AI to dominate claims administration
90% of insurance professionals expect AI to manage end-to-end claims administration within two years, according to a new survey reported. Insurer hiring intentions are at a 15-year low.
The survey, conducted by insurance automation vendor Genasys, points to significant shifts in operational priorities for insurers. This rapid adoption rate suggests insurers are aggressively pursuing cost reduction and efficiency gains through automation. Lower hiring intentions may reflect a strategic pivot towards upskilling existing staff to manage AI-driven systems rather than backfilling traditional roles. Insurers may focus on roles requiring uniquely human skills, such as complex claims negotiation or customer relationship management. AI's increasing role in claims could pressure insurtechs to offer more sophisticated, AI-powered solutions to remain competitive. Incumbent technology providers will need to demonstrate clear advantages over in-house AI implementations and emerging specialized vendors.
