Key Loss Adjusting Trends Shaping Property Claims in 2025

The 2025 Loss Adjusting Insights Report by Sedgwick breaks down the most pressing developments affecting commercial and residential property claims in a fast-changing landscape. This year’s edition covers nine critical trends, including labor shortages, climate change, AI adoption, rising tariffs, customer service evolution, and reform-driven litigation.

One standout theme is the disruptive impact of tariffs on construction costs. As the U.S. imposes import taxes on materials from Canada, Mexico, and China, builders face supply shortages and rising expenses—costing up to $10,000 more per new home. Meanwhile, labor shortages continue to strain resources, with over 30% of the workforce nearing retirement and too few younger workers entering the trades.

On the technology front, AI is transforming risk assessment, fraud detection, and claims processing. Adjusters are increasingly empowered by predictive analytics, remote assessment tools, and agentic AI to streamline operations. Simultaneously, climate-driven catastrophes are growing in frequency and cost, pushing insurers to rethink coverage models and invest in high-tech tools like GIS and drones to improve disaster response.

The report also highlights sweeping legislative changes in Florida and Texas. Both states are recalibrating liability laws and litigation processes to reduce excessive lawsuits and stabilize markets. These reforms—and the broader regulatory momentum nationwide—are reshaping how insurers and adjusters navigate claims resolution.