Loss adjusting works. The bottleneck is variance between adjusters, time to inspection, and capacity to absorb catastrophes.

A home and property insurer handles thousands of claims per month requiring expert assessment. Estimation variance between adjusters for the same damage ranges from 20 to 40 per cent. Average time from first notice of loss (FNOL) to inspection is 3-7 days, during which the policyholder cannot begin repairs. After a regional catastrophe (hailstorm, flash flood, freeze), claim volume can multiply tenfold in a week, but the adjuster network does not scale. Disputes over valuations consume legal resources and damage the customer relationship.

Tractable, Cape Analytics, Applied Sciences 2024