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Less Paper, More Support: How Claims Automation Is Accelerating Insurance
Insurance professionals know all too well the challenges of managing claims. Endless paperwork, repetitive manual tasks, and delays throughout the process can weigh down productivity—and settlements. Fortunately, there’s a solution with the potential to reshape how the insurance industry handles claims: claims automation.
The recent devastation of the California wildfires only highlights the urgent need for insurance technology. Catastrophic events cause surges in claims, straining resources and delaying support. By integrating advanced technologies like AI and machine learning, claims automation can streamline workflows and get claimants the support they so desperately need.
If you’re ready to transition from manual to automated claims, this guide will walk you through why you need to transform your painfully slow claims process.
Why Claims Automation Matters
The insurance industry is in the middle of a tech-driven transformation, and automation is a critical component of that shift. According to insights from our Insurance Technology Outlook 2025, 80% of insurance executives believe digital transformation is essential for survival.
Claims automation sits at the heart of this evolution. 75% of insurers are pursuing process automation as part of their digital transformation initiatives. This will allow insurers to tackle some of their most pressing challenges, including high operational costs and shifting customer expectations.
Here’s why claims automation is becoming non-negotiable for insurers aiming to maximize profitability while staying ahead of disruption.
Key Benefits of Claims Automation
1. Faster Claims Processing
Automation leverages AI to process simple and complex claims faster than manual workflows could manage. By eliminating bottlenecks, insurance companies can settle claims more promptly, building trust with their customers.
2. Cost Reduction
With repetitive data entry tasks and manual reviews automated, businesses significantly reduce operational costs. This allows firms to redirect resources toward high-value areas like customer service and product innovation.
3. Enhanced Accuracy
Manual errors, such as data entry mistakes, can lead to delays and inaccurate claims payouts. AI-powered claims automation systems minimize human error by validating information and flagging inconsistencies early in the process.
4. Improved Fraud Detection
Advanced AI models analyze claims data to identify patterns signaling fraudulent behavior. Proactive detection helps insurers avoid costly fraud-related payouts.
5. Better Customer Experience
Quick, accurate claims resolutions translate directly into higher customer satisfaction. Positive customer experiences build loyalty, which is critical for long-term growth in competitive markets.
6. Scalability
Automation grows with your business. Whether your organization processes hundreds or thousands of claims a month, automated systems handle scaling effortlessly without the need for additional staff.
Key Applications of Claims Automation
Automation offers versatility, impacting multiple functions within the claims management lifecycle. Here’s a look at the most significant areas where it can drive efficiencies and profitability.
Workflow Automation
From intake to settlement, automation platforms can manage claims throughout their lifecycle. For example, once a claim is submitted, AI tools can verify all documentation, identify missing information, and route it to the appropriate adjuster—all without human intervention.
Damage Assessment
Some claims, such as auto or property claims, require a damage assessment. AI tools equipped with image recognition can analyze photos submitted by claimants, estimate repair costs, and even approve payments in seconds.
Fraud Detection
Fraudulent claims cost insurers billions of dollars annually.1 Claims automation systems use predictive analysis and machine learning to spot anomalies, saving companies substantial amounts in payouts and investigative costs.
Communication Management
Automated systems can send policyholders timely updates about their claims, reducing the need for back-and-forth phone calls or emails. Personalized notifications and AI assistants like Concentrix’s iX Hello further enhance the customer experience.
Claims Analysis
Post-settlement data analysis is just as critical as processing claims. By automating this process, insurers can identify trends such as increased claims in specific geographies or months, enabling them to adjust pricing models or coverage plans proactively.
Real-World Challenges with Claims Automation
The potential of claims automation isn’t just hypothetical—leading insurers recognize the need and are acting on it.
According to our Insurance Technology Outlook 2025:
- Reducing operational costs is a major challenge: 88% of insurance executives believe reducing operational costs will be difficult.
- They are rich in data: 79% of executives said, “our customer data is surfaced at the right time to the right stakeholders to take action.”
- And emerging technology enabled: 37% of insurers are prioritizing claims processing automation for generative AI implementations.
- But lack outcomes from their investments: Only 29% of insurers are seeing increased productivity as a result of their AI investments.
The Future of Claims Management Is Automated
Insurers that embrace innovation gain a significant competitive edge in handling claim surges. By adopting automated claims solutions, insurers can streamline processes and provide faster support when customers need it most.
Now more than ever, the insurance industry has the opportunity to transform challenges into meaningful change. The longer businesses hesitate, the greater the risk of falling behind competitors prioritizing digital transformation.
¹ “Fraud Costs Americans Billions of Dollars Annually,” National Insurance Crime Bureau, November 13, 2023.
John Mejia
GVP, Sales & Account Management, BFSI, Concentrix
