By: 24 April 2024

Research of UK and US insurers reveals document processing, compliance and reporting are causes of claims handler stress, but technology can transform this

95% of claims handlers are embracing technology

Leading insurtech Sprout.ai has released findings from its survey of UK and US insurance claims handlers, revealing 95% of claims handlers are confident technology will significantly impact claims processing in the next five years. The report reveals that—contrary to common fears about AI and automation displacing human workers—claims handlers see technology as an opportunity to improve processes, both for themselves and their customers.

The research uncovers the most tedious elements of the claims processing role across the US and UK: 55% of respondents struggle with reviewing and processing claims documents and evidence, and the same number are unhappy with compliance and reporting.

The findings also provide an insight into what customers want, from the perspective of those who are dealing with customers day in and day out, the claims handlers. Of them, 28% say they receive complaints about delays or lack of communication, 20% say they experience requests for more transparency in the claims process, and 17% say they receive suggestions for faster processing.

Roi Amir, chief executive officer of Sprout.ai, said: “Claims handlers are responsible for the most important moment for an insurance carrier: delivering on their service promise. They know the claims process inside and out, and they’re deeply invested in making it easier for customers as well as themselves, as pressure can be high at these critical moments. The report confirms what we already knew: handlers are becoming increasingly frustrated by challenges around delays and customer communication—and they are now seeing technology as the answer.

“This is a really promising development for the insurance industry: technology has the potential to turbocharge claims processing. For instance, using AI can take a typical claims process from 30 days to real time and free up handlers’ time to deliver more personalised and empathetic customer communication.”

The research also reveals a divide between UK and US claims handlers’ experiences. Well over twice as many UK claims handlers are struggling to retrieve and review claims documents and evidence, in comparison to their US counterparts (36% vs. 14%). These findings demonstrate the urgent need for UK insurers to transform document management systems or fall behind on the global insurance stage.

The research was conducted in March-April 2024 in collaboration with Opinium. Download the full report here.

Sprout.ai aren’t the only insurtech betting on AI: last year pet insurers Waggel partnered with Vet-AI.

Image: Sprout.AI

Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.