Re-Claim Your Time: How AI is Making Claims Adjusting Faster and More Fulfilling

The Chaos of Handling Insurance Claims in the Past

When I look back, my early days as an adjuster were filled with green screens and overflowing file cabinets. It was 2006 and claims adjusting was a labyrinth of inefficiency. We worked across multiple disconnected systems—some digital, some paper-based, none of them truly integrated. 

There was no uniformity. Each supervisor had their own way of handling claims, writing reports, and documenting their files. A claim that passed through multiple adjusters over a few years was an indecipherable mess, scattered across different formats and handwritten notes. Trying to get up to speed on a claim was like trying to read a novel written by five different authors in five different dialects.

And the paperwork? Endless. Reports, policy details, emails, and communications had to be manually compiled and stored in ways that were neither efficient nor easily accessible. At times it felt like adjusters like me spent more time chasing down documents than actually resolving claims.

These challenges weren’t unique to my organization—they were the reality across the entire insurance industry. Every carrier, regardless of size, faced the same technological limitations, struggling to equip adjusters with tools that could truly streamline claims handling.

The Burden of Mundane Tasks in Claims Handling

Beyond the inefficiencies, our day-to-day work was weighed down by monotonous, manual tasks. Writing reports alone was a time sink. We had to type out every detail ourselves—or worse, dictate reports onto mini-cassette tapes, which were then sent to a transcription department.

Even when claims management systems started to become digitized, they didn’t solve these issues. Reporting was still a disjointed process with formatting issues and rigid templates that made simple edits a nightmare.

The First Step: Digitizing the Claim Process 

In the late 2000’s our industry took a step toward modernization with the introduction of Electronic Claim File (ECF) systems. Like many insurers at the time, my organization invested in tools like ECF to improve processes for us, their employees. It was a major shift—finally, claims information was stored in a centralized digital location. This system brought some much-needed improvements:

• Policy information and limits were readily available.
• Reporting became more structured and standardized.
• Some processes, like document storage, became easier to manage.
• The system allowed for digital First Notice of Loss (FNOL) entry, but it still required manual data input.

Although an improvement, there were still many drawbacks. Despite the fact that organizations did what they could, claims technology simply hadn’t caught up to the needs of adjusters.

The new letter-generation tool, for example, was practically unusable. Templates were so rigid that even a minor edit would send the formatting spiraling into chaos.

We were still in limbo—straddling outdated legacy systems while trying to work with new ones that weren’t fully optimized. The transition took nearly a decade, and even then, adjusters were left dealing with inefficiencies.

Sad to say, but the inefficiencies of the past and the pains of claims adjusters I’m describing are still the present reality of many adjusters and insurance companies today, in 2025. 

AI in Claims Management: Saving Time and Energy 

In recent years, the landscape has changed dramatically. During my recent time as a claims leader, I was introduced to AI in claims management (by Five Sigma, an innovator in the field, and back then a vendor of mine), and it quickly became clear that this technology wasn’t just another incremental improvement—It was a paradigm shift. AI has fundamentally reshaped how adjusters interact with claims, moving from reactive, manual processes to proactive, automated decision-making.

Instead of spending hours tracking down claim details or manually compiling reports, adjusters are now empowered to focus on people, decisions, and service—the work that truly matters.

Here’s how AI and automation have transformed claims management and the adjuster’s experience:

Consistency and Clarity in Claims Handling

One of the biggest challenges in claims was always data inconsistency. Every adjuster had their own way of documenting claims, which led to gaps in information and inefficiencies when claims were reassigned. Claims management systems that leverage AI standardized data collection and documentation, reducing inconsistencies.

By standardizing claim records, these systems ensure every adjuster works with the same clear, organized data, regardless of who handled the file before. With this consistency, handoffs become seamless, and adjusters no longer waste time deciphering incomplete notes or conflicting reports. Instead, they can quickly access the information they need and focus on moving claims forward.

Proactive, Data-based Insights

AI has shifted claims handling from a reactive process to a proactive one. Instead of relying on adjusters to sift through files and determine next steps, modern claims management systems analyze claims in real-time, flagging missing information before it causes delays. 

By referencing historical data, they suggest next actions based on similar claims, helping adjusters make faster, more informed decisions. These systems can identify potential roadblocks early and guide adjusters through settlements, reserve calculations, and vendor selections, ensuring a smoother, more efficient claims process.

Time Savings and Instant Claim Summaries

One of the biggest pain points for adjusters had always been getting up to speed on a claim. What once took 15-45 minutes—flipping through notes, reading emails, checking payment history—now takes a few minutes with AI.

AI-generated summaries give adjusters an instant, clear overview of a claim, eliminating the need to sift through endless documents. By extracting and presenting only the most relevant details, AI ensures that adjusters can quickly understand the claim’s status and take action without wasting valuable time.

Reducing Burnout, Increasing Productivity

In the past, a backlog of over 200 claims felt overwhelming, leaving adjusters drowning in their workload. Today, AI and automation help adjusters handle more claims in less time by streamlining processes and reducing manual effort. Routine tasks are automated, allowing adjusters to focus on higher-value activities that require expertise and judgment. 

Optimized workflows eliminate unnecessary steps, minimizing wasted time and inefficiencies. With AI taking over repetitive tasks and reducing workload stress, adjusters have more time and energy for meaningful interactions, leading to more positive and engaged conversations with policyholders.