Artificial intelligence now dominates many conversations in the world of claims management. But carriers don’t need more AI, they need the right AI claims solutions implemented with flexibility and intentionality. The discussion must shift from how much AI a carrier can add to how smartly it is utilized. This is the new frontier of configurable claims technology, where the best outcomes result from striking the right AI balance, not from piling on additional features.
What Is AI Overload and Underload?
AI overload in insurance claims happens when too many features are activated, often without a clear strategy, which can cause workflow inefficiencies and user frustration as the tools meant to streamline work end up overcomplicating it. There is also a separate mental AI overload to consider, as carrier employees need to constantly remember everything that is running, where it is running, and maintain the domain knowledge to track and manage it all.
AI underload is what occurs when available capabilities go unused, leading to missed opportunities to reduce cycle times and improve efficiencies. The tools exist, but either they are not activated or they are underutilized. And if carriers are not optimizing the existing AI claims solutions they have, are they thinking in AI terms? They may not be leveraging existing features because they don’t know about them, which means they also don’t know about other tools that could prove revolutionary.
More AI does not equal better AI. The right approach is purpose-built AI insurance claims processing features that are configured and activated to meet strategic goals.
One Size Doesn’t Fit All
Small, regional carriers and large multinationals have vastly different digital needs, claims operations, resources, and strategies. The use of AI may vary across workflows, even within the same carrier, as what works for subrogation may not work for first notice of loss (FNOL) or fraud red flag detection.
The real value lies in configurability, meaning the ability to turn on what a carrier needs and turn off what it does not. With the flexibility to make fast decisions, each carrier can configure its claims management system to best meet its customers' needs. Configurability also means transparency. It is about knowing what is in the black box, and knowing how AI works gives carriers a strategic advantage as they maximize its capabilities.
With modular, flexible claims management platforms, carriers can automate parts of the workflow and activate features like fraud analytics, FNOL triage, and document modules. This ability to configure, test, and iterate in real time means the business needs can dictate technology investment, rather than the other way around, and the right digital claims management platform enables this optimization.
To maximize key features and tap into unrealized potential, carriers can utilize these strategies to drive smart configuration:
- Conduct a feature audit to understand which features are active.
- Develop the right workflow from idea to prompt creation to testing.
- Measure the impact of features.
- Train teams intentionally on relevant modules instead of every possible feature.
- Optimize first, then expand.
Carriers should keep the future in mind as they develop AI tools. Building AI claims solutions that stack on each other increases the speed of delivery over time. This may mean taking on very foundational problems first to move faster in the future.
Smart Configuration is the Future
AI will continue to evolve, but carriers must resist the temptation to chase every new idea. Carriers do not need more technology, they need smarter insurance claims management solutions. The best claims management platforms aren’t necessarily the most powerful, they’re the most flexible.
By investing in claims management tools that are flexible, configurable, and strategically deployed, insurers can build an AI strategy that strikes the right balance, avoiding the pitfalls of overload and underload. The result is a smarter, more adaptive approach to automation that delivers better outcomes across every stage of the claims journey.
