When Life and Health Claims Meet the Adjuster Shortage: What Agents Should Know

The adjuster shortage is part of a claims workforce shift in 2026. Experienced claims professionals are retiring, entry-level hiring is weakening, and insurers are using AI for more routine work. In life and health insurance, examiners, adjudicators, and benefit specialists handle many claims rather than field adjusters, but the same workforce pressures still matter. Policyholders may encounter more automation and fewer human touchpoints. For agents, understanding these changes can make the insurance claims process easier to explain and help protect client trust when a claim feels slower, less personal, or more complicated than expected.

What the Adjuster Shortage Looks Like in 2026

The workforce numbers show why carriers are rethinking claims operations. ^[1]Sedgwick reported that nearly 25% of claims adjusters are expected to retire by the end of 2027, although that estimate comes from its property-claims and catastrophe work. Meanwhile, ^[2]Insurance Journal reported that entry-level adjuster job postings were down 50% from 2025 and overall adjuster postings were 55% below their post-pandemic peak.

The ^[3]U.S. Bureau of Labor Statistics projects employment for claims adjusters, appraisers, examiners, and investigators to decline 6% from 2025 to 2035, while still producing about 21,600 openings each year as workers change occupations or leave the labor force.

So the adjuster shortage isn't simply about empty desks. It also reflects claims adjuster retirements, reduced junior hiring, automation, and the loss of experienced judgment.

How the Adjuster Shortage Can Affect Life and Health Claims

Life and health claims have different workflows than property claims, but they still depend on experienced people to review documentation, coverage, eligibility, medical information, and exceptions. BLS notes that health claims examiners review medical claims, while life claims examiners review causes of death and other policy details.

Meanwhile, AI in claims handling is expanding. ^[4]Aetna reported in 2026 that its AI-supported Claims Assist Manager reduced processing time by more than 20% for complex health claims requiring manual review. ^[5]IBM also describes life and annuity carriers using automation for document collection, policy verification, benefit calculations, and routine adjudication.

That can improve speed. However, files outside standard rules may still require experienced human review.

Why Agents Need to Understand These Changes

The insurance agent role in claims is not to make the carrier’s claim decision. It is to help clients understand what happens next, what information is needed, and where to direct questions.

That becomes especially important during an adjuster shortage. When clients expect immediate answers but encounter portals, automated messages, or changing contacts, agents can reduce uncertainty by setting realistic expectations before frustration builds.

Agents can also explain that automation doesn't necessarily mean a claim is being ignored. Routine steps may be processed digitally while exceptions receive human attention.

What Clients Are Noticing on the Claims Side

Client expectations in claims are shaped by experiences with banking, retail, and other instant digital services. Insurance often cannot move that quickly when medical records, beneficiary information, coverage questions, or additional documentation are involved.

Common friction points may include:

• Longer gaps between meaningful updates.
• More digital-only forms, portals, and automated messages.
• Requests for documents that clients thought they already submitted.
• Confusion about whether a person or automated system is handling the file.
• Delays when a claim requires escalation or manual review.

The ^[6]International Claim Association has emphasized that AI can remove repetitive work in life claims, while human judgment, communication, empathy, and accountability remain essential.

Practical Ways Agents Can Support Clients During Claims

Agents cannot control carrier staffing, but they can make the client experience more manageable.

• Explain the process early. Outline typical steps, required documents, and who makes the final decision.
• Avoid promising exact timelines. Give ranges when appropriate and explain what can create delays.
• Help organize documentation. Missing forms, medical records, beneficiary information, or signatures can stop progress.
• Track key milestones. Note when the claim was submitted, when documents were delivered, and when follow-up is appropriate.
• Know when to escalate. If updates stop, instructions conflict, or a claim appears stuck, help the client reach the appropriate carrier contact.

This is where the insurance agent role in claims remains valuable even as automation grows.

Quick Checklist for Agents

To prepare for the adjuster shortage and changing claims workflows:

• Review each carrier’s current claim-submission and escalation process.
• Learn which life and health claims are commonly automated.
• Set client expectations before a claim occurs.
• Encourage clients to keep complete policy and beneficiary records.
• Document claim-related conversations and follow-up dates.
• Stay current on carrier technology, staffing, and service changes.

The adjuster shortage is ultimately a service challenge as much as a staffing challenge. Agents who understand the changing insurance claims process can help clients navigate uncertainty, keep communication clear, and preserve trust when insurance matters most.

References

1. [1] Sedgwick’s 2026 Catastrophe Season Playbook reported that nearly 25% of claims adjusters are expected to retire by the end of 2027. Read more
2. [2] Insurance Journal reported that adjuster job postings were down 55% from their post-pandemic peak, while entry-level adjuster postings fell 50% from 2025. Read more
3. [3] U.S. Bureau of Labor Statistics projects employment for claims adjusters, appraisers, examiners, and investigators to decline 6% from 2025–2035 while still averaging about 21,600 replacement openings annually. Read more
4. [4] Aetna reported that its AI-powered Claims Assist Manager reduced processing time by more than 20% for complex health claims requiring manual review. Read more
5. [5] International Claim Association examined how AI is changing life insurance claims while emphasizing the continuing importance of human judgment, communication, and accountability. Read more
6. [6] IBM explored how AI and automation are reshaping life and annuity claims, including document collection, policy verification, adjudication, and claimant communication. Read more

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