US claims market enters 2026 with CAT pressure, digitization and cost squeeze - Crawford

US insurers and claims providers are preparing for a more volatile operating environment in 2026, with catastrophe losses, automation, customer expectations and cost pressures emerging as the dominant forces shaping the claims landscape.

Those themes were highlighted in a new industry analysis from Crawford & Company, which examined how carriers, TPAs and brokers may need to adapt their claims operations as market conditions continue to evolve.

Catastrophe recovery and resilience are expected to remain a central focus for the US claims sector as loss activity continues to trend upward.

The analysis points to a shift away from purely reactive catastrophe response toward more proactive preparedness. That includes building surge-ready staffing models, using catastrophe analytics to prioritise adjuster deployment, and working more closely with contractor and repair networks to secure capacity ahead of major events.

These priorities reflect broader concerns across the insurance market that high-loss catastrophe years may become more common rather than exceptional. Recent studies from reinsurers and catastrophe modeling firms have also suggested the industry should expect more frequent periods of elevated losses.

Data analytics and automation are increasingly central to improving efficiency and transparency across the claims lifecycle.

Many large US carriers have moved beyond experimental pilots and are now deploying robotic process automation and digital first notice of loss (FNOL) systems at scale, particularly in personal lines claims operations.

Industry studies suggest that fully digital claims journeys - including online FNOL and automated damage assessment - can reduce settlement times by several days while improving operational efficiency and customer satisfaction.

At the same time, claims leaders are trying to balance digitalization with the need for personalised service in more complex losses.

The analysis notes that a growing proportion of insurance buyers now consider an insurer’s claims reputation before placing business, meaning the handling experience can directly influence underwriting relationships and broker recommendations.

Automation is therefore increasingly being used to process routine, low-complexity claims while allowing adjusters to focus on high-severity or emotionally sensitive cases. Over-automating complex claims, the report suggested, could risk damaging trust and weakening customer relationships.

Beyond catastrophe exposure and technology adoption, insurers are also facing several structural pressures that are likely to influence claims strategies through 2026.

These include rising repair and replacement costs, social inflation affecting liability claims, and ongoing shortages of experienced claims professionals.

Recent benchmarking from WTW has indicated that US property and casualty claims costs have been increasing faster than general inflation, placing additional pressure on insurers’ combined ratios.

As a result, carriers are paying closer attention to claims leakage, vendor management and fraud detection while also exploring ways to build more agile operating models.

Operational flexibility - such as the ability to scale headcount during catastrophe events or deploy specialist expertise quickly - is emerging as a key differentiator.

The competition for experienced adjusters and technical claims specialists remains intense, particularly following several years of heavy catastrophe activity and an ageing workforce.

The analysis suggests insurers and claims providers will need to invest more heavily in both recruitment and training as technology, regulation and claim complexity continue to evolve.

The conclusion is that while the exact trajectory of the market cannot be predicted, organizations can improve their resilience by investing in scalable catastrophe playbooks, stronger data capabilities and operating models that can flex with market and weather volatility.

The findings were outlined in the report Built for the Future: US Predictions Report 2026, which brings together insights from leaders across Crawford’s US operations.