Picture walking into your regular café. The barista greets you with a smile, knows your name, and remembers how you like your coffee. Now imagine walking in and ordering through a touchscreen while a robot delivers your drink. It’s fast—but something’s missing.
That’s the crossroads insurers are facing today. AI and automation are speeding up claims processes, but they also risk stripping away the personal interaction that builds trust with customers—especially when they’re dealing with loss or stress.
Technology is here to stay, but it should enhance—not replace—the human experience.
Big Tech Spending, Low Customer Satisfaction
AI in insurance claims have spent billions on digital upgrades to improve claims processing. Despite that, overall satisfaction has dropped to its lowest point in seven years (J.D. Power).
Why? Because customers don’t just want fast service—they want to feel heard. Filing a claim often comes at a difficult time, and people still expect empathy, reassurance, and clear communication.
Claims Are a Major Expense—and Opportunity
AI in insurance claims make up the largest portion of costs for insurers—about 70% of every premium dollar goes toward paying and managing claims. Naturally, companies are looking to streamline this area.
But cutting costs can’t come at the expense of care. The goal should be to make the process faster and more accurate, while still being personal.
Bad Data Can Hurt Everyone
Technology can only go so far if the information it runs on is flawed. MIT research suggests that poor data quality can cost companies up to 25% of their revenue.
In insurance, that means incorrect claim decisions, pricing errors, and frustrated customers. Even skilled teams can’t do their jobs well if they’re working with unreliable data.
Claims Service Shapes Customer Choices
AI in insurance claims handling isn’t just important after someone becomes a customer—it influences whether they choose your company in the first place. Nearly half of U.S. consumers look into a carrier’s claims reputation before buying coverage (Deloitte).
A fast, fair, and supportive claims experience isn’t just nice to have—it’s a competitive edge.
Claims Roles Are Evolving, Not Disappearing
AI is now handling routine tasks like data entry and straightforward claims. That’s freeing up claims professionals to focus on more complex work—investigating unusual cases, supporting distressed customers, and using judgment where automation falls short.
These roles aren’t going away—they’re becoming more impactful.
Where Humans Make All the Difference
Not every claim can—or should—be handled by a system. Some cases need a human touch:
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Personal Injuries: Aviva combines automation with human support. When someone is injured, their team steps in to guide the claimant personally—because empathy matters.
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High-Value Clients: At Criterion, which manages claims for high-net-worth individuals, personal communication and responsiveness are just as critical as technical knowledge.
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Avoiding Legal Disputes: Patrick Sodoro, a legal expert, points out that lack of personal interaction can lead to miscommunication and lawsuits. Talking directly with claimants helps resolve issues early and fairly.
Tech Can’t Replace Empathy
Automation is transforming claims processing—it’s faster, more accurate, and scalable. But when customers are overwhelmed or upset, they want a real person to talk to.
As one Chief Claims Officer said, “Automation helps us reduce time and cost, but it doesn’t replace the need for human connection—especially when something goes wrong.”
Even in large-scale events like natural disasters, technology plays a support role. It’s people who listen, respond, and make customers feel supported.
