Sedgwick Report Details Rising Costs and Labor Shortages in Property Claims

Sedgwick’s annual Loss Adjusting Insights report examined eight trends shaping commercial and residential property claims in 2026. The report noted that claims costs are under pressure due to labor shortages, equipment delays, and increasingly complex losses. Andrew McCallum, vice president of specialty operations at Sedgwick, stated that the cost of deploying catastrophe-response teams has risen exponentially due to factors like fuel and hotel costs.

The industry faces significant talent challenges, with a quarter of claim adjusters expected to retire by the end of 2027. The report also projects that the construction industry will require 349,000 additional workers this year, indicating structural strain on the labor market.