Category Archives: Claims & AI

Why the Future Is Now – AI’s Inescapable Role in Modern Claims Management

Posted on by
Reply

What was once hypothetical is now inevitable. AI is actively transforming claims processing, fraud detection, triage, customer engagement, and much more. For forward-thinking claims organizations, the challenge is no longer whether to adopt AI, but how to do it quickly, responsibly, and at scale.

The property and casualty (P&C) insurance industry is no stranger to change. From paperless processing to mobile FNOL and predictive analytics, we’ve seen waves of innovation reshape how we work. But today’s transformation is different. Artificial Intelligence (AI) isn’t just another tool—it’s a seismic shift in how claims are managed.

The Industry Is Moving—Fast

According to a 2024 survey by the Ethical AI in Insurance Consortium (EAIC), only 14% of P&C insurers are currently leveraging AI for operational decisions. However, 66% plan to integrate AI into their operations this year, indicating a significant shift towards AI adoption in the industry. Risk & Insurance

A 2025 survey by Roots Automation reflects this momentum, revealing that nearly 90% of insurance executives express a positive opinion about employing AI, with 67% “strongly in favor” of adopting it in claims. This growing C-suite confidence is propelling the industry forward at an unprecedented pace. roots.ai

Proven Results from Early Adopters

Early adopters of AI in the insurance sector are already witnessing tangible benefits:

  • Sedgwick: Implemented generative AI to expedite claims processes, aiming to reduce resolution times and enhance overall efficiency. Sedgwick
  • CURE Insurance: Leveraged Cloverleaf Analytics’ platform to enhance claims risk assessment and fraud detection, leading to more efficient claims processing. Cloverleaf Analytics
  • Gallagher Re: Reported that 63.4% of global InsurTech funding in Q3 2024 was allocated to AI-focused solutions, underscoring the industry’s investment in AI technologies. Gallagher

These examples highlight the practical applications and measurable outcomes of AI integration in insurance operations.

It’s More Than Efficiency—It’s Survival

AI isn’t just about reducing workloads or automating tasks. It’s a response to evolving customer expectations, increasing claim complexity, and growing pressure on loss adjustment expenses. And the longer organizations delay adoption, the wider the gap grows between early movers and everyone else.

  • Competitors are settling claims faster.
  • Customers expect real-time updates and transparent processes.
  • Regulators are starting to ask hard questions about bias, privacy, and governance.

The time for tentative pilot programs is ending. This is a leadership moment.

Want to explore what successful AI adoption looks like? Request a copy of our full white paper for detailed case studies, benchmarks, and implementation strategies. https://lanzko.com/contact

4 AI Myths Holding Claims Teams Back

Posted on by
Reply

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.