Predict and Prevent Strategy Gains Ground as Claims Costs Soar

Nationwide’s white paper makes a clear case: the current "repair-and-replace" model in personal lines insurance is no longer sustainable. Claims adjusters, already at the frontline of rising claim severity and frequency, will recognize many of the pain points cited—volatile weather, rising repair costs, and policyholder confusion over what insurance actually covers. These stressors have contributed to a broken trust cycle in the industry.

For adjusters, the shift to a "predict-and-prevent" mindset signals a pivot in how value is defined and delivered. The white paper argues for redefining the insurance relationship from reactive claims payout to proactive risk mitigation. Claims professionals will be expected to work alongside agents, carriers, and tech providers to support prevention tools like smart home sensors, usage-based driving programs, and stronger building codes.

The document highlights real-world data: homeowners delaying maintenance, rising auto premiums driven by distracted driving, and insurance retreating from disaster-prone markets. Adjusters operating in high-risk regions such as Texas, Virginia, North Carolina, and Tennessee are already experiencing these challenges firsthand. By shifting to prevention-focused models, claims teams can reduce frequency, severity, and improve long-term sustainability for both carriers and policyholders.

For the claims community, this paper is a call to rethink operational roles—not just as adjudicators of loss, but as active participants in a safer, smarter, and more resilient insurance ecosystem.