How AI is being deployed for insurance claims

July 30, 2025 4:07 PM

Person using a virtual touch screen pressing an inscription that reads: claim accepted.

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More than half of insurance professionals anticipate deployment of AI in the next 12 to 18 months, according to recent Digital Insurance research which looks into the state of AI adoption across the insurance industry. The research suggests operational efficiency is a priority in adopting AI tools, and improving customer experience.

The following stories and InsureThink opinion articles are a part of a series on how AI is being deployed in claims.

Applying AI to claims data solves complex challenges

Insurers are using AI to modernize their claims operations, and better respond to claims handling legal challenges.

The claims challenges insurers want to solve using AI tend to revolve around data – as do the challenges that AI could create. Insurers and insurtechs can use AI to better manage data, third-party administrators, liquidity and customer service.

Claims delays, bottlenecks, reduced visibility ripe for AI solutions

The insurance industry has a host of problems in claims operations that could be solved with AI, but also some challenges that using AI for claims can create.

Disbursement delays, liquidity bottlenecks, disorganized or inaccessible data, and a lack of visibility on claims funds are a few areas commonly cited in a survey of 200 senior U.S. and U.K. insurance industry executives published by Vitesse in May. Costs are also a challenge, with 52% of executives surveyed in a recent Digital Insurance report saying the cost of AI inhibits return on investment.

Can AI adjust insurance claims?

A breach of contract suit between AI software and technology providers in Texas could have greater significance for how AI is used for adjusting insurance claims.

The plaintiff, Kanda Software, and defendant Claims AI, had struck a deal in April 2024 to work together to use AI technology to collect evidence and assess damages in homeowners insurance claims. While the two companies ended up in court rather than in the marketplace, the possibility of AI adjusters could conflict with many U.S. states that require insurance claim adjustments be done by licensed professionals. Only 16 states do not require insurance adjuster licensing, according to AdjusterPro, a training and licensing provider for insurance claims.

How is tech changing insurance roles?

Kimberly Burdi-Dumas, vice president of insuretech at DocuSketch, shared responses with Digital Insurance about how tech is changing the insurance industry including the specific roles that will be most impacted by adoption.

AI's impact on claims processes and procedures – Part 1

Whether a company has fully embraced the adoption of artificial intelligence (AI) into its processes or is just gingerly entering into this space, the reality is that it is permeating every aspect of insurance. For claims, it has tremendous potential to expedite everything from the first notice of loss (FNOL), to reviewing and capturing the scope of the loss, setting the reserves and determining the final payout for policyholders.

AI's impact on claims processes and procedures – Part 2

Insurance claims encompass vast amounts of data, and AI's ability to assist with summarizing information can help streamline the process for adjusters and customers. The data derived from claims can also enable insurers to be more proactive in helping customers prevent recurring losses by using technologies like Internet of Things (IoT) sensors, identify and mitigate existing risks and highlight properties or issues that may require specific endorsements. It changes the role of insurers from being simply reactive to being proactive, saving time, money and resources for everyone.

How do insurers leverage AI in climate-related claims?

Digital Insurance interviewed Somesh Mukherjee, vice president of solution architecture at ACORD Solutions Group, to learn more about how AI is used throughout the process for weather-related claims.

InsureThink AI's role in catastrophic events and claims

According to the National Oceanic and Atmospheric Administration (NOAA) the United States endured 27 confirmed billion-dollar weather and climate disasters in 2024. That figure is on track to increase by nearly 20% by the end of 2025. And whether we are talking about declared "nat cat" events, "kitty cats" or other instances where claims volume and severity spikes, the impact on insurers is felt across the business—from the bottom line to the frontline insurance professionals working to make policyholders whole after reporting a loss.

InsureThinkComplex policy review: The last frontier of AI in insurance

Even as AI is helping to reshape the claims process, for instance, insurers have been slow to embrace the significant time-saving and accuracy benefits that it can bring to the policy review and interpretation that undergirds the work in complex claims.

This is the last frontier of AI in insurance. Insurance firms that apply AI to policy analysis won't just cut costs—they'll accelerate legal-grade decision-making, retain institutional expertise, and position themselves at the forefront of an industry undergoing rapid transformation.

InsureThink How AI is transforming property restoration—and why insurers should care

One of the most time-consuming aspects of the claims process is the initial inspection and scoping of property damage. Traditionally, adjusters and restoration contractors conduct manual assessments—often duplicating efforts. Today, restoration companies are using AI-powered tools, including image recognition and 3D modeling, to capture and analyze site conditions more accurately and efficiently.