For Storm Structure Inspections in particular there's a Toolkit to "Recalculate Filter Set" which will accomplish that. This same toolkit might exist in other Inspection Modules as well. Also, in 2015R2 (which I understand is very new) the Data Quality Tool has this as a data check (and provides the SQL for how to find the records) as well the ability to "Fix It" (I don't see the UPDATE statement in here) for this particular instance for many of the inventory modules.
How do I update the "most recent inspection" flag with SQL statements?
How to programatically update the "most recent inspection" flag on inspection records for Structure Inspections or any other asset type inspections?
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As far as actually using T-SQL to update the records, it's certainly possible if you have permissions, but personally I'd caution against it. When those toolkits run, there are more fields than just the "LATEST" field that get updated, and I think it may even vary module to module.