Report Signals Shift in Demographics of Policyholders, Claims Service Expectations

Demographic shifts and rising service demands are influencing retention and claims performance across the industry, according to a new report.

New findings from Sedgwick’s 2025 Loss Adjusting Insights Report show widening gaps in customer expectations that are reshaping how insurers approach property claims service. During a February Sedgwick webinar, Jenny Scheffler, vice president of business development, and Nate Ritland, vice president of client services, walked through the report’s results and delved into the impact of these demographic shifts and rising service demands.

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According to Ritland, only 32% of Gen Z homeowners describe themselves as “very satisfied” with their insurance company, compared with 45% of Gen X and 47% of millennials. noted that millennials and Gen Z now make up the largest share of insurance buyers, overtaking Gen X and baby boomers. Nearly half of younger policyholders want flexible coverage options, digital‑first engagement and on‑demand access, and 40% of millennials and Gen Z respondents said insurance policies lack transparency.

“Customers expectations aren’t slowing down. Speed, convenience and personalization are no longer differentiators— they’re the foundation,” Ritland said.

Scheffler and Ritland also said the report’s findings reflect broader pressures shaping the claims experience. Rising construction costs—driven in part by tariffs on materials from Canada and Mexico—are lengthening repair timelines and increasing claim severity. The report notes that tariffs could raise the cost of imported construction materials by more than $3 billion, while ongoing labor shortages continue to strain contractor availability. These delays make policyholders more sensitive to communication gaps, unclear timelines and inconsistent updates.

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Climate‑driven volatility is also influencing expectations. The report documents 54 global weather events exceeding $1 billion in losses in 2024, with total weather‑related damages reaching $368 billion. As insurers reassess risk, raise premiums or reduce their presence in high‑risk areas, policyholders increasingly expect proactive communication and clearer explanations of coverage .

Scheffler and Ritland link these pressures to retention challenges. They said 59% of insurance customers say their expectations for support are higher than a year ago, 54% have switched carriers due to poor service rather than price and 86% are willing to pay more for a better customer .

“Customer‑centric experiences..are now essential to attract and retain policyholders,” Ritland said.

Policyholders want self‑service options, proactive updates, real‑time status tracking and access to a human when needed.The experts also noted that customers increasingly expect insurers to communicate proactively rather than reactively and to provide clear explanations of coverage decisions without repeated follow‑up.

Ritland noted during the webinar that, “claims communication ended up being the biggest customer service gap today.”

Generational differences are shaping how carriers define timely and clear communication. The report that younger policyholders expect immediate updates and digital tools, while older customers may prefer personal interaction and detailed explanations. The report identifies this divide as a key challenge for property claims teams.

Digital capabilities continue to influence customer expectations. Sedgwick highlighted rising demand for real‑time claim visibility and positioned technology as a support tool rather than a replacement for adjusters. The report reinforces this point, noting that AI is increasingly used to streamline claims processing and support adjusters with predictive insights, while human judgment remains essential for complex or sensitive decisions.