Insurers rethink claims with straight-through processing

Why it matters

Insurers are automating simple claims from first notice of loss to payment, while routing complex or suspicious cases to specialists. The aim is faster settlement for customers and more adjuster time for the claims that need judgement.

Straight-through processing changes the economics of claims handling when the data captured at first notice of loss is complete and reliable. Insurers that redesign the customer journey first tend to automate more than those that add automation to an existing process.

What's changing

• Digital first notice of loss, photo assessment and document extraction reduce manual data entry.
• Fraud-detection models increasingly decide which claims can be paid automatically.
• Regulators expect fair outcomes and clear explanations when automated decisions affect customers.

How leaders are responding

• Starting with high-volume, lower-severity lines such as glass, travel and small property claims.
• Setting clear thresholds for automatic payment and reviewing them as fraud patterns change.
• Measuring customer effort and complaint rates alongside cycle time.

What good looks like

• Straight-through processing for simple, low-value claims with clear thresholds
• Fraud and quality checks that run on every automated decision
• Customers told when automation decides and how to reach a person

What to watch

• Use of generative AI to summarise claim files and correspondence.
• Regulatory expectations on explaining automated outcomes.
• Partnerships with repair networks and data providers that speed settlement.

Where to start