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Sedgwick's 2025 Loss Adjusting Insights Report

In a groundbreaking announcement, Sedgwick—recognized globally as a leader in risk and claims administration—has published its first-ever Loss Adjusting Insights Report. This pivotal document aims to provide industry stakeholders with a detailed analysis of the critical trends that are currently influencing property claims in both commercial and residential sectors for 2025.

Understanding the Trends Affecting Property Claims

The report offers a comprehensive look into various factors affecting the property claims landscape, such as:

• - Global Trade Policies: Examining how international trade laws impact material availability and costs.
• - Climate-Driven Disasters: Analyzing how increasing extreme weather events are transforming risk and liability calculations.
• - Technological Advancements: The role of AI in claim processing and evaluating risk.
• - Tariffs and Labor Shortages: The impact of new tariffs on construction costs and the ongoing struggle for skilled labor.
• - Evolving Customer Expectations: Understanding shifting client needs amidst this changing landscape.

Scott Richardson, President of Property in the Americas at Sedgwick, emphasized the complexity of the current claims environment by stating, "The pace of change will only accelerate, and our goal is to provide industry leaders with the insights needed to navigate this dynamic environment with confidence."

Key Findings from the 2025 Report

The Loss Adjusting Insights Report uncovers several significant findings that stakeholders must consider:

1. Climate Change Catastrophes: In 2024 alone, weather-related disasters accounted for a staggering $368 billion in damages globally. This ongoing trend is contributing to rising insurance premiums and creating 'insurance deserts' in particularly high-risk areas.

2. Impact of Tariffs: Newly applied tariffs on goods from Canada and Mexico are potentially increasing construction material costs in the United States by over $3 billion. Consequently, building a single-family home could see price increases ranging from $7,500 to $10,000.

3. Transformation via Technology: The AI insurance claims processing sector was valued at $514 million in 2024 and is anticipating growth to $2.7 billion by 2034. This points to a revolutionary shift in how risk is assessed and claims are managed.

Strategies for Succession

The report doesn't just identify challenges but also outlines actionable strategies for a range of professionals including carriers, contractors, brokers, and claims managers. Here are some highlighted strategies:

• - Adapt to Climate Risks: Businesses must adopt new methodologies to calculate risks accurately in the wake of climate change-related disasters.
• - Embrace AI Technologies: Utilizing advanced technology tools will facilitate not just claims processing but will also enhance customer experience and accuracy in risk assessments.
• - Communicate Effectively with Clients: Given shifting expectations, clear communication about claims processes and timelines will be crucial.

Conclusion

Sedgwick's Loss Adjusting Insights Report serves as an essential tool for anyone involved in property claims, providing real-world data, expert analysis, and innovative strategies. As the claims landscape continues to evolve rapidly, professionals equipped with this knowledge will be better positioned to face upcoming challenges and seize new opportunities.

As this report is slated to be published annually, it stands as a reliable resource for property claims experts to understand transformations, anticipate potential barriers, and enhance methods of delivering service to clients and communities alike. To access the full report, visit Sedgwick's official site.

For more information on how Sedgwick assists its clients in navigating the complex landscape of risk and claims, check out their services and innovative applications that leverage cutting-edge technology to meet emerging demands.