July 25, 2025
The insurance industry is undergoing a profound transformation, with artificial intelligence (AI), drones, 3D imaging and other digital tools reshaping the way claims are assessed and managed. These technologies are revolutionising processes that once relied heavily on manual effort and in-person assessment. Yet despite these advancements, the role of the professional loss adjuster remains essential — especially when it comes to complex, high-value or disputed claims.
The rise of automation — and its limits
AI and automation are increasingly being used to speed up the handling of smaller, more straightforward claims. Policyholders can now submit claims online, upload photos of damage and in some cases receive settlement offers without ever speaking to an adjuster. For routine claims such as minor water damage or small repairs, this automated process can deliver faster outcomes and reduce administrative costs.
However, the limits of automation quickly become apparent when claims are more complicated. Major structural damage, business interruption, code compliance issues or liability disputes often fall well outside the capacity of AI systems to resolve. These situations require human expertise, nuanced judgement and the ability to interpret complex policy wording.
Loss adjusters aren’t merely claim processors; they’re skilled professionals who assess causation, quantify losses, manage negotiations and ensure fair outcomes. They bring a deep understanding of insurance policies, construction methods, local regulations and, importantly, empathy to every case they handle. AI tools, no matter how sophisticated, cannot replicate these inherently human abilities.
How technology can help adjusters
Rather than viewing AI as a threat, adjusters and insurers are increasingly recognising it as a powerful tool that can improve the quality, accuracy and efficiency of their work. Several key technologies are already making a difference in the field:
- Drone inspections: Drones allow adjusters to safely and efficiently inspect roofs, flood-affected areas and hard-to-reach sites without the need for scaffolding or lengthy site visits. This improves safety and speeds up assessments.
- Satellite imagery and mapping platforms: Tools such as Nearmap provide high-resolution aerial images that help assess widespread or large-scale damage after events like storms, bushfires or earthquakes.
- AI photo analysis: Advanced systems can now analyse photographs to detect structural damage, identify material types or estimate repair costs. This gets initial assessments completed faster and helps prioritise on-site visits.
- 3D property scans: Technologies like Matterport (or digital twin systems) create detailed 3D models of damaged properties, providing a precise and shareable record that can be used for scoping repairs, communicating with contractors or presenting evidence in disputes.
These innovations enable adjusters to reduce time spent on manual tasks, enhance their documentation and focus on their core responsibilities — making sound decisions based on evidence, interpreting policies fairly and ensuring all parties are treated justly.
Leading, not resisting, the change
For loss adjusters, the challenge is not to resist these technological changes but to lead in their responsible and effective adoption. The best adjusters are those who combine their technical expertise with the smart use of digital tools, ensuring that automation enhances — rather than undermines — the integrity of the claims process.
Key principles in using AI responsibly include:
- Checking automated outputs: Adjusters must continue to apply their expert judgement, verifying that automated assessments and estimates align with on-the-ground realities.
- Ensuring fairness: It’s vital to maintain fairness and accuracy for both insurers and insured parties, particularly when automated systems make recommendations or decisions.
- Protecting data: With digital tools comes the responsibility to safeguard sensitive client information and uphold the highest ethical standards.
- Investing in training: Adjusters and their teams must be trained not only in the use of new technologies but also in understanding their limitations and risks.
By maintaining oversight and ethical standards, adjusters can ensure technology serves the interests of all stakeholders — delivering faster, more precise and fairer outcomes.
The adjuster of the future
Looking ahead, the most successful adjusters will be those who embrace a hybrid skill set: combining deep insurance knowledge and technical understanding with an ability to harness the best available tools.
Future-ready adjusters will:
- Advise on complex claims: Whether handling major property losses, business interruption cases or liability disputes, human judgement and negotiation skills will remain critical.
- Leverage data and digital insights: The ability to quickly gather and analyse data from multiple sources — including drones, satellite imagery and 3D scans — will improve decision-making.
- Apply empathy and fairness: Good loss adjusting isn’t just about numbers; it’s balancing technical evidence with financial realities and human fairness.
In short, while the profession will continue to evolve, the fundamental skills that make a good adjuster — expertise, judgement and integrity — will remain indispensable.
Our role in maintaining the balance
Artificial intelligence and digital tools are transforming how insurance claims are managed, but they’re not replacing the need for experienced loss adjusters. Instead, these innovations are enhancing the adjuster’s role, allowing professionals to handle claims more efficiently and focus on areas where human input is essential.
The future of loss adjusting belongs to those who welcome these technological changes and use them wisely — ensuring every claim is managed with skill, fairness and professionalism. Our dedicated team of Sedgwick adjusters combines deep expertise with cutting-edge tools to handle any claim, no matter how large, complex or sensitive. With a commitment to excellence and innovation, we stand ready to deliver the best possible outcomes for our clients and their customers.
Learn more — If you would like to learn more, please contact [email protected]
