Artificial intelligence (AI) is set to have a profound impact on claims handling, according to Michael Cook, partner at PwC UK, who spoke during the firm’s Global Insurance Run-Off Survey and Insights on the Legacy Market briefing at RVS 2025 in Monte Carlo.
Despite advances in modern platforms, automation, and improved data, claims handling remains largely manual and resource-intensive, PwC noted. This continues to put pressure on claims teams, particularly when faced with emerging claim types and increasingly complex cases.
Cook underscored the tension between continuity and change in the claims arena. He stressed that claims have always been the foundation of the insurance sector, historically serving as the “bedrock” for unlocking value in transactions.
That foundation, however, is beginning to shift. Some recent deals have excluded claims capabilities altogether, while diversification across the sector is driving demand for fresh expertise within claims functions.
“There’s a huge amount of activity that takes place outside of any system. We have to read lawyer reports, medical reports, or loss adjuster reports, for example. So, there’s a huge amount of stuff that does not take place on the system,” said Cook.
Noting: “What we are starting to see and what we’re doing ourselves with our own claims business, is we are using artificial intelligence to read those documents. Now, it’s just an example, but when you start to think about how much of that manual effort we can take out, we can actually replace a lot of that time and give it a better use.”
The executive clarified that this is not about replacing staff, but about freeing up their time for more strategic tasks. “I’m not advocating that we should then be exiting that capacity. I’m advocating that we should be using that capacity in better ways,” he said.
By automating manual effort, companies can make better use of employees’ expertise to handle more complex cases, gain better insights and drive overall efficiency.
Cook underscored that AI and other technologies can make the entire claims process more effective from front to back.
He also highlighted that implementing AI requires a clear strategy focused on value creation, emphasising that businesses should align their AI initiatives with opportunities that will yield the greatest return on investment, as such technology is not cheap.
“You want to align those cases to unlocking that value. Because that’s where you get the biggest return on your investment. And let’s be clear, investing in any technology or data or AI is not cheap. It’s not inexpensive to run, and therefore that return on investment is really important,” Cook stated.
Concluding: “So, thinking about the tactical and strategic value of doing those things is really important and it’s only by following this type of logic that you can develop your kind of AI strategy or your technology strategy.
“This absolutely has to be something that’s front and centre of businesses. No different than your acquisition strategy, your people strategy.”
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