Skip to main content
Welcome to Deloitte

If we have selected the wrong experience for you, please change it above.

A poor claims experience can drive customers away

How can insurers use AI to help?

A Deloitte analysis of 4,000 customers reveals that the claims experience is a key driver of retention, yet many policyholders still face frustrating delays and fragmented processes. Combining AI automation with human empathy allows insurers to streamline complex workflows, reduce friction, and protect customer trust. 

AI for Insurance Claims: Reduce Friction, Retain Customers

Insurance customers may shop around based on price, but the claims experience can determine whether they stay. A bad experience pushes many policyholders to rethink their provider. To learn more about what drives those reactions and how insurers can reduce friction in the claims journey, Deloitte analyzed about 4,000 property-and-casualty insurance customer responses collected by data and insights company HundredX.

The findings: Many policyholders still experience complex, fragmented and unclear claims processes even after large investments by insurers in platforms and digital tools. This creates an opportunity for insurers to use AI more effectively to improve speed, clarity, and consistency across the claims journey. By investing in modern claims platforms, data infrastructure, and advanced analytics, insurers can equip claims professionals with technology that enhances high-stakes human interactions, builds trust, retains clients, and supports growth.

What drives positive customer sentiment and future purchase intent during the claims experience? 

Analyzing nearly 4,000 responses across 12 P&C insurers, we assessed eight variables (Figure 1). We found the claims process heavily influences future purchases yet ranks lowest in positive sentiment, signaling a major opportunity for insurers to boost loyalty.

The top four drivers of positive sentiment all center on human interaction: customer support, knowledge, communication, and attitude. Customers strongly value empathetic and knowledgeable representatives who provide clear, consistent guidance across all channels throughout their recovery.

Customer responses further indicated that Insurers' apps and websites currently have the lowest influence on future purchases compared to other drivers, suggesting digital platforms alone are not yet major loyalty drivers. Yet, this reveals an opportunity: by making digital channels more intuitive and responsive, insurers can transform them into meaningful loyalty tools.

Despite heavy digital investments, many customers still face a disconnected experience. Poor channel orchestration often forces customers to switch between multiple channels to resolve a single query—something 22% of auto or home insurance customers still do, according to J.D. Power data. Furthermore, while satisfaction peaks with mobile app updates, only a minority receive them that way, with most still relying on emails, calls, or texts.

Ultimately, sentiment weakens when customers encounter slow processing, unclear status updates, repetitive requests, or settlement delays. A seamless claims process remains a crucial priority for insurers wanting to avoid frustration and secure customer loyalty.

5 ways insurers can use AI to improve the claims experience and boost customer loyalty  

Artificial intelligence can help insurers anticipate needs, facilitate resolution options, reduce friction through seamless communications across channels, support human approvals, and equip adjusters with relevant insights to support decision-making and speed up resolution. To maximize the benefits of investing in AI for claims experiences, insurers can:  

Don’t just use AI to solve individual pain points. Instead, use it to replace or augment processes such as first notice of loss, mitigation services, and service-provider integration (towing or water mitigation, for example), improving speed, availability, transparency, and communication at the most critical moments of the claim. In some cases, insurers can even intervene early on, incorporating connected devices into the mix: Nationwide, for example, offers free or discounted water leak and fire detection devices to help customers mitigate risk before loss occurs.

Automate intake including integration with auto or smart-home component manufacturers to trigger claims, collect documents, route cases based on skills and capacity, provide status updates, process payments, and coordinate repairs. Where appropriate, AI can also generate insights to help claims professionals complete tasks faster, enabling them to focus on the highest-value work: interacting with customers and making faster, more accurate decisions.   

In previous research, Deloitte interviewed chief claims officers of leading property and casualty insurers and found that human soft skills like empathy and conflict management remain critical in managing complex claims, yet many adjusters struggle to develop or retain these skills. The findings further underscored the need for insurers to continue investing in immersive and personalized skill development, which can be enabled through AI-powered sentiment analysis training and simulations. Additionally, insurers can equip claims professionals with real-time insights to help them handle complex, high-stakes interactions.

Zurich Insurance Group’s Voice IQ, for example, acts as a support layer to call-center teams, surfacing real-time guidance and tailored recommendations based on analysis of thousands of customer calls. At Sabadell Seguros, Zurich’s joint venture in Spain, the tool has increased customer retention by 20%.

Digital tools should guide customers to the right channels and include context across apps, web, text, phone agents, adjusters, or repair partners. For example, Allstate’s Good Hands Repair Network connects homeowners with approved contractors and uses direct billing and real-time updates to shorten the repair cycle and reduce back-and-forth. At the same time, when human engagement is most likely to deliver the best outcome and strengthen the customer relationship, it should be prioritized, over digital alternatives

Measure customer experience indicators such as trust, communication quality, channel continuity, future purchase intent, and net promoter scores. Add these metrics to the evaluation criteria for claims professionals and technology solutions alongside cycle time and loss adjustment expense impact, which are typically used to judge claims handling. 

Digital transformation can improve customer sentiment when it makes the claims journey faster, more transparent, and reassuring in moments of uncertainty. Insurers that strike the right balance between AI-enabled improvements and human judgment can reduce costs and cycle time, while also handling claims in a way that builds trust and retains customers. 

Did you find this useful?

Thanks for your feedback