Viewpoint: Fixing the Claims Experience Where It Matters Most – In the Mess

Before becoming a parent, I thought I could plan for everything. There are books, blogs and apps galore. My prediction was that I could stay ahead of the chaos if I studied, prepared enough and followed the proper steps.

Then my son was born.

On day one, the script fell apart. He was fussy. He was colicky. Nothing went according to the timelines in the books. There were no cause-and-effect patterns, just long nights, gut instincts and trial and error. Instead of a playbook, parenthood resembled improv.

Insurance customers, especially after a catastrophic event, are much the same. They’re overwhelmed, confused and emotionally raw. You can’t script your way through their experience. You can’t automate empathy. You have to show up, adapt and be present.

Yet too many systems in the claims world are built like parenting guides: excellent in theory, but useless in a meltdown. There are lessons to be learned from the mess.

Efficiency Over Empathy

Recent data underscores a troubling trend in the industry. J.D. Power’s U.S. Property Claims Satisfaction Study from 2024 revealed that customer satisfaction with homeowners insurance claims plummeted to a seven-year low.

The primary culprits were delays and inadequate communication, particularly during Cat claims. Findings from this year’s study revealed a continued rise in severe weather events, longer claim cycle times and the same level of service provided (with higher insurance premiums, no less). It’s as if the carriers adopted a “less is more” approach—reminiscent of the airline industry.

While carriers have invested heavily in digital tools to streamline claims processing, these advancements haven’t always translated into a better customer experience. For instance, the 2024 U.S. Claims Digital Experience Study found that while digital claims reporting outperforms phone-based communication in customer satisfaction, a significant gap remains in timely responses to emails and texts. Only 39% of customers reported that insurers always responded promptly, highlighting a disconnect between technological capability and human connection. Another telling discovery in the report: Humans still want “humans” to resolve their claims.

Technology Serves the Carrier First

Many auto insurers have implemented AI-based photo estimation tools for vehicle damage assessments. While these tools help adjusters work faster, customers often receive inaccurate estimates, which lead to disputes and repair delays. Therefore, longer cycle times lead to decreased satisfaction and increased friction (all despite a significant investment from the carrier). When technology is misaligned with customer needs, it doesn’t drive satisfaction; it drives customers away.

What Insureds Expect, and What They Get

Policyholders today are brighter and more service-savvy than ever. They’re used to the speed and convenience of online retailers, rideshare apps and same-day delivery. So, when they file a homeowners insurance claim (often for the first time), they expect that level of responsiveness. Instead, they’re met with vague timelines, voicemail tag or worse. Think about hearing an out-of-office message that your assigned adjuster is on vacation while you and your family are cooped up in a budget motel, wondering when a check for your fire-damaged property will arrive.

The lesson that must be learned is that modern consumers bring modern expectations. Whether those expectations are reasonable is beside the point. Other industries have shaped them. And now the insurance claims industry needs to catch up.

Enhancing Service with Tech and Touch

Balancing technological efficiency with empathetic interaction is the key to enhancing the insurance claims experience. While AI and digital tools can expedite processes and reduce costs, they should never eliminate the human touch that customers value most.

Just like the cruise control in your vehicle is a convenient option, no one relies on it during a traffic jam. It’s the human driver (adaptable and empathetic) who navigates the chaos. The same must apply to the claims experience.

Technology should enhance service, not replace it. When disaster strikes, customers don’t need just speed; they need clarity, compassion, and control. It’s time to stop designing systems for highways and start designing them for real-world roads.

Allstate discovered that AI-generated emails were often more empathetic and less jargony than those written by human reps. While promising, it’s only part of the equation. AI should support, not supplant. Human oversight ensures that communication remains thoughtful, timely, and tuned to emotions.

Excellent service is proactive, personal, and consistent. It means anticipating questions before they’re asked, offering real-time updates without being prompted, and making customers feel seen, not processed.

Clear and transparent communication is equally vital. Claims processes are confusing for most policyholders. Providing regular updates and straightforward explanations like “Here’s what’s happening, and I’m here to guide you” goes a long way in building trust and reducing anxiety.

Design for Chaos, Not the Classroom

Being a parent hasn’t taught me to control chaos; it has taught me to show up better in it. And that’s the lesson the insurance industry needs to learn.

We can’t just design systems for perfect scenarios and ideal customers. We must build for the mess—for the fear and exhaustion. We need real humans to steer when the wheels fall off.

My son doesn’t need a perfectly color-coded schedule, he needs me to pick him up when he’s tired and crying. Policyholders don’t just need a sleek portal, they need someone who shows up, explains and cares.

If we want to deliver an enhanced claims experience, it’s time we stopped pretending things will go smoothly. Let’s meet our customers in the mess. And build from there.

Casaleggio is regional director, claims, disputes and forensics at the Vertex Companies.

Topics Claims