Property insurance adjusters—both company-employed and independent—serve as the backbone of the claims process, ensuring that policyholders receive the full benefits of their coverage as swiftly and fairly as possible. Their expertise in evaluating damages, interpreting policy language, and facilitating settlements is essential in restoring financial stability to individuals and businesses affected by unexpected losses. However, despite their vital role, many adjusters are experiencing frustration and disillusionment, which could have long-term consequences for the industry.
Insights from the Insurance Appraisal and Umpire Association Presentation
At yesterday’s Insurance Appraisal and Umpire Association (IAUA) event, I spoke alongside insurance industry attorney Steven Badger on cutting-edge issues in appraisal. Later in the afternoon, I delivered my presentation, “Mastering the Art of an Appraiser and Umpire.” I had the opportunity to interact with many experienced professionals in the industry. Out of the 132 registered attendees, 110 were independent adjusters. Many told me that they are considering transitioning out of their current roles as adjusters and becoming full-time appraisers or umpires.
During discussions at breaks and the fantastic networking reception, a recurring theme emerged—many independent adjusters no longer find satisfaction in their work. The reasons align with those I highlighted in a previous blog post, Are Catastrophe Claims Adjusters Being Overworked, Provided Too Many Losses to Properly Handle, Provided Wrong Directions to Adjust Losses, or Simply Being Asked to Adjust Claims In a Manner Not Reflecting Good Faith Claims Handling.
The underlying issues include diminished authority, increased micromanagement by desk adjusters with less experience, excessive workloads, declining compensation structures, and not being satisfied with what the property claims industry has become.
The Fading “Why” Behind the Adjuster’s Role
Traditionally, adjusters have been motivated by the idea that they play a direct role in helping policyholders recover after losses. In the words of modern-day management guru Simon Sinek, the job is not answering the human need for “why” their work provides purpose. Over time, claims management practices have eroded this sense of purpose. Many adjusters feel like mere processors rather than decision-makers advocating for and making fair settlements. This lack of autonomy and recognition is leading to burnout and attrition as veteran property adjusters seek roles where their skills and experience are more valued—such as being an appraiser or umpire.
One comment from my previous post reflected what many similarly stated:
Being a catastrophe adjuster was one of the greatest experiences of my life. I loved it. I did so many catastrophes I often forget some of them. But I always remember file examiners that would order me to remove legitimate items from estimates. On Hurricane Sandy I had a flooded hotel property and one room had half masonry on the two outside corner walls and half wood framing on the interior partition walls. So following guidelines, my estimate included pressure washing half the walls and wood stud cleaning for the other half. My file examiner couldn’t understand why I had two different cleaning operations in one room. She fervently accused me of “double dipping” to make my estimate larger than it should be, and generate a higher fee bill for myself. I patiently explained to her that half the walls were masonry and half the walls were wood framed but she wasn’t grasping the concept. I explained it four times until she finally got it. Then she told me to take it out of my estimate anyway. I asked her why and she said that although she now understood it her superiors would not. She was one of the nicer file examiners I had. But every catastrophe adjuster has stories like this.
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Many insurance companies today seem to want brand new field adjusters with no experience and they just want to get some kind of payment to the insured, close the file and move on. They might pay additional money by remote adjusting months later. And many carriers will turn away experienced adjusters who know how to write a full estimate and close files quickly. I know of field adjusters nowadays who are hired to adjust total loss homes and the adjusters have absolutely zero experience.…
Not all property insurance adjusters feel this way. I know many who are in great companies who are compensating, training, promoting and motivating adjusters through a career path that is personally, professionally and financially rewarding. However, I have noted that one major insurance industry consulting firm has advised that companies find greater profit in moving the claims function to outside vendors in The Big Insurance Claims Trend—Moving From In-House Adjuster Excellence to Surrogate Unlicensed Claims Professionals.
Industry Consequences and the Need for Reform
If insurers fail to address these issues, the industry will face more severe shortages of experienced and competent field adjusters. The solution is not complicated—insurers must invest in training, compensate adjusters fairly, and empower them to make decisions that reflect their expertise. Otherwise, the downward trend will persist, leaving policyholders to suffer delays and inadequate claim resolutions due to an insufficient number of skilled adjusters in the field.
The insurance industry must recognize that adjusters are not just cogs in a bureaucratic machine; they are the frontline professionals ensuring that insurance functions as intended. The old adage that claims is the one area of the insurance company where insurance companies lose money should be a myth and not a cultural reality of the insurance operation. If claims management fails to answer the essential “why” behind the adjuster’s role, more will walk away, and the consequences will be felt by insurers, policyholders, and the entire property insurance community.
Thought For The Day
“Working hard for something we don’t care about is called stress. Working hard for something we love is called passion.”
—Simon Sinek