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

                        Mar 20, 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.
                        • 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.
                        • 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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