Part 1: How technology is transforming loss adjusting today
AI and cutting-edge digital tools have ushered in a new era in loss adjusting. These technologies are changing how losses are investigated, processed and resolved — enabling policyholders to document minor damages themselves and empowering adjusters to work smarter and faster. These unprecedented advancements not only benefit policyholders and adjusters, but they’re also driving significant cost savings for insurers.
The evolution of adjusting property claims
For decades, adjusting a property claim traditionally involved sending a qualified adjuster on-site for a thorough and hands-on evaluation of the loss. Adjusters would inspect the property, document the extent of the damage and interact directly with the property owner to discuss the claims process.
While this method ensures accuracy, it comes with higher operational costs, the need for significant travel time and delays due to weather or other challenges.
We first started seeing the industry embrace remote loss adjusting with personal line motor claims. When there’s an motor loss, it’s now standard practice for policyholders to be asked to gather information and take photos of the damage themselves, using self-service tools. Estimates are automatically generated from photos, or appraisers write estimates remotely, without scheduling a physical appointment to review the damage.
Personal line property claims are following that same trend. For minor losses amounting to a few thousand dollars or less – such as a pipe or ceiling leak – desk adjusters can write the estimate and advance the claim using details submitted by the policyholder.
Not only is this process more seamless for the policyholder, but it also reduces operational expenses for insurers since they avoid an on-site inspection.
The technology powering remote assessments and better experiences
AI-enabled self-service tools are making it possible for policyholders to submit their own loss information.
Policyholders submit details and photos of the damage following step-by-step instructions on an app or web browser. AI-enabled systems analyze the data submitted and create a 3D model with measurements. For some low-complexity losses, draft estimates are created just from the photos. For other losses, a desk adjuster can use those 3D measurements and photos to write the estimate, without ever stepping foot at the loss site.
This approach to property claims is more convenient for the policyholder and gives them the ability to self-serve. There’s no need for them to schedule time for an adjuster to come out to the property. In many cases, they don’t even need to interact with the adjuster at all. They can report damage and send over what’s needed for the estimate immediately, which speeds up the claim resolution time, and ultimately, the payment.
Limitations of remote adjusting
There are limits to what can be adjusted remotely using information gathered from the policyholder.
Claims that are complex or severe still require traditional loss adjusting methods of sending an adjuster on-site to assess the damage. Remote assessments are usually only recommended for non-complex, low-severity residential claims, but they’ve been used for some commercial claims, too. For example, they were used for the George Floyd protests in 2020 when rioters damaged storefronts in Minneapolis. The resulting commercial claims reported similar damage, including shattered windows.
One remote tool that created a lot of buzz in the industry a decade ago was the use of drones. They’re still used today on a limited basis, but they haven’t been the game changer many thought they would be. They’re expensive and typically need to be complemented by another on-site component.
Drones still require an operator to fly them, and in many cases, the footage captured is similar to what’s already available through satellite images. We also find with our carrier partners that if they’re going to send someone on-site, they would rather have an adjuster who can do more than look at the damage from a distance. They want someone who can examine it closely or even feel it to understand the full severity, like with hail damage.
In scenarios where an adjuster can’t go near the loss – such as a collapsed building or flooded area – drones might be the only realistic option, and that’s where they find their place in remote loss adjusting.
Broader uses of AI and technology in loss adjusting
In addition to powering remote loss adjusting, AI and other technologies are being used to help make adjusters more efficient for both their work at the desk and in the field. At Sedgwick, we use AI-enabled tools like Sidekick, an industry-first platform that uses generative AI, to help adjusters summarize large quantities of information and data so it’s easier to interpret.
As one example, AI can comb through stacks of repair invoices and organize and synthesize the content, saving adjusters hours of doing that manually. That’s hours of time adjusters can now spend on tasks that move a claim forward.
The next evolution of AI in loss adjusting is the use of agentic AI to help adjusters make decisions. That’s something we’re starting to do at Sedgwick with our Sidekick Agent tool. By automatically setting up claims, assigning adjusters and providing recommendations on how to handle a claim, AI enhances adjusters’ productivity and efficiency while still keeping them in loop at key decision points.
As we continue to explore the possibilities of new technologies, agentic AI in particular, the future of loss adjusting promises even greater innovation and unparalleled convenience and efficiency.
