Imagine walking into your favorite neighborhood café. The barista greets you by name, asks about your family, and knows your regular order. Now, picture that experience replaced by a touchscreen and a robotic server. Efficient? Sure. But personal? Not even close.

That’s the dilemma facing today’s insurance industry. automated claims processing are transforming how claims are handled—faster processing, fewer errors, lower costs. But there’s a real risk: losing the human connection that customers count on during some of life’s toughest moments. The challenge isn’t choosing between tech and people—it’s figuring out how to make them work together.

Big Tech Investments, But Satisfaction Is Falling

Insurers have spent more than $8 billion on digital tools designed to streamline claims. Yet customer satisfaction with the claims experience is dropping. According to J.D. Power, it's now at its lowest point in seven years.

That tells us something important: speed and automation aren’t enough. When someone files a claim, they’re often dealing with stress, loss, or uncertainty. In those moments, what matters most is how they’re treated—not just how fast the system moves.

Claims Are Still the Biggest Expense

Claims remain the largest cost for property and casualty insurers, accounting for roughly 70% of premiums collected. That puts enormous pressure on companies to find efficiencies wherever they can. But cutting costs doesn’t mean cutting care. In fact, smarter claims handling is about doing more—with both technology and people.

The Real Cost of Bad Data

Even with advanced AI, the foundation of every decision is still data. And bad data leads to bad outcomes. According to MIT Sloan, poor data quality can cost companies between 15% and 25% of their revenue. For a $10 billion insurer, that’s up to $2.5 billion lost annually.

Mistakes caused by inaccurate information—whether in underwriting, pricing, or claims handling—can damage both financial performance and customer trust. Technology needs reliable data to work well, and so do people.

Customers Are Paying Attention to Claims

Claims service isn’t just something people think about after they buy a policy—it’s part of the decision to buy in the first place. A Deloitte survey found that 44% of U.S. consumers research an insurer’s automated claims processing before making a purchase.

A company’s reputation for handling claims well—or poorly—can be a major competitive advantage. Customers are looking for speed, yes, but also for fairness, responsiveness, and empathy.

Claims Roles Are Changing—Not Disappearing

Automation is taking over many repetitive tasks, like collecting documents or automated claims processing simple claims. But that doesn’t mean claims professionals are being replaced. It means their roles are evolving.

Instead of spending time on routine paperwork, they’re focusing on complex cases, fraud detection, policy insights, and helping customers through high-stress situations. They’re becoming strategic partners, not just processors. Technology clears the path—humans lead the way.

Where People Make All the Difference

Here are just a few places where the human touch still matters most:

• Injury Claims at Aviva: Aviva uses a blended approach, letting automation handle basic steps while personal injury cases are routed to real people. These claims require sensitivity, communication, and care that a bot can’t deliver.

• High-Value Clients at Criterion: Criterion, a Charles Taylor company, specializes in managing complex claims for high-net-worth individuals. Their approach focuses not just on technical accuracy but on responsive, relationship-driven service.

• Preventing Legal Escalation: Attorney Patrick J. Sodoro explains that when adjusters don’t connect with claimants, misunderstandings increase—and so do lawsuits. A quick phone call can often prevent a costly legal battle.

Automation Is a Tool—Not a Replacement

Technology is here to stay, and for good reason. It makes claims faster, more consistent, and more accurate. But even the best AI can’t show compassion. It can’t listen with empathy. And it can’t build trust.

As one insurance executive put it: “Yes, automation saves time. But when something goes wrong, people still want to talk to people.” After a natural disaster or major loss, customers don’t just need answers—they need reassurance.

The Bottom Line

AI and automation are changing insurance. But they should enhance—not erase—the human side of claims.

The best claims experience is one where technology handles the routine, and people step in for the moments that matter most. It’s not a question of man versus machine—it’s about making both work together to create faster, smarter, and more compassionate service.

Because at the end of the day, customers may forget how fast their claim was processed—but they’ll never forget how they were treated.