Stormy times ahead for claims market, warns Gallagher Bassett

Historically, seasonal surges, regional risk patterns and established response models allowed insurers and loss adjusters to plan with reasonable certainty. Today, predictability is eroding, according to Gallagher Bassett, in news that will be of interest to risk managers and other involved in all kinds of insurance, including captives.

According to the company the result is a claims environment where weather events are not only increasing volume, but also driving higher repair costs, more complex assessments and greater pressure on loss adjusting resources.

According to Neil Mather (pictured), head of internal operations within Gallagher Bassett’s Europe, Middle East & Asia Loss Adjusting business, the industry is experiencing a sustained rise in weather-related claims, driven by more frequent, intense and unpredictable events.

“A single claim may involve storm damage combined with flood ingress, or a lightning strike resulting in fire-related losses,” said Mather. “Greater complexity changes the operational reality of loss adjusting. It requires more comprehensive technical assessment, closer coordination with supply chain partners and a more agile response model.”

The combination of high claims volumes, more complexity and greater surge demand is challenging the wider insurance market. As climate and catastrophe scenario risks intensify, insurers are refining how they assess, price and manage risk. According to Gallagher Bassett’s The Carrier Perspective: 2026 Claims Insights report, 57% of UK insurers are enhancing risk assessment and modelling, and the same proportion are increasing premium rates.

“These are not marginal adjustments,” said Mather. “They show a market recalibrating around a new risk reality. Insurers are becoming more precise in how they price risk, but pricing alone cannot solve the operational challenge. The point of claim, where adjusters must manage cost, is where volatility becomes real for customers.”

In response, Gallagher Bassett said that it has adopted an integrated field and desk adjusting model, enabling resources to be deployed flexibly based on demand. The organisation has also invested in data-led decision making, validation processes, and real-time management information to support prioritisation during surge periods.

GB’s operating model is designed to address both sides of this challenge: the cost pressure created by higher claim volumes and repair complexity, and the operational complexity of managing losses with multiple causes, suppliers and client needs.

“Our response is built around operational agility and control,” said Mather. “Our model allows us to deploy resources flexibly when demand shifts, while ensuring claims are assessed accurately, progressed efficiently and managed with level of care our clients expect.”

“At the same time, service cannot be reduced to process alone,” said Mather. “Processes provide an important guide, but our people need the flexibility to respond to the situation in front of them. That means clear, one-to-one communication with claimants to understand what matters most.”

Looking ahead, weather-related impacts are expected to remain a key driver of claims activity and cost. The future of loss adjusting will be shaped by even greater investment in data and analytics, increased use of technology and AI, more flexible catastrophe response frameworks, and stronger collaboration between insurers, clients and adjusting partners.

“As weather events drive higher costs and more complex claims, the ability to respond at scale becomes critical,” said Mather. “By drawing on capability across GB’s wider global network, including major operations in the US, Australia and Asia, we can create a 24-hour claims operation when demand requires it. That gives clients greater continuity and control during surge periods, while helping ensure complex losses are assessed, prioritised and progressed without unnecessary delay.”

In Mather’s words, capacity alone is not enough in an increasingly volatile environment: “Clients want confidence that their loss adjusting partner can respond to challenging conditions with resilience and reliability. Gallagher Bassett is structured to manage volatility, not just react to it. Even in periods of heightened disruption, our focus remains the same: delivering consistent, high-quality claims outcomes with speed, control, empathy and confidence.”

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