Employee Retention in Insurance Claim Adjusting: A Growing Problem with Few Solutions


Summer 2023

Type of Culminating Activity

Student research paper


This paper defines and documents the growing problem of employee turnover and the failure by insurance and by claim adjusting companies to increase employee retention. According to industry sources, insurance is in the industry with the highest rate of employee turnover. This comes at a significant financial loss and what is called “contagious dissatisfaction,” resulting in a toxic work culture. Further, the growing problem of employee turnover in insurance claim adjusting comes at a time when nearly half of employee talent recruiters report that it is getting harder to find skilled candidates in a number of functional areas, including claims.

The problem can be traced to promises upon hire which do not match the reality of the working position, overworking claim adjusters in general, hiring claim adjusters as managers rather than managers of people who know claims, as well as a failure to mitigate the “aggregate of incoming,” which is defined in this paper as the total amount of daily emails, letters, attachments, calls, and all other claim-related items adjusters receive. If companies address these areas and work with adjusters to manage a reasonable claim pending, they will experience less turnover, higher employee retention, decrease financial losses, and improve their work culture.

Degree Program

Bachelor of Arts in Interdisciplinary Professional Studies


Margaret Sass, J.D., Ed.D.


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