InsurTech focus misses claims
Monique Tallon argued that many InsurTechs concentrate on underwriting innovation while leaving post‑loss claims fulfillment — where practical inefficiencies persist — relatively unaddressed. The comment highlights a recurring product‑market gap between risk selection and claims execution. (x.com)
A lot of insurance technology still helps carriers pick risks and price policies, while the slowest work often starts after a customer files a claim. (jdpower.com) J.D. Power said on December 2, 2025 that customer satisfaction is highest when claims stay digital from first notice of loss through updates, but many customers still have to leave apps and websites to finish key steps. In the same study, 22% of customers used multiple channels to answer the same question. (jdpower.com) The same J.D. Power study found insurers delivered adequate digital status updates only 22% of the time. Just 36% of auto claimants and 31% of homeowners claimants received updates through a mobile app, even though app-based updates scored highest. (jdpower.com) That gap sits in the part of insurance customers feel most directly: claims is the process of reporting damage, proving what happened, and waiting for payment or repair approval. The National Association of Insurance Commissioners says delays, denials, and unsatisfactory settlements are among the most common reasons consumers file complaints with regulators. (naic.org) Insurance companies and startups have spent years improving the front end of the business, where shoppers get quotes and buy coverage. J.D. Power said on May 14, 2025 that 47% of auto insurance buyers now purchase through digital channels, more than agents at 35% and call centers at 17%. (jdpower.com) Venture money has also narrowed. CB Insights said insurtech deal count fell 28% year over year to 362 deals in 2024, while funding dropped 4% to $4.5 billion, and the two largest property and casualty deals went to artificial-intelligence-focused startups Altana AI and Akur8. (cbinsights.com) Large carriers have pushed more visibly into underwriting tools as well. Carrier Management reported on April 28, 2025 that American International Group said its artificial-intelligence systems were reviewing 100% of private and nonprofit submissions in some financial-lines businesses and were aimed at handling more than 500,000 excess-and-surplus submissions by 2030. (carriermanagement.com) Claims has its own constraints that make software harder to standardize. A claim can involve photos, repair estimates, medical records, adjusters, contractors, coverage disputes, and state rules, all arriving after a storm, crash, fire, or injury rather than in the cleaner format of a quote request. (naic.org) When claims systems fail, insurers risk losing customers, not just processing claims more slowly. J.D. Power said 52% of auto and homeowners customers who rated their digital claims experience “poor” or “just OK” were likely to leave or not renew, versus 4% among customers who rated it “excellent” or “perfect.” (jdpower.com) The result is a familiar split in insurance technology: faster quoting on the way in, heavier manual work on the way out. Until more of the post-loss process works without repeated calls, missing updates, and regulator complaints, claims will remain the place where insurance feels least digital. (jdpower.com)
