Insurers need an efficient way to reduce the costs associated with claims processes while supporting a positive claimant experience. In some cases, sending your adjusters out into the field doesn’t achieve these goals. Outsourced desk adjusting for insurance is the smart way to boost efficiency.
What Is Desk Adjusting?
Desk adjusting is an alternative to field adjusting. While field adjusters venture out to the site of loss to investigate the damage in person, desk adjusters work remotely, use technology to manage the claim remotely. By communicating with claimants, viewing photos and video, and examining documentation, they can investigate and resolve the claim in less time, without incurring travel expenses.
Desk adjusting doesn’t always make sense, but in some scenarios, it supports a much faster, more efficient claims process. For example, many simple auto claims can be handled virtually. The policyholder can submit photos as well as the police report, and the desk adjuster can facilitate the repairs and payout.
Desk adjusting may also be useful during claim surges caused by natural disasters. After a natural disaster, field adjusters may be overwhelmed. Insurance desk adjusting services can reduce the workload by handling some of the claims. Desk adjusters and field adjusters can even work together, with the field adjuster going out in person to collect documentation before handing off the file to remote desk adjuster.
Why Insurers Are Returning to Desk Adjusting
Virtual desk adjusting has been around for a while, but it deserves renewed attention due to a combination of technical capabilities and market pressures.
Our 2025 Insurance Operations Leaders Trends Report found that 48% of insurance operations leaders identified improving policyholder satisfaction as a top concern, and 48% identified reducing complexity and cutting costs as a top concern. Desk adjusting can help with both of these priorities. Long claims cycles frustrate policyholders and increase costs. Remote desk adjusting can result in shorter claim cycle times, enabling insurers to curb costs and improve policyholder satisfaction.
This is especially important now, when factors like inflation, nuclear verdicts, and natural disasters are causing claims costs to skyrocket. According to S&P, the U.S. property and casualty industry reported a net combined ratio of 101.6% in 2023, while the U.S. homeowners insurance line segment reported a net combined ratio of 110.9%. Underwriting performance improved in 2024, with net combined ratios of 96.5% and 99.7%, just barely squeaking in under the 100% mark to show an underwriting profit.
However, this improvement came at a cost. Insurers have been raising premiums, and many policyholders are frustrated. Some are shopping around for better deals, but USA Today says that an increasing number of homeowners are dropping their coverage. Premiums can only go so high before insurance simply becomes unaffordable, so insurers need other ways to control costs and improve underwriting performance – and desk adjusting is one practical option.
At the same time, many insurance companies are struggling to maintain a highly skilled workforce as workers retire in large numbers. The U.S. Census Bureau reports that 10,000 Baby Boomers reach age 65 every day. This can cause skilled labor shortages in any industry that depends on older, more experienced workers, including insurance. According to Property Casualty 360, BLS data shows that the insurance industry will have lost 400,000 workers to retirement by 2026. It’s hard to hire and train new workers fast enough to keep with turnover on this scale, but desk adjusting can alleviate some of the pressure.
The Strategic Value of Outsourced Desk Adjusting
Claims outsourcing for insurers is a strategic way to streamline the claims process. When insurers outsource desk adjusting, they can develop a strategic advantage with:
- Reduced operational complexity. Instead of having to oversee both field and virtual claims processes, and maintain the technology solutions required for the latter, insurers can simply outsource desk adjusting and focus on field adjusting.
- Operational agility. Outsourcing desk adjusting frees up talent and resources so you can allocate them to projects requiring in-house collaboration and expertise. Your claims volume may increase sharply during large-scale disasters or gradually as your company grows. If you handle all claims processes in-house, you’ll need to hire more staff to keep up with demand. With outsourced desk adjusting providing call surge support, you can scale without hiring. This allows you to respond to high-volume claims events without sacrificing quality. It also makes it easier to grow your book or expand into new markets without worrying about the drain on resources.
- Cost reduction. For many insurers, outsourcing desk adjusting is more cost efficient than trying to handle all claims in-house. In addition to reducing travel expenses, desk adjusting can reduce the costs associated with hiring, training, and technology. It also saves money by reducing claims cycle time.
- Policyholder Satisfaction and Retention. Policyholders don’t care whether you outsource desk adjusting, but they do care how long it takes you to resolve their claim. They also care about the cost of insurance. By speeding up claims processes and controlling costs, outsourced desk adjusting can boost policyholder satisfaction and retention.
Outsourcing vs. In-House: Key Considerations for Insurance Leaders
Just as field adjusters have their tricks of the trade, experienced desk adjusters use the right technology combined with the right best practices to facilitate a smooth and thorough remote claims experience.
Before deciding whether to outsource desk adjusting, or handle it in house, consider these questions:
- Do you have the right security and technology to support desk adjusting?
- Are your team members trained in desk adjusting best practices?
- Can you team easily flex to accommodate surges in claim volume?
- Can you manage in-house desk adjusting at a low operating cost?
- Are you prepared to hire and train desk adjusters?
If the answer to all of these questions is yes, it might make sense to keep desk adjusting in-house. Otherwise, you may want to start considering desk adjusting partners. The vendor you choose will have a direct impact on both your operating costs and your policyholder satisfaction, so compare your options carefully.
- Does the vendor guarantee consistent, timely and high-quality service?
- Will the vendor strengthen or damage your bonds with policyholders?
- Can the vendor easily accommodate claim surges during CAT events?
- Where is the vendor located, and will there be language barriers or time zone issues?
- Are the claims handlers licensed?
- Is the vendor SOC II certified for data security?
Covenir’s Comprehensive Approach to Claims and Desk Adjusting
When you choose Covenir to support your desk adjusting needs, you can rest easy knowing that your claims are being handled by licensed, U.S.-based professionals. We’re SOC II certified, and we offer a Call Surge Guarantee. Our Covenir InteliClaims Advantage combines FNOL, claims and desk adjusting and subrogation into a seamless, scalable call center solution that can help you control your costs without sacrificing policyholder satisfaction.
Insurance operations challenges such as rising claims costs and talent shortages aren’t going away. To succeed, insurers need to leverage strategies that boost efficiency and lower costs.
Want to see how Covenir’s insurance BPO claims support could help you cut costs by up to 60% while boosting policyholder satisfaction and closing claims faster?
Learn more about the Covenir IntelliClaims Advantage.