Introduction
Deft’s formation nearly a decade ago was predicated on the hypothesis that independent claims adjusting in the property and casualty middle markets was facing significant headwinds. These challenges stemmed from advancements in data collection and aggregation, coupled with a growing need for greater specialization to deliver the accurate and timely outcomes demanded by clients and policyholders alike. With this foresight, we assembled a small team of exceptional adjusting talent and carved out a niche in the large commercial and high-net-worth segments of the industry. Now, eight short years later, it is evident that further consolidation is inevitable. Macro conditions, such as a favorable M&A environment, shrinkflation, tort reform, and increasingly reliable agentic solutions replacing routine human workflows, have prompted us to strategically pivot toward the solutions our clients and consumers demand to maintain viability. This pivot will mean different things to various segments of our network, which I will elaborate on in the paragraphs to follow.
Independent Adjusters
For context, I am you. As a frontline independent field adjuster for nearly 20 years, I very clearly see our industry through your lenses. While I believe that the low barrier for entry into our profession led to overcompensation for mediocrity as the norm instead of the exception, I also appreciate the intangibles and unique skillset required for longevity and success in what we do. Viability as an IA will demand more moving forward though. With near certain continued market consolidation will come a thinning of the herd where only the best of the best remains standing. I challenge my team, and our cohorts at large, to head this warning and take it to heart. As an independent contractor, it is solely on you to apply the necessary dedication to improving yourself day after day. Constant betterment in the form of education, technology adoption, compliance, quality and pride in product, and of course networking are vital to your survival. While it is my burden, and the burden of Deft’s leaderships, to ensure that opportunities remain, it is your challenge to ensure that your name is called while those who are less dedicated to their craft fall to the wayside.
Carriers & TPAs
I urge you not to lose sight of how unpredictable the human element is and will continue to be. While I fully support streamlining processes to achieve more efficient and accurate outcomes, it is crucial not to alienate the consumer while doing so. As we are witnessing in catastrophe-prone states, skyrocketing premiums, higher deductibles, more limited coverage, and the impacts of tort reform are leading to low or no claims payouts, even as efforts persist in reducing loss adjustment expenses. I challenge you to retool the exceptional segment of the independent adjuster workforce to support a more holistic type of coverage offering. Deft has demonstrated that a year-round focus on property-level resilience, through involvement from policy inception to post-loss recovery, not only results in better claims outcomes but also enhances customer satisfaction through meaningful human touchpoints. Consider reallocating a fraction of those loss adjustment expense savings toward pre-loss diligence, and I guarantee you a favorable and sustainable outcome.
Insurance Consumers
Demand more from your insurance provider while focusing on building your own resilience. I firmly believe that your premium dollars should provide greater confidence that your carrier will restore you after a loss. However, you must position yourself from a place of strength when deciding which portions of your risk to retain versus transferring to the insurance markets. Keep in mind that insurance is, in most cases, a for-profit business, and the laws of our country often require all but the ultra-wealthy to carry multiple forms of insurance coverage. The adage, “an ounce of prevention is worth a pound of cure,” resonates now more than ever. Instead of preemptively arming yourself with for-hire advocates, redirect that cost toward making your property truly more resilient. These efforts will not only reduce your premiums over time but also minimize your out-of-pocket expenses after a loss, given that the current deductible and coverage limitation framework is unlikely to change.
We must not deceive ourselves into thinking that the current property insurance environment is an exception. Despite the ongoing efforts of some truly exceptional organizations and individuals in our industry, we should anticipate exponentially greater challenges ahead. Regardless of your beliefs about climate change, AI's long-term impact on society, macroeconomics, or similar issues, adjusters, carriers, consumers, and all other stakeholders invested in the property insurance sector must look inward and commit to improvement. Only through our collective efforts can property insurance, as we know it, remain a viable risk transfer solution.