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Sedgwick's 2026 Loss Adjusting Insights Report

In an era marked by unpredictable climate patterns and technological advancements, Sedgwick has unveiled its annual Loss Adjusting Insights Report, shedding light on current trends that are significantly reshaping property claims globally. This year's report highlights eight pivotal trends that are influencing both commercial and residential property claims in 2026.

A Closer Look at the Trends

The report builds on last year's findings, emphasizing how various factors such as climate volatility, adoption of artificial intelligence, and workforce challenges are merging to complicate the property claims landscape. These changes are driving the need for insurance carriers and claims professionals to adopt new strategies to navigate the transforming environment effectively.

1. Climate Volatility and Renewable Energy Risks

The report reveals that the U.S. faced 23 weather-related disasters ranging over $1 billion in damages in 2025, illustrating the escalating severity of climate-related risks. A significant concern among 54% of renewable energy providers is weather-related damage, with new operational challenges arising from innovative technology like battery storage, which can result in critical failures.

2. Contractual Pressure and Recovery Windows

As the frequency of billion-dollar disasters shortens recovery time, insurance carriers are left scrambling to realign their operations and staff for incoming claims. With only 10 days on average between disasters in 2025, the construction industry is expected to require an additional 349,000 workers in 2026 to meet demand, thus intensifying the pressure on the workforce.

3. Rising Project Values and Increased Delays

The report also highlights that large commercial construction projects can have insurable values ranging from $10 billion to $30 billion. However, lead times for specialized equipment have doubled over the past five years, which has caused significant delays and rising costs, extending the recovery period for affected claims.

4. The Role of AI in Claims Processing

Artificial intelligence continues to play a transformative role in claims management, allowing for more efficient processing and analyzing of claims data. As technology advances, the combination of AI and specialized expertise is becoming essential for claims handlers to keep pace with evolving requirements.

5. Navigating the Expert Landscape

The report leverages insights from Sedgwick's leaders and combines industry data that collectively guide insurance professionals in understanding ongoing changes in the sector. This guidance comes in handy amidst the complexities introduced by energy and construction-related claims.

Preparing for Future Challenges

Sedgwick's extensive report is not just an analysis of current trends but a call to action for the industry. Stakeholders must enhance their preparedness, keep operational costs in check, and aim to improve the outcomes of property claims. Scott Richardson, President of Property for Americas at Sedgwick, emphasizes the need for specialized expertise to navigate the complexities associated with today's claims environment effectively.

Conclusion

As the landscape for property claims transforms, understanding these emerging trends becomes crucial for both risk leaders and claims professionals. The 2026 Loss Adjusting Insights Report serves as a vital resource for adapting strategies and optimizing operations amidst ever-changing conditions. For those interested in an in-depth analysis, the full report can be accessed here.

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