For some time, people have accepted an unfortunate reality: insurance property claims take a long time to resolve. This experience has been even more apparent after catastrophic events as insurers wade through large volumes of claims.
But 2025 may be the year that narrative begins to shift.
Drones can fly over impacted areas after storms end and begin surveying damage immediately. Virtual adjusting solutions enable insureds to start documenting damage. Gen AI solutions help adjusters make decisions faster by pulling in information from the claim file and comparing it to historical loss information and state regulations.
With strategic use of technology, insurers can change the perception of property claims from slow and cumbersome to fast and easy, delivering payments to insureds in a timely manner.
Here are four trends for 2025 that highlight how technology will improve property claims processes for carriers and customers.
1. Virtual claims handling will become the norm. Technologies used to assess properties such as virtual measuring and virtual capturing tools are becoming more sophisticated and more accurate. The resolution of photos is better. Drone and plane flyovers provide clearer pictures than satellites could deliver. As these tools advance, adjusters will no longer have to physically visit a property for a large number of claims. The adjuster can sit behind a desk,
2. Homeowners lean into virtual adjusting tools. Consumers are embracing the ability to take pictures and conduct property assessments that can be used by insurers. Not only do insureds understand that this technology will get their claims handled more quickly, but they become an active part of the process, rather than waiting on adjusters. Tools are designed to be easy to follow with step-by-step instructions giving homeowners confidence in documenting damage.
3. AI advances the role of adjusters. AI-powered claims technology won't replace adjusters but will help to shift their roles. AI requires humans for insight as well as assessment of output to ensure that the results are accurate and unbiased. The use of technology in claims will also enable adjusters to do what they were intended to do — advocate for the customer. No longer manually having to pour through files and physically visit every property, they can work to ensure the customer is being represented correctly. Adjusters will be a support for insureds, making sure the claims decision is accurate and that the insurance is paying out the correct amount.
4. Carriers won't be limited by legacy systems. While claims technologies are readily available, insurance organizations have been slow to adopt because they operate on legacy systems. This infrastructure does not adapt well to new technologies. But providers are giving carriers a workaround such as online portals, so they can incorporate solutions into their processes without having to reprogram existing systems.
Creating a roadmap to capitalize on trends
Insurers can create a roadmap to digitize claims by taking holistic views and considering the places where tools will have the most benefit. It's important to think about the end goals. Straight-through-processing for claims under $2,500 could be an example of an insurer's end game. Once the insurer determines a realistic goal, it's important to identify not only the actions required to meet that goal, but also the technologies that can support the actions. It's particularly important to consider the impact on the customer, including how they will adopt new processes.
Once the goal is set, and the insurer has incorporated the technologies and processes needed to achieve it, they should then test out the new workflow with a small group of the book of business. See how it functions. Get feedback from customers. After evaluating, the insurer can then determine if it can be rolled out more broadly or if they need to go back to the drawing board and tweak some processes or consider other technologies.
As we move into 2025, the longstanding narrative of slow claims resolution is poised to change. Emerging technologies not only promise faster processing and payments but also redefine the roles of adjuster. By leveraging these trends and implementing a practical roadmap, carriers can lead the charge toward better — more efficient — claims.
