The insurance industry is undergoing significant transformation, with rapid growth fuelled by technological advancements and heightened claim volumes.
Gordon Vater, Managing Director – Loss Adjusting & Consulting Solutions at Gallagher Bassett, shares his insights into how insurers can navigate these changes.
“The increasing complexity of claims and demand for personalised services have rendered traditional ways of processing claims inefficient. Insurers must meet evolved customer expectations while adhering to new regulatory demands for fairness and consumer duty.”
Leveraging Data Analytics and Generative AI for Claims
The race to adopt digital solutions for claims, risk management, and customer service is set to increase significantly. Data-driven insights are now standard factors of modern operations, whereby insurers can proactively prepare preventive measures and claimant communications by leveraging advanced data analytics. These tools are designed to reduce the frequency and severity of claims as real-time data from telematics and other sources improve accuracy.
“Data analytics, utilising statistical models and machine learning, enables data-driven decision-making, optimising every aspect of the insurance value chain. Generative AI, a significant focus in the sector, has brought new opportunities as well as challenges for insurers,” said Gordon.
“While Generative AI brings many exciting opportunities, there are also associated risks and regulatory obligations to ensure appropriate application of these tools. Gallagher Bassett is committed to selectively adopting Generative AI with careful consideration to ensure the best outcomes for our clients and customers.”
Balancing Technology with Human Skills
Tactless adoption of Generative AI can undermine the sense of trust and empathy a brand has built. Insurers can overcome the challenges of Generative AI by seeking to integrate this new technology with human connection. AI should enhance personal connections, not replace them, by balancing speed of claims processing and personalisation of customer interactions.
According to Gallagher Bassett’s 2025 Claims Insights Whitepaper, 98% of UK respondents see the reduction of operational costs as the greatest value-add of adopting Generative AI. 80% of surveyed UK insurers are already using the technology to automate routine tasks. 47% have taken the next step and are currently utilising it for claims resolution.
Gordon outlines how Gallagher Bassett is striking this balance to deliver greater outcomes for clients in this new era of claims management.
“With a growing demand for personalised, expert service backed by the right technology, Gallagher Bassett has prioritised empowering our talented claims adjusters with the tools they need to succeed. Such practices allow our teams to address client needs with a comprehensive, personal approach while maintaining the highest standards of service.”
“The key to maintaining high claimant and client satisfaction is simple: do what you say you are going to do, consistently. This requires an environment of curiosity, continuous improvement, and a motivated team of experts who understand the client and deliver on their promises. While technology, AI and Machine Learning, are here to stay, the most significant factor is having the right people, motivations, and tools to fulfil our commitments.”
Read our free 2025 Claims Insights Whitepaper now to gain an inside on track on the trends shaping the insurance industry.
