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
                        Source: Vertical IQ and Inforum

                        Recent Developments

                        Nov 15, 2023 - Moderate Sales Growth Expected
                        • Insurance adjuster sales are forecast to increase at a 6.16% compounded annual rate from 2022 to 2027, faster than the growth of the overall economy. Industry labor costs increased during the first eight months of 2023 as employment levels increased slightly while average wages for nonsupervisory employees increased moderately.
                        • A new Florida law makes it a crime for insurers to change adjusters’ reports without detailing who made the changes and why. The Insurer Accountability Act also requires insurers to keep tabs on any edits made and preserve all versions of their reports, and insurance companies will have to tell the state how they handle claims. The law was passed after allegations were made that some insurance companies changed their own estimates in order to pay policy holders less.
                        • Hurricane Idalia became the 23rd “billion dollar” weather disaster to strike the US this year, eclipsing by September the previous annual record of 22 set in 2020, according to the National Oceanic and Atmospheric Administration. The list also includes atmospheric rivers that dumped enormous amounts of rain on California, severe flooding in Vermont, and wildfires that decimated Lahaina on the Hawaiian island of Maui. The events so far this year have caused 253 direct and indirect fatalities and produced more than $57.6 billion in damage — a figure that likely will rise as officials continue to document losses from Tropical Storm Hilary in southern California and drought that persisted across parts of the Midwest and South.
                        • The US has experienced an average of about eight billion-dollar disasters annually over the past four decades. That average has jumped to nearly 18 events annually in the past five years. Five of the past six years have seen total losses in excess of $100 billion, when adjusted for inflation.
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