Insurance industry faces property claim delays and labor shortages

The insurance and construction sectors are facing significant operational challenges despite the integration of new technologies. A report from Sedgwick indicates that property claims are experiencing increased delays and complexity due to labor shortages, equipment lead times, and rising costs for catastrophe-response teams.

A major concern is the ‘silver tsunami,’ a wave of retirements among experienced claims professionals. With a quarter of adjusters expected to retire by the end of 2027, the industry faces a potential loss of critical knowledge and difficulties in recruiting and upskilling new talent.

In response to these risks, companies like Liberty Mutual are utilizing artificial intelligence, drones, and data analytics to shift from reactive to proactive risk management. In construction, AI-enabled computer vision and real-time monitoring are being used to identify safety hazards, such as fall exposures or missing personal protective equipment, and to improve quality control through digital twins and automated inspections.