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 3,600 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 16 workers, and generates about $2-3 million annually.
- The insurance claims adjuster industry consists of about 3,600 firms that employ 58,600 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
May 8, 2023 - New Florida Bill Targets Insurance Fraud
- Legislation was introduced in Florida that would impose major penalties on insurance companies for hurricane-related insurance fraud. The legislation was submitted after complaints to the state that insurance companies, their claims adjusters, or both have fraudulently altered claims to reduced payments. The proposal would increase maximum fines for violations by 250% generally and 500% for violations during state emergencies. Insurance and adjuster licenses can also be suspended or revoked. Companies also have to respond to damage claims within seven days, pay undisputed claims within 60 days, and respond to complaints within 14 days.
- Some insurance carriers have allegedly been seeking to limit payouts to policyholders by altering the work of licensed adjusters, according to a Washington Post (WP) investigation. More frequent and intense storms in Florida and neighboring states prompted national carriers to withdraw from the market and smaller, regional carriers with fewer financial reserves moved in. Adjusters contracted by regional insurance carriers after Hurricane Ian hit in 2022 told the WP that managers have been changing their work by lowering totals, rewriting descriptions of damage, and deleting accompanying photos without their approval. Documents reviewed by the newspaper show that a dozen policyholders and their families had their Hurricane Ian claims reduced by 45% to 97%. Florida data showed that about 34% of Hurricane Ian claims were rejected or are still unpaid by early March. The 90-day period that insurance companies have to pay or deny a claim ended in late December.
- A public adjuster cannot act as an appraiser for a homeowner they represent when the insurance policy specifies that the appraiser must be “disinterested,” the Florida Supreme Court ruled in February. The court affirmed an appeals court decision in a lawsuit filed by Jon Douglas Parrish against State Farm Insurance over damages suffered during Hurricane Irma. Parrish wanted to use the chief executive officer of the public adjusting company he hired for his insurance claim to act as an appraiser to resolve a dispute with State Farm Florida Insurance Company. “Finding no way around the plain meaning of the word ‘disinterested,’ we approve the 2nd District’s decision below and hold that an appraiser cannot be ‘disinterested’ if he or she, or a firm in which he or she has an interest, is to be compensated for services as a public adjuster with a contingency fee,” the opinion says.
- Claims adjusters may struggle to provide fair and accurate appraisals due to high inflation. Reinsurance firm Swiss Reinsurance noted in a recent report that auto and property insurance claims are likely to be most affected in the short run due to “particularly high construction and car part costs.” Rising labor costs add further to the claims inflation, which is not expected to abate substantially soon due to further automotive industry supply chain issues.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.