How AI Is Improving Insurance Performance—and Why Oversight Still Matters

Artificial intelligence is becoming a practical operating tool across insurance. Carriers, third-party administrators (TPAs) and other claims organizations are using it to review submissions, summarize claim files, support customer service, identify claims requiring attention and detect duplicate payments.

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AI can process large volumes of information, reduce the time required for routine tasks and help insurance professionals focus on work requiring greater judgment. Publicly reported examples point to shorter processing times, increased review capacity, faster assignments and earlier intervention.

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But speed is not the same as accuracy, and an alert is not the same as a sound claim decision. Independent expertise is still needed to determine whether the documentation is complete, a reserve is adequate, a litigation strategy is appropriate or a reported performance improvement is producing better outcomes.

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Key Takeaways

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• AI is improving workflow performance. The most established applications involve intake, summarization, document review, customer service, claim triage and payment controls.
• Operational gains do not automatically produce better claim outcomes. Faster processing has value only when the work remains accurate and leads to appropriate decisions, escalation and follow-through.
• Independent oversight remains necessary. Experienced review can test whether AI-supported workflows are improving claim outcomes, controlling costs and strengthening performance without weakening professional judgment.

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Where AI Is Improving Insurance Workflows

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Current applications are concentrated in high-volume activities involving repeated steps, large amounts of information or identifiable patterns. The following examples are drawn from public industry disclosures.

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Company names have been omitted from the table to keep the focus on how the technology is being used rather than on individual organizations.

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Examples of How AI Is Improving Insurance Workflows

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Why AI-Supported Performance Still Requires Oversight

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Faster processing does not necessarily produce better claim or financial outcomes. A claim summary may omit a material fact, a duplicate-payment alert still requires validation, and a risk score cannot determine the appropriate reserve, settlement or litigation strategy.

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AI creates greater value when it expands professional capacity, supports earlier action and reduces administrative expense. The key question is whether AI-supported work is accurate, properly reviewed and producing better claim and operational outcomes.

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How Alan Gray Can Help

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AI can improve the speed and reach of insurance reviews, but experienced judgment is still needed to interpret complex claim facts and evaluate reserve, litigation and payment decisions.

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Alan Gray can provide an independent layer of review to determine whether AI-supported processes are accurate, properly controlled and producing measurable results through the following services:

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• Claim-file and process reviews: Determine whether AI-generated summaries and recommendations are supported by the underlying documentation and lead to appropriate action.
• TPA and vendor oversight: Evaluate service levels, exception handling, performance reporting and reported technology benefits.
• Litigation and legal-spend analysis: Assess whether technology-supported processes are controlling legal costs, supporting claim strategy and identifying leakage.
• Performance validation: Establish baselines and determine whether faster processing increases capacity, reduces costs and improves claim outcomes.

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AI can accelerate insurance work. Independent review helps determine whether the results are accurate, properly controlled and improving claim outcomes.

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Citations

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1. American International Group, Inc. 2025 Annual Report. AIG, 2026.
2. The Allstate Corporation. Third Quarter 2025 Earnings Call Presentation. Allstate, 2025.
3. Aviva. "Aviva Extends Industry-First AI Underwriting Tool to Critical Illness Cover." 18 Mar. 2026; Aviva. Annual Report and Accounts 2025. 2026.
4. Sedgwick. "Sedgwick Enters Next Phase of AI Technology Development to Transform the Claims Industry." 2 May 2024.
5. Enlyte. "GenexEngage." 2026.
6. CorVel Corporation. Elevating Bill Review to Fight Fraud, Waste, and Abuse. 2025.
7. Crawford & Company. Tariffs and Claims Inflation. 2025.
8. State Farm. "Our Next Gen Good Neighbor Customer Experience." 12 May 2026; "State Farm Advances AI Vision Through Collaboration with OpenAI." 5 Feb. 2026.

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