Oxbow Partners say AI’s biggest prize in claims lies beyond automation

Artificial intelligence (AI) could significantly reshape claims handlers’ roles as insurers automate administrative tasks and devote more human expertise to complex decision-making, according to Oxbow Partners. 

In its The Future of AI in Claims report, released yesterday (5 November 2026), the consultancy predicted that handlers could eventually spend between 60% and 70% of their time on adjudication and decision-making, compared with 40% to 60% currently.

Meanwhile, time spent on first notification of loss (FNOL) and triage could fall from between 25% to 45% currently to between 10% and 20%, as AI increasingly structures information, assesses complexity and supports claims decisions.

The report argued that AI’s biggest opportunity in claims went beyond processing work faster, with the technology potentially allowing insurers to turn claims data into intelligence that informs underwriting, pricing and risk selection.

Miqdaad Versi, partner at Oxbow Partners and author of the report, said: “Claims teams sit on some of the richest data in insurance, yet most of it has never been properly used.

“The real opportunity with AI isn’t just handling claims faster – it’s learning from every claim and feeding that insight back into underwriting and pricing.”

Human judgement

However, Oxbow Partners said human judgement would remain important, particularly when insurers face complex or novel claims with limited historical data.

It added that claims professionals would increasingly need data-led skills alongside traditional legal, technical and operational expertise.

The consultancy also warned that AI could not compensate for poor underlying data, with carriers needing claims information that is consistently captured, structured and connected across the business.

Versi said strong data foundations would therefore be crucial to insurers looking to capitalise on AI.

“That only works with strong data foundations and a strategy that reflects each carrier’s business,” Versi added.

”The insurers that get this right won’t just run cheaper claims functions – they will make better risk decisions.”