Insurance Claims Adjusters NAICS 524291

Mar 10, 2025 - Tariffs Will Raise Insurance Premiums

• The Trump administration’s threatened steep tariffs on Mexican, Canadian, and Chinese goods 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.
• Older workers are staying on the job longer, and this brings new considerations for insurance adjusters, according to Claims Journal. About 3.2% of workers were over age 65 in 2003, according to the US Bureau of Labor Statistics. That figure increased to 5.2% in 2013 and 6.7% in 2023. The BLS projects that workers over 65 will make up 8.6% of the workforce by 2033. Workers are more likely to experience multiple chronic conditions simultaneously as they age. These comorbidities can lead to increased medical needs and a higher risk of workplace injuries or illnesses, affecting their ability to perform tasks efficiently and safely. The demographic may experience elevated workers’ compensation claims, as managing these health issues can exacerbate the impact of workplace accidents or injuries.

• 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.
• 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 6.48% 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.