Contrary to fears about AI and automation displacing human workers, claims handlers see technology as an opportunity to improve processes, both for themselves and their customers.

This is amongst the findings of research carried out by insurtech Sprout.ai, which uncovers the most “tedious elements” of the claims processing role across the UK and the US. Some 55% of respondents struggle with reviewing and processing claims documents and evidence, and the same number are unhappy with compliance and reporting.

Not all claims handlers are embracing technology, however. Some 5% of claims handlers are not, according to the report.

The findings also provide an insight into what customers want, from the perspective of those who are dealing with customers every day. Some 28% of claims handlers say they receive complaints about delays or lack of communication; 20% say they experience requests for more transparency in the claims process; and 17% say they receive suggestions for faster processing.

Roi Amir, CEO of Sprout.ai, commented: “Claims handlers are responsible for the most important moment for an insurance carrier: delivering on their service promise. They know the claims process inside and out, and they’re deeply invested in making it easier for customers as well as themselves, as pressure can be high at these critical moments. The report confirms what we already knew: handlers are becoming increasingly frustrated by challenges around delays and customer communication – and they are now seeing technology as the answer. This is a really promising development for the insurance industry: technology has the potential to turbocharge claims processing. For instance, using AI can take a typical claims process from 30 days to real time and free up handlers’ time to deliver more personalised and empathetic customer communication.”

The research also reveals a divide between UK and US claims handlers’ experiences. Over twice as many UK claims handlers are struggling to retrieve and review claims documents and evidence, in comparison to their US counterparts (36% vs. 14%). Amir suggests this points to an urgent need for UK insurers to transform document management systems or fall behind on the global insurance stage.

The research was conducted during March and April 2024 by Opinium.