In an industry built on trust, how we manage and move money matters. Claims payments are one of the most visible moments of truth for insurers, and yet, despite years of transformation on the front end, the back-end infrastructure that supports these payments is still lagging behind.
In a recent report based on a survey of over 200 senior insurance professionals in claims, finance and treasury across the U.S. and U.K. the findings confirmed what many of us have felt anecdotally. The flow of funds in claims is fragmented, reactive, and too often dependent on manual workarounds. If we want to deliver a faster, more reliable claims experience, we need to transform how money moves across the insurance ecosystem.
Process complexity is still a drag on speed
Let's start with the basics. Nearly 80% of respondents said internal process complexity is a key barrier to faster claims payments. That's not surprising when you consider how disconnected many teams still are. Claims, finance, and treasury functions often operate on separate systems, with limited visibility into each other's workflows. The result of this is payment decisions stalling, reconciliation taking days, and capital getting locked up in overfunded or underutilized accounts.
Even when claims are approved quickly, the execution of payments is often slow with limited flexibility for claimants whose expectations for speed and ease are rising. All this while regulatory pressure is mounting, which is not a sustainable model.
Liquidity bottlenecks are real
Two-thirds (66%) of respondents said accessing readily available funds remains a challenge —a concern that rises to three-quarters (74%) in the U.S., underscoring broader structural hurdles. Many insurers still rely on decentralized funding structures that weren't designed for real-time operations. Cash calls, batch funding, and legacy approval flows might have worked in a slower environment, but they're not built for modern claims.
It is also clear that finance and treasury teams don't always have a clear view into delegated claims funds. Only a third (32%) of finance leaders said they have visibility into these balances, which is a clear blind spot. A blind spot that creates risk, limits agility, and makes it harder to manage capital effectively.
External coordination adds another layer of friction
Beyond internal challenges, over three-quarters (78%) of insurers pointed to delays driven by third-party involvement, whether from brokers, TPAs, or banking partners. These external actors are critical parts of the value chain, but when systems don't talk to each other and data isn't shared in real-time, handoffs become hurdles.
In the U.S. especially, regulatory expectations around payment timeliness and auditability are becoming more stringent. Without better integration between insurers and their partners, it's difficult to meet those standards with confidence.
A shift toward financial infrastructure
The good news is that many insurers aren't standing still. We're seeing a clear shift away from patchwork fixes and toward strategic investment in financial infrastructure. That means building platforms that connect finance, claims, and treasury in real time. It means embedding liquidity controls, improving payment oversight, and creating a shared source of truth across teams.
This is especially important in a distributed claims model, where multiple parties, systems, and geographies are involved. Without a unified approach, it's incredibly difficult to manage disbursements at scale.
What comes next
Faster payments are a matter of trust as much as speed. It's about showing customers we can act with urgency and accuracy when it matters most. It's also about giving insurers the tools to manage capital, reduce exposure, and stay compliant in a more complex market.
We're at a tipping point. Insurers that invest in modernizing how funds are held, moved, and monitored will be the ones best positioned to lead in this next chapter. Not only because they can pay faster, but because they'll have the visibility and control to make smarter, more resilient decisions across the business.
