AI in Claims: Keeping It Efficient Without Losing the Human Touch

Think about your favorite local coffee shop. The staff greets you by name, knows your order, and maybe even chats about your weekend. Now imagine walking into the same place—but instead, a screen takes your order and a robot hands over your drink. It’s quick, but it doesn’t feel the same.

That’s what the insurance industry is dealing with right now. With AI and automation becoming more common in claims management, companies are speeding up processes—but there’s a real risk of losing the personal connection that customers count on, especially in stressful situations.

The solution isn’t to choose between tech and people. It’s to make them work better together.

We’re Spending More on Tech—but Customers Aren’t Happier

Insurers have spent billions upgrading their systems and tools to make claims faster and more efficient. But according to J.D. Power, customer satisfaction with claims is at a seven-year low.

Why the disconnect? Technology might make the process smoother, but when someone’s filing a claim after a car crash or house fire, they want more than speed—they want someone who understands what they’re going through.

Claims Are the Biggest Cost for Insurers

Processing AI in insurance claims is the most expensive part of running a property and casualty insurance business. Around 70% of every premium dollar goes toward paying claims and handling them.

That means insurers have every reason to make the process faster and leaner—but not if it sacrifices customer care in the process.

Bad Data Leads to Big Losses

Even the smartest system can make bad decisions if the data behind it is wrong. One study from MIT found that poor data quality can cost a company up to a quarter of its revenue.

Inaccurate data leads to pricing mistakes, claim errors, and confusion. It can even cause customers to lose trust if their claim is denied based on faulty information.

Customers Are Paying Attention to Claims Experience

It’s not just policyholders who care about AI in insurance claims—potential customers do too. Nearly half of U.S. consumers research how a company handles claims before buying insurance (Deloitte).

That makes the claims experience a key part of a company’s brand. If customers don’t feel supported when it matters most, they’ll take their business elsewhere.

Claims Jobs Are Changing, Not Going Away

With AI now handling basic tasks like paperwork and simple approvals, AI in insurance claims have more time to focus on what really matters: complex cases, problem-solving, and customer support.

Rather than replacing people, automation is helping them shift into roles where human judgment, empathy, and experience matter most.

When the Human Touch Really Counts

Some claims are straightforward and can be handled quickly by automation. Others need a real person involved. For example:

• Personal Injury Claims: At Aviva, technology handles routine steps, but for injury cases, they make sure a person is involved to provide empathy and support.

• High-Value Clients: At Criterion, a company that manages claims for wealthy clients, personalized service is key. Clients expect clear communication, fast responses, and someone they can trust.

• Avoiding Lawsuits: Legal expert Patrick Sodoro says that when claims are handled without enough personal interaction, things often go wrong—and end up in court. Talking to customers helps prevent misunderstandings.

Tech Helps, but People Still Matter

AI and automation can do a lot—they speed things up, reduce errors, and cut down on busywork. But when someone’s going through a tough time, they don’t want to talk to a bot.

As one insurance leader put it: “Automation is great for saving time and money, but you still need people to talk to customers when things go wrong.”

Even in major disasters, where drones and digital tools help assess damage, it’s people who show up, listen, and offer real support.