Navigating Challenges and Opportunities in Property Claims

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 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.

At Elevate, we surveyed property claims and restoration professionals about the topics that matter most to them, and we've found some interesting trends.

Few may be surprised to learn that respondents listed the industry's top challenge as the labor shortage and skill gaps for employees new in their roles. The difficulty of finding, hiring, training, and retaining talent has been ongoing, but it's gotten worse in recent 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 indicates that since the pandemic, 26% of restoration estimators and 22% of carrier adjusters have changed roles, further illustrating labor challenge.

The survey also revealed that adapting to new technology is the second most significant challenge in the industry. Despite the increasing availability of digital tools designed to streamline workflows, many of these solutions lack effective integration and compatibility with one another. This disconnect highlights the need for a connected ecosystem to fully realize their potential and improve operational efficiency.

Along with these challenges, industry professionals recognize massive opportunities via new technology. More than 40% of respondents are most interested in improving their technological capabilities to enhance their claims and restoration operations. A majority of respondents also indicated that generative AI is the technology trend they are most interested in, as industries of all types explore its potential use cases.

At Verisk, we're excited about how innovation and a 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 invested in fostering ecosystem partnerships that streamline processes across the industry, 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 are experiencing the worst.

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