Editor's Note: This is a part of a series examining the use of AI in the claims space.
How are insurance companies addressing or planning to address employee skill gaps? More than half, 55%, of department heads or directors say that their department is at least somewhat understaffed,
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.
How is tech impacting various roles in the insurance organization–specifically in claims related areas?
Technology is redefining insurance roles from siloed specialists into strategic risk advisors. Adjusters, processors, and support teams alike can lean into technology to work smarter and faster. Specifically, emerging technology's greatest benefit is the ability to break down communication barriers across departments, enabling real-time collaboration and accelerating the claims lifecycle.
For example, consider 360 documentation tools. With documentation technology, insurance professionals can more quickly review and understand necessary data to help the claims cycle move forward more efficiently. They don't just speed up settlements, they create a lasting visual source of truth for all parties. With these tools, insurance professionals can use the data to unlock more long-term benefits for sustainable growth, ensuring insurance policies are able to be maintained and profit can increase. Running a profitable insurance company requires leaning into technology that supports the long-term health of a business through correct payouts, faster timelines, and more accurate estimates.
But tech alone can't act as a Band-Aid solution. The real value lies in the ability to understand how to harness data and technology that can transform insurance roles from reactive claims handling to proactive risk management, positioning insurance organizations to thrive.
Can you share more about how emerging tech is impacting talent and retention to the industry?
Emerging technologies, such as 360 documentation and AI-powered claims solutions, are changing what it means to enter the insurance workforce, especially in claims-related roles. We're seeing more AI and automation infused into tech tools and solutions to streamline workflows, reduce back and forth with contractors and policyholders, and lessen administrative burdens. The end result is more time in the day to focus on settling more claims and boosting revenue, or opting for more work-life balance.
For the next generation of independent adjusters, this is crucial for talent acquisition and retention. Up and coming talent values autonomy, efficiency, and the ability to choose when and how they work, and technology provides them with these opportunities.
Creating an environment where individuals can scale their workload, income, and work-life balance not only makes the insurance industry more attractive to young talent, but it builds the foundation for modernizing insurance operations at large.
How can technology help with knowledge transfer as people within the industry retire?
The average age of insurance adjusters hovers around
Beyond streamlining workflows and allowing insurance organizations to scale, technology also captures records of best practices, how claims are processed and settled, and provides a blueprint for future generations to learn from. Organizations can leverage these visual sources of truth through 360 documentation and use them to create training resources, quality assurance references, and knowledge-sharing materials.
We're also seeing technology transform the adjuster role, with more time spent at a desk vs. out in the field, reducing reliance on individual adjusters sharing their tribal knowledge based on their field interactions with contractors. In the past, adjusters would spend hours in the field working hand-in-hand with contractors and gaining knowledge as a result, but as the adjuster role shifts to a desk-based role, the opportunity for industry knowledge-sharing decreases as well. Additionally, as more experts retire, 360 documentation technology helps create a paper trail of the insurance life cycle for future reference and ensures these best practices don't leave with them, but rather serve as a bridge between generations to strengthen the entire industry.
Can you share your perspective on governance and bias testing related to AI and tech?
Emerging technologies like AI are no longer a future consideration, they're already here. AI is increasingly making its way into more emerging technologies and being used across multiple industries. Because of that, we're seeing a lot of state and federal regulation surfacing to help govern how AI captures personal consumer data. As these regulations develop, insurance professionals cannot afford to sit on the sidelines. It's not enough to follow developments, they need to take part in actively shaping it.
For example, California Assembly Bill 75 (CA Bill 75) introduces new requirements for carriers using aerial imagery in underwriting, requiring an annual notice to policyholders if an aerial image may be taken or obtained of their property. If coverage is canceled, nonrenewed, or reduced based on this imagery, it cannot be older than 180 days . The policyholder must have the opportunity to dispute or remedy any issues before changes take effect.
Legislation like CA Bill 75 is only the beginning. As more states begin to regulate AI use in underwriting and claims, similar rules will follow. As an example, insurance professionals must stress test generative AI with this in mind, as it often relies on assumptions when generating outputs, but for the insurance world, these assumptions must be grounded in fact.
Additionally, bias testing is crucial to responsible AI use and is not a one-and-done task, especially in the insurance industry where decisions directly impact finances. Given the technology is still prone to error and hallucinations, insurance professionals must audit outputs across race, gender, age, and other factors to ensure AI systems are tested for fairness and equity across the AI lifecycle - from development through deployment and continuous monitoring. With more states introducing legislation on fairness and transparency in AI, bias testing will shift from a consideration to a regulatory necessity. Insurers who adopt best practices and validate models early on will shape standards and build trust with all parties involved.
Insurance leaders have an opportunity to get in on the ground floor, shaping policies that protect policyholders while also enabling innovation. Through rigorous evaluation and shared insights between regulators and the insurance industry, there is a unique opportunity to ensure AI works for everyone - from carriers to regulators to policyholders.
Any action items you recommend for chief strategy officers or people within organizations deploying technology?
My biggest piece of advice for leaders deploying emerging technology is to embrace it responsibly rather than shy away from its use. For smaller insurance organizations specifically, technology provides the opportunity to take advantage of the current market and remain competitive with larger carriers. Investing in technology is an inexpensive strategy for small organizations to remain viable in the industry long term.
Beyond embracing technology, I recommend anyone deploying new solutions compare and contrast with current solutions in a testing environment for 90 days. For example, insurance carriers can determine if a new tool is applicable by underwriting both with and without the technology for 90 days in a controlled environment, tracking how each approach holds up when stress tested. At the conclusion of this period, organizations are left with both a future record for how they approach emerging technologies and the accuracy of leveraging it within the insurance lifecycle.
