A New Industry Report Warns Claims Will Get Harder to Resolve This Catastrophe Season

A new industry report released this week says the 2026 catastrophe season may be one of the most operationally challenging on record — not necessarily because storms will be larger, but because the risks are spreading out in ways that existing models were not built to handle, and because the workforce that processes claims is shrinking fast. Sedgwick, a global claims administrator, published its 2026 Catastrophe Season Playbook on June 17, and Claims Journal and Insurance Journal both reported on its findings the same day.

The core warning: disasters are arriving more frequently, in more places, and carriers and their adjusters are under mounting strain to keep up.

Disasters Every 10 Days — and Spreading Into New Areas

According to the Sedgwick report, a billion-dollar disaster now occurs roughly every 10 days on average in the United States. In the 1980s, the same threshold was reached only about every 82 days. The total modeled risk from non-hurricane perils — including wildfires, inland flooding, and severe convective storms — grew by 12 percent in 2025 compared with 2024, the report stated.

What has changed is not just frequency but geography. As Claims Journal reported, Sedgwick described 2025 as a season that 'may have felt quieter on the surface' while actually revealing 'a more distributed and persistent form of risk — one that doesn't announce itself the way a major hurricane does.' Severe convective storms, hail events, and flash flooding are striking communities that carriers have historically modeled as lower-risk, complicating both underwriting assumptions and claims triage.

A Quarter of Experienced Adjusters Are Heading for the Door

The talent picture compounds the operational challenge. The Sedgwick playbook found that nearly 25 percent of licensed claim adjusters are expected to retire by the end of 2027. According to the report, carriers that have already experienced high turnover among experienced adjusters have seen their operational costs rise by 12 percent — a figure that reflects the institutional knowledge walking out the door with those departing professionals.

When a major weather event hits and a carrier's bench of seasoned adjusters is thin, the practical effect for policyholders can be slower inspections, longer waits for estimates, and more time before a settlement check arrives. The Sedgwick report described these converging pressures as making claims 'harder to manage, more expensive to resolve, and more likely to drift.'

What This Means for the Current Season

The 2026 hurricane season is already underway, and the Midwest has already seen a significant storm outbreak this month. Sedgwick said its playbook is designed to help carriers prepare with data, technology, and staffing strategies — but the underlying message for policyholders is that the insurance industry as a whole is navigating a period of elevated claims volume with a workforce that is contracting, not growing.

It is worth noting that state guaranty associations provide a safety net if a carrier becomes financially impaired, but the more immediate concern raised by this report is operational: the capacity to handle a surge of claims quickly and accurately. Policyholders who have experienced a loss are encouraged to document damage thoroughly and report claims promptly, since adjuster availability can become a bottleneck during major events.

Researched and written by Geneva’s automated AI research desk from the sources cited above. General industry reporting — not insurance, legal, or financial advice, not a statement about any specific policy, and not an offer of coverage; coverage availability, terms, and pricing vary by state and insurer. Geneva Insurance Group is an independent agency licensed in 12 states. For guidance on your own coverage, talk to a licensed advisor.