Monday, October 5th, 2026 — Sedgwick’s 2026 Loss Adjusting Insights Report identifies eight pressures shaping property claims, from a shrinking pool of experienced adjusters to more complex losses involving data centers, energy infrastructure and large construction projects.

1. Talent Shortages

Nearly 25% of claims adjusters are expected to retire by the end of 2027, according to data cited by Sedgwick. Those retirements threaten more than staffing levels. Experienced adjusters take policy knowledge, technical judgment and years of lessons from difficult claims with them when they leave.

Seventy-three percent of insurance professionals surveyed said the loss of industry knowledge would be the greatest effect of the retirement wave. Another 62% expect a shortage of mentorship opportunities as experienced professionals leave the workforce.

Sedgwick recommends structured training, mentorship and tandem-team approaches that pair experienced adjusters with less experienced staff. The goal is to transfer judgment and technical knowledge before those skills leave the organization.

2. AI and Technology

Sedgwick cites projections that AI could create more than $100 billion in value for insurers, but widespread use has not translated into widespread scale.

Up to 82% of carriers use AI tools somewhere in their operations, while only 7% have achieved scalable success. Sedgwick points to disconnected systems, inconsistent data and governance requirements as major obstacles. Isolated tools may improve individual tasks while still forcing adjusters to move between multiple systems.

The report sees AI primarily as a way to support adjusters. Document review, estimating support, routing and other administrative functions can be accelerated, leaving adjusters more time for investigations, coverage analysis, exceptions and policyholder communication.

Regulatory expectations are also increasing. Sedgwick cites Texas TDI Bulletin B-0003-26, which clarified that insurance activities involving AI remain subject to existing insurance laws and requirements for validation, documentation, accountability and audit readiness.

3. Data Centers

Data centers represent an estimated global insurable asset base of more than $2 trillion. Their interconnected systems can turn relatively small incidents into expensive losses.

A water leak, smoke event or copper-wire theft can affect servers, cooling systems and other equipment well beyond the original point of damage. Sedgwick says 57% of significant data center outages cost more than $100,000, while 20% cost more than $1 million.

Business interruption and extra expense can exceed the cost of the physical damage when critical systems remain offline. That puts more weight on repair-versus-replace decisions and on an adjuster’s understanding of how individual systems affect the rest of the facility.

Sedgwick also notes that 56% of planned U.S. data center projects are in areas with high exposure to hurricanes, severe storms, earthquakes or winter weather.

4. Power, Utilities and Renewables

Global electricity demand is expected to double by 2050, driving continued investment in renewable generation, battery storage and transmission infrastructure.

More than 3,000 utility-scale solar and wind facilities are insured in the United States, according to data cited by Sedgwick. Each technology brings different equipment, operating requirements and loss scenarios.

Battery energy storage systems are one example. Severe weather damage can lead to thermal runaway, fire or explosions, requiring specialists who understand the equipment, safety requirements and operational effects of the loss.

Those systems are also becoming more interconnected. Damage to generation, storage or transmission equipment can affect other parts of the network, extending downtime and complicating restoration.

5. Builder’s Risk

Large commercial construction projects can carry total insurable values ranging from $10 billion to $30 billion, according to Sedgwick. When losses occur, the cost of damaged property may be only one part of the claim.

Construction delays can trigger debt service, interest expense, taxes, management costs, professional fees and delay-in-startup exposure. Skilled labor shortages can also make it harder to secure the specialists needed to repair complex projects.

Supply chain problems add another constraint. Lead times for specialized equipment have more than doubled during the past five years. Electrical switchgear, generators, transformers and custom HVAC systems can take long enough to replace that a single damaged component can stall an entire project.

Sedgwick says carriers and adjusters need to identify those bottlenecks early and account for their effect on the construction schedule, financing and recovery plan.

6. Climate Volatility

The United States experienced 23 weather disasters that each caused more than $1 billion in damage in 2025. Severe convective storms generated more than $50 billion in insured losses for the third consecutive year.

Sedgwick says carriers can no longer build catastrophe plans around hurricanes or a traditional peak season alone. Severe storms, floods, wildfires and other events are producing significant losses in more locations and at different times of year.

The average time between billion-dollar U.S. disasters fell to 10 days in 2025. That gives claims organizations less time to reset staffing, redeploy adjusters and prepare for the next event.

Technology is giving carriers more information before adjusters can enter a damaged area. Sedgwick points to GIS mapping, satellite imagery and drones as tools for estimating damage and directing resources. During the 2025 California wildfires, Sedgwick says its adjusters used GIS data to compare structures before and after the fires while some neighborhoods remained inaccessible.

7. Early Intervention

Sedgwick places particular emphasis on the first 48 hours after a property loss. Decisions about mitigation, temporary housing, contractors and repair timelines can affect both claim severity and the policyholder’s experience.

Labor shortages and supply chain delays make recovery timelines harder to predict. Sedgwick says carriers are increasingly engaging contractors early and estimating the broader recovery timeline before the full scope has been completed.

The financial stakes are rising. Overall claim severity reached its highest recorded level in 2025, up 26% year over year, according to data cited in the report. Extended hotel stays, prolonged mitigation and delayed repairs can compound those costs.

Sedgwick also cites research showing that claims reported after 90 days are 10 times more likely to result in litigation than claims reported within the first 90 days.

8. Appraisals Under Policy

Disagreements over repair scope and pricing are sending more property claims into appraisal. Labor shortages, higher material prices and competing estimates can widen the gap between carrier estimates and policyholder expectations.

In Texas, appraisal use in residential property claims nearly doubled during the three years leading up to 2023. Sedgwick also cites a recent Iowa hail claim in which the appraisal award was more than $80,000 above the policyholder’s original proof of loss.

When appraisers cannot agree, a neutral umpire can help resolve the dispute without moving directly into litigation. Sedgwick says more than 3,500 homeowners’ policy disputes were brought before federal courts in 2025, the highest number since 2009.

The report’s appraisal section focuses on resolving valuation disputes before they harden into litigation, adding legal expense and extending the life of the claim.