Loss adjusters gear up for tough times: McLarens

From climate crises to cyber risks, today’s toughest challenges are redefining loss adjusting with talent, tech and sustainability at its core.

Graham Smart, chief commercial officer of McLarens with three decades of experience in the industry, spoke to AIRMIC Today about the pressing need to change tactics.

Smart highlighted: “In our core sector of general loss adjusting, we are witnessing continued growth.” 

This spans property and casualty, energy crisis management, construction engineering, forensic accounting and natural resources.

McLarens has expanded into “adjacency services,” complementary offerings to the claims process, as according to Smart, “clients are looking for consolidated solutions, wanting to deal with fewer service providers due to regulatory and compliance regimes, and desiring a more holistic approach to service delivery”. 

Claims handling is becoming increasingly specialist-focused, as Smart noted: “There’s a focus now on technical delivery, coupled with expectations for a more immediate response.”

He emphasised the growing need for speed in claims resolution, driven by cost-of-capital pressures and heightened client expectations.

Talent and tech

Talent is a key concern in the insurance sector, and Smart reflected: “For years, we’ve heard about the demographic time bomb in loss adjusting. We’ve focused on bringing new talent into our business internationally.” 

This approach is part of a broader strategy to ensure leadership continuity and technical expertise, and McLarens’ Aspire programme, a global initiative to develop future leaders, is a cornerstone of this effort. 

“Our first Aspire cohort will present to our global management team this June,” Smart shared.

On the technology front, the company has made significant investments in systems and data solutions. Smart highlighted the McLarens Gateway, an innovative tool that provides clients with direct access to insightful data. 

“This helps with risk control and management,” he said, underscoring the importance of data in today’s insurance landscape.

When it comes to emerging risks, climate change leads the list. 

“Global warming is driving more flooding events, cyclones and hurricanes,” Smart explained, adding that other challenges included the energy transition and the risks posed by lithium batteries, cybercrime and political violence.

“The extended supply chain also presents a real challenge from an underwriting perspective,” he said, citing delays in sourcing replacement equipment as a key issue in mitigating losses. 

Smart also flagged the “tariff wars” and their impact on cost and availability as areas of concern.

As risks grow more complex and interconnected, the role of loss adjusters is evolving, and Smart highlighted the enduring importance of human expertise: “Loss adjusting has always been about people who manage expectations, deliver empathy and find solutions. That remains as important today as ever.”

Technology plays a supportive role, enabling faster data analysis and loss assessment, yet Smart is clear: “Technology assists but will never replace human knowledge and experience.” 

The balance between digitisation and human insight is critical to delivering effective claims solutions. “Expectations have always been high, and there’s more dialogue now, especially with risk managers carrying more risk themselves,” Smart said. 

Pressing concerns

There are three areas that Smart highlighted as growing worries. “The first is cyber, because it’s a growing and constantly evolving threat, not just to our clients, but to our business as well. We’re making significant investments to stay ahead, from improving our internal resilience to building out our cyber response capability globally. 

“Cyber affects every sector, and its potential to cause systemic disruption makes it one of the most pressing risks businesses face.

“Second is geopolitical risk; we’re seeing increased instability in many parts of the world, with wide-ranging impacts on supply chains, business continuity and claims complexity.

“As a global market, we need to remain agile and informed.”

Finally, Smart mentioned how we were now experiencing the effects of climate change first-hand. “There’ll be more frequent and severe cat events, and growing demand for sustainable claims solutions. 

“We have a responsibility both to reduce our own environmental impact, and to help our clients adapt to this new risk landscape." 

For risk managers, Smart offer both a roadmap and a rallying cry. Whether it’s tackling emerging risks, leveraging technology or nurturing talent, the key is adaptability. 

“It’s about understanding challenges, finding solutions and getting businesses back up and running as quickly as possible,” he concluded.

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