that employee burnout can cost employers between $4,000 and $21,000 per employee annually, translating to approximately $5 million annually for a company with 1,000 employees. In the insurance industry, adjusters face unique stressors including high caseloads, tight deadlines, and complex claims, which can all contribute to emotional exhaustion and decreased productivity. Administrative work of adjusters further exacerbates burnout. A significant portion of their time is spent on manual data entry and compliance tasks, detracting from their ability to focus on strategic aspects of claims management. Addressing the issue through training and employee benefits could offset the industry’s loss of seasoned veterans who are increasingly not being replaced by younger workers.
• Employment for insurance claims adjusters jumped 5.3% year over year in April 2005 and 1.2% since the beginning of a year with many natural disasters striking before hurricane season has begun. According to insurer Global Re’s latest quarterly report, the US had 15 billion-dollar weather disasters so far in 2025 (out of 19 worldwide). Global Re estimates about 60% of the damages from those events to be insured, translating to $81 billion in total damage. The LA wildfire in early January is the eighth most expensive natural disaster in history at $65 billion. California residents say insurance claims from the wildfires have been slow and insufficient, particularly from State Farm, which has come under criticism for its response. Additional storms including Hurricane Helene in North Carolina and deadly floods in central Texas (and any still to come) is expected to keep demand for claims adjusters high throughout 2025.

• State Farm is feeling the heat about its property insurance coverage policies in the wake of the Los Angeles wildfires of early 2025. Now that rebuilding and repairs are in full swing in LA County, State Farm policyholders are increasingly frustrated with claim denials, an inability to contact adjustors, claim delays, and insufficient payouts. Many disputes stem from claims about smoke damage in houses that survived the fires. Smoke damage is expensive to repair and clean but presents as less obvious damage to claims adjusters, a “longstanding fight” in California according to insurance policyholder advocacy group United Policyholders. There have been so many complaints that state lawmakers have asked Insurance Commissioner Ricardo Lara to investigate. The scrutiny comes as State Farm is seeking an exemption from the state to raise its rates on homeowners by 17%, which Lara conditionally approved but is now before a judge to decide.
• The Trump administration’s trade policies will see ripple effects and price increases downstream into the insurance market, according to industry experts. If lumber, steel, aluminum, and semiconductors from those three countries are subjected to double-digit tariffs, insurance underwriters will pass those costs on in the form of soaring premiums. Canada accounts for half of all US wood imports and 20% of metal imports. Added tariffs will cause home repair costs to soar given the more expensive materials needed, and insurers will raise premiums as a result. The same situation will play out in the auto industry - if the estimated cost of repairs and claims rises due to tariffs, so will customer premiums. Insurify, an insurance comparison shopping site, estimates an 8% rise in auto premiums in 2025 as a result of tariffs.