In our line of work, myths can be more dangerous than mistakes. They slow progress, fuel hesitation, and prevent claims teams from embracing tools that could make their lives easier and their outcomes stronger. Nowhere is that more true than with Artificial Intelligence. Despite proven use cases and mounting industry adoption, AI in claims still faces serious skepticism. Let’s set the record straight—one myth at a time.
Myth #1: “AI will replace adjusters.”
This is probably the most common fear—and the most misguided.
The truth? AI isn’t coming for your job. It’s coming for your busywork. Think copy-paste, form-fill, and sorting PDFs. Not human judgment, empathy, or strategy.
Reality check: 77% of insurers are already using or testing AI, and not one reported cutting adjuster headcount in Conning’s 2024 survey (Risk & Insurance). Even Lemonade—famous for its two-second claim bot—relies on human adjusters for disputes and negotiations (Insurance Times).
Let’s be clear: AI handles the mundane so adjusters can focus on what matters—coverage decisions, customer experience, and settlement strategy.
Myth #2: “Only the big carriers can afford AI.”
Ten years ago? Maybe. But today’s AI is plug-and-play, not build-from-scratch.
Thanks to cloud-based APIs and usage-based pricing, even mid-size and regional carriers are embracing AI—and seeing results fast.
Proof point: 65% of carriers (large and mid-market alike) are already piloting large language models in claims ops (Risk & Insurance). One federal benefits agency processed over 115,000 claims in just three months using Hyperscience, achieving 96% accuracy—without a core system overhaul.
Start with one pain point. Pay for only what you use. Scale when you see the ROI. That’s how smart transformation begins.
Myth #3: “Regulators won’t allow AI—it’s too risky.”
This one stems from a misunderstanding of the compliance landscape.
In fact, the National Association of Insurance Commissioners (NAIC) adopted an AI Model Bulletin in 2023. It doesn’t ban AI—it outlines how to use it safely and transparently.
The bulletin calls for:
- Transparent data use
- Explainable models
- On-demand audit trails
So compliance isn’t a roadblock—it’s your roadmap. Choose vendors who log every decision and make model logic understandable, and you’ll satisfy both regulators and your internal risk team.
Myth #4: “AI means a multi-year core-system overhaul.”
Not anymore.
Modern AI is designed to coexist with your current tech stack. Low-code tools, REST APIs, and orchestrators like n8n can have you up and running in weeks—not years.
Take this real example: Hyperscience plugged directly into an existing mailroom workflow, hit 99% automation, and saved $45 million annually—with no core upgrade required.
So keep your legacy system. Let AI do the grunt work around it. Innovation doesn’t have to mean disruption.
Don’t Let Myths Block Your Momentum
It’s time to stop seeing AI as a threat and start seeing it for what it is: a force multiplier. When used correctly, AI makes claims professionals more efficient, more focused, and more impactful.
Curious where AI fits in your claims shop? DM me or grab 15 minutes on my calendar. Let’s separate fact from fiction and find your first best use case.