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Property claims face delays as losses grow more complex, Sedgwick says

Sedgwick’s Loss Adjusting Insights points to labor shortages, equipment lead times that have more than doubled in five years, and sharply higher catastrophe-response costs, including fuel and hotels.

Reported · Written up by our desk · Property Insurance

Property insurance claims are running into longer timelines and increasingly complex losses, according to Sedgwick’s annual Loss Adjusting Insights report, even as the industry looks to artificial intelligence and other technology to improve the process.

The report cites labor shortages, delayed specialized equipment, and the growing complexity of losses as key drivers of pressure on property claim timelines, including rising costs for deploying catastrophe-response teams.

Sedgwick said the construction industry is expected to need 349,000 additional workers this year, and it reported that lead times for some specialized equipment have more than doubled over the past five years.

The report also highlighted that catastrophe-response deployment has become more expensive, with Sedgwick estimating costs have risen exponentially due to items such as fuel and hotels, as well as workforce changes as experienced claims professionals leave the industry.

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