Challenges and Opportunities: Insights from Property Claims Industry Survey

By Aaron C. Brunko

The core purpose of the insurance industry is to come together to build resilience. A key leader in our industry has a quote in his signature that reads, “Everyone else’s worst day must be our best day.” That quote resonates with me, and it’s something I constantly communicate to our team.

That charge has never been more important than in recent years as we’ve experienced rising claim severity, including a record year in 2023 for severe convective storm activity. As the industry navigates the evolving landscape, it faces many challenges and opportunities.

We recently surveyed property claims and restoration professionals about the topics that matter most to them, and we’ve found some interesting trends.

It may come as no surprise that the labor shortage is the top challenge the industry is facing. The difficulty in finding, hiring, and retaining talent has been an ongoing issue for the industry, but it’s gotten worse in the past few years. According to The Jacobson Group, from 2009 to 2019, the turnover rate in the insurance industry was around 8-9%. Since then, it’s risen to 15%. Verisk data has found that since the pandemic, 26% of restoration estimators and 22% of carrier adjusters have changed roles, illustrating the continuing uncertainty of the labor market. Meanwhile, keeping pace with new technology was cited as the next most significant problem.

While these challenges exist, industry professionals recognize the massive opportunity in technology. More than 40% of respondents are most interested in improving their technological capabilities to enhance their claims and restoration operations. And, unsurprisingly, generative AI has piqued the interests of many in the industry, with most respondents indicating it as the technology trend they are most interested in.

At Verisk, we’re excited about how innovation and the connected ecosystem can help the industry navigate the macroeconomic challenges it’s facing and drive greater efficiencies with quality outcomes. That’s why we’re laser-focused on fostering ecosystem partnerships that better streamline processes across the industry, further simplifying complexity and delivering value to the entire claims ecosystem. By enhancing our collaborative efforts, we help optimize operations and empower adjusters and restoration contractors to be at their best when their customers need them the most.

Check out the full results and insights from the survey by downloading our report, State of the Industry: Top Challenges and Trends Facing Property Claims and Restoration Professionals.