As catastrophic weather becomes more frequent and commercial property values climb, loss severity is rising fast – and adjusters are under growing pressure to evolve how they respond.
According to Andrea Phinney (pictured), a new executive general adjuster at Sedgwick in Halifax, that evolution is already underway inside large loss adjusting teams like Sedgwick’s Major & Complex Loss (MCL) division in Canada. The key change? A shift from reactive claims handling to proactive partnership.
“Loss severity obviously continues to rise,” Phinney said, citing a mix of climate-related risks, supply chain disruptions, and increasingly complex litigation trends as compounding drivers. In response, adjusters need to step in earlier, plan more strategically, and bring technical depth to the forefront of their work.
Sedgwick’s MCL team, she said, is moving toward earlier involvement in claims – building frameworks with brokers and clients before a loss occurs, so that when disaster strikes, roles and expectations are already defined.
That early engagement model allows adjusters to tailor responses to each commercial client’s unique risk profile.
“Knowing what the business is, the type of business, how they approach certain situations, what kind of communication they want, how they want us deployed,” Phinney said, is crucial to delivering value when a loss actually hits.
In today’s high-stakes environment, technical excellence is only one part of what clients expect from loss adjusters. Businesses – especially those managing large or high-risk commercial operations – now demand collaboration, transparency, and more control over how claims unfold, Phinney said.
“Clients really want more involvement in how their buildings are repaired,” Phinney said. That extends to choices about materials, contractors, timelines, and communication preferences. “Is it text? Is it Teams meetings? Is it in person? Do they just want an email?”
This marks a notable shift in client expectations – and one that many adjusters will need to adapt to if they want to stay relevant.
Phinney argued that the role of the adjuster is evolving beyond investigation and reporting. Large and complex claims increasingly require adjusters to act as risk advisors, client liaisons, and decision-making partners throughout the lifecycle of a loss.
“It’s really about being more than just a technical adjuster or a really great independent adjusting firm,” she said. “It’s about being a trusted partner in a crisis.”
Looking ahead to 2025 and 2026, Phinney believes the biggest challenge in major loss adjusting is the accelerating complexity of claims. As catastrophic events increase in both frequency and severity, adjusters are finding themselves at the nexus of overlapping coverages, multiple stakeholders, and escalating costs.
“We’re seeing continued inflation in material and labour,” she said, underscoring how volatile pricing has made accurate scoping and early reserve setting more important than ever. These early steps can dramatically shape the trajectory of a file – especially in high-stakes, multi-party losses.
But technical precision alone isn’t enough. Phinney said today’s major loss adjusters are being asked to combine deep subject-matter expertise with human-centered communication. Clients want clarity, consistency, and calm under pressure – qualities not always emphasized in traditional technical training.
“You’re not always dealing with individuals on their best day,” she said. “You really have to be mindful of that.”
Technology is raising the bar for transparency, Phinney added. Clients now expect real-time updates and full visibility into how their claims are progressing. That includes clarity on what’s covered, who’s handling the file, estimated timelines, and next steps – especially during prolonged or emotionally charged situations.
“They want to know what’s happening, who’s going to be working on their business, how long it’s going to take,” she said.
The challenge for adjusters is to provide that visibility without overpromising or overwhelming. Phinney emphasized the importance of setting clear expectations from the outset – painting a “30,000-foot” view of the claim lifecycle while flagging potential issues early to avoid surprises down the line.
As the stakes grow higher, so does the emotional weight of the job. In the large loss sector, Phinney said, the human impact is often as significant as the financial one. That’s why adjusters must be “nimble, collaborative and really deeply empathetic” – able to lead with both strategy and compassion in the face of crisis.
