The insurance industry continues to grapple with the twin pressures of claims inflation and natural catastrophes. While premium increases have helped offset some of these challenges, the 2025 outlook suggests further strain. According to a recent forecast from the Swiss Re Institute, U.S. insurers are expected to underperform return-on-equity measures due to the resurgence of reserve gaps in lines impacted by social inflation and a slowdown in premium growth amid broader economic headwinds.
Executive Summary
In this article, Sollers Consulting's Brian Moore, drawing from examples of his firm's work with several insurers, advocates a step-by-step approach to tackle claims automation—breaking processes into microprocesses and orchestrating them with workflow automation tools.Customers Expect Claims to Move Faster
Hurricanes Milton and Helene last year left an impact that extended well beyond financial losses. In several states, the insurance industry faced criticism over its claims-handling practices. Insurers continue to struggle with delivering an effective response following large loss events. Surveys consistently show that customers prioritize fast claims resolution, often valuing speed even more than the compensation amount itself. Yet, insurers frequently can fall short of customer expectations.
