The Insurance Claims Workforce Crisis: Can AI Bridge the Talent Gap?
The insurance industry is bracing for a workforce crisis. Over the next 15 years, 50% of claims professionals are set to retire, leaving more than 400,000 positions unfilled, according to a June 2021 U.S. Chamber of Commerce report.
And there’s another major issue: millennials and Gen Z are largely uninterested in insurance careers—with fewer than 25% of the current workforce under the age of 35. This has led to what the Chamber of Commerce calls a “talent crisis.”
This hiring gap is particularly concerning for claims organizations, where experienced professionals are essential for managing reserves, assessing risk, and preventing costly mistakes. As seasoned adjusters retire, a new generation must step up—but will they?
Why Younger Talent is Avoiding Insurance
The insurance industry, struggling with an outdated and negative image, is finding it difficult to attract younger talent. This is particularly concerning for claims organizations, where a shrinking, less experienced workforce combined with increased caseloads and higher customer service demands could lead to missed opportunities and challenges in adhering to best practices.
Ultimately, the industry faces a branding problem. Many younger professionals perceive insurance as outdated and slow to embrace innovation, making it an unattractive career path. Without fresh talent, claims teams will be stretched thin, handling more cases with less experience and fewer resources.
A shrinking workforce also brings financial and operational risks:
- Reserves set reactively rather than proactively, leading to surprise loss developments.
- Missed sleeper claims—cases that seem minor but escalate into severe losses.
- Inadequate investigation and a failure to identify high-severity claims.
- Delays in adjudication that create inefficiencies and financial setbacks.
Without action, this talent gap could lead to rising claim costs, operational inefficiencies, and increased risk exposure.
How CLARA’s AI-Powered Solutions Help Fill the Talent Gap
To address this talent crisis, claim organizations should leverage claims AI and data insights. Rather than replacing adjusters, AI empowers them—automating routine tasks, surfacing key insights, and ensuring claims professionals can make faster, more informed decisions.
Platforms like CLARAty.ai can help by providing a comprehensive view of claims, assisting with reserve management, and identifying sleeper claims. By using AI to guide adjusters, organizations can mitigate the impact of the talent shortage and reduce the likelihood of unexpected reserve issues.
CLARA’s holistic claims solutions will not only help attract younger talent but will assist in efficient claims handling. These solutions eliminate administrative tasks and focus claims professionals’ time and energy on effective claims management and critical thinking.
Here’s how CLARA’s suite of solutions supports an early career claims professional:
- Triage ensures that claims are assigned appropriately, and reserves are set accurately from the outset. It helps in the timely identification of potential nuclear verdicts, and alerts claims professionals about high-risk cases, which is essential for managing financial exposure.
- Litigation assists in effective panel management by helping select the best legal counsel and providing insights into plaintiff firms. This improves the strategic handling of cases.
- Claims DocIntelPro efficiently summarizes large volumes of data, particularly when dealing with policy limits or time-limited demands. It allows claims professionals and risk managers to focus on critical decision-making rather than data management.
- Fraud actively tracks and alerts companies to potential fraudulent claims. By identifying and addressing fraud early, it helps prevent costly losses.
Augmented Intelligence: The Future of Claims Handling
The insurance industry can’t afford to wait for a new generation of seasoned adjusters; AI can bridge the experience gap today. By automating administrative tasks, providing real-time insights, and improving decision-making, CLARA’s solutions allow newer adjusters to handle cases with confidence, accuracy, and efficiency.
Want to see how CLARAty.ai can help your claims team thrive in a changing workforce? Let’s talk.
