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Catastrophe claims could face a 40% deployable capacity gap by 2027
Sedgwick warned that about 40% of catastrophe claims resources available in 2024 may be unable to deploy by 2027, as the US claims workforce shrinks faster than other insurance segments.
Catastrophe claims could see a major capacity shortfall by 2027, with a senior claims executive at Sedgwick warning that up to 40% of deployable resources available in 2024 may no longer be able to deploy on catastrophe losses by 2027. Insurance Business reports that Andrew McCallum, Sedgwick Vice President for Specialty Operations, said the reduction would also erode the underlying catastrophe knowledge base.
McCallum linked the risk to a contraction in the US catastrophe claims workforce at the same time insurers are spreading claims resources across more perils and locations. He cited labor data showing claims employment declining more sharply than other insurance segments, including a 20.9% year over year drop in claims employment in July, based on Jacobson Group Labor Market PULSE data that draws on Bureau of Labor Statistics figures.
Insurance Business added that property and casualty employment fell 1.7% year over year over the same period, while Bureau of Labor Statistics occupational projections point to a smaller claims workforce over the longer term. The story also notes there were about 376,100 claims adjusters, examiners and investigators, though the excerpt ends mid sentence.