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

                        May 9, 2024 - 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, according to Inforum and the Interindustry Economic Research Fund, Inc. Industry labor costs increased during 2023 as employment increased slightly while average wages for nonsupervisory employees increased moderately, according to the US Bureau of Labor Statistics.
                        • The National Association of Insurance Commissioners made AI one of its strategic priorities for 2024 as more insurers turn to artificial intelligence to crunch data, process claims, and determine whom to cover, according to Insurance Business Magazine. State regulators are pushing the insurance industry to avoid harming customers. Regulators are concerned about the accuracy of the results produced by AI systems and predictive analytics, and whether they introduce unfair discrimination. “We as an industry need clear expectations for regulatory compliance, so everyone will follow the same standard, and, hopefully, it’s a high standard,” said Emma Ye, vice president of risk at At Bay, a cyber insurance specialist. “We understand the critical importance of ensuring that AI-driven decisions are transparent, accurate and fair from discriminatory practices.”
                        • 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.
                        • About 88% of homeowners surveyed in 2023 by the Insurance Information Institute report that they have purchased homeowners’ insurance. About 32% report that they have been impacted by weather events in the last five years. Some 47% of homeowners report having a home inventory and 50% have made improvements to make their homes more resilient during weather events.
                        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.

                        Request A Demo