While price remains an important criterion when choosing an insurance policy, it is claims experience that decisively influences whether a customer stays with their insurer or not, according to the Deloitte study A poor claims experience can drive customers away. How can insurers use AI to help?. Insurers that manage to combine the efficiency of artificial intelligence (AI) with human judgment and empathy can reduce operational costs and claims resolution time while strengthening customer trust and loyalty, the study shows.

Although the claims process ranks low in driving positive customer sentiment compared to other aspects of the customer-insurer relationship, it has an above-average influence on the future purchase decision, which indicates an important opportunity for increased loyalty by improving the claims experience. According to the study, the factors that contribute the most to the positive perception of customers towards the insurance company are customer support, the level of knowledge of the representatives, the quality of communication and their attitude.

Customers value knowledgeable and empathetic claims representatives who ensure clear and consistent communication across all interaction channels, from phone and email to digital platforms, providing them with support throughout the claims process, according to the study. In contrast, the claims process is often perceived as complex, fragmented and insufficiently transparent, despite the industry’s investments in digitalization and automation.

The Deloitte study indicated that insurers’ apps and websites have the lowest influence on the future purchase decision compared to the other factors analyzed, suggesting that these platforms, on their own, are not yet a major factor in retention. However, this conclusion also highlights an important opportunity: by transforming digital channels into more intuitive, user-friendly and responsive tools, insurers can convert them into a relevant mechanism for building customer loyalty.

“In addition to rising customer expectations, insurers must also respond to an ever-evolving regulatory environment, characterized by increased requirements on consumer protection, data governance, operational resilience and the responsible use of artificial intelligence. In this context, investments in technologies that increase the transparency, traceability and efficiency across the claims process can support both compliance with new regulatory requirements and improvements in customer experience,” said Claudiu Ghiurluc, Audit and Assurance Partner, Deloitte Romania.

The study shows that many customers continue to face cumbersome processes, extended resolution times, a lack of clear updates on the status of cases, repeated requests for documents, and difficulties in using multiple channels to resolve the same issue. Artificial intelligence, however, can help insurers better anticipate customer needs, facilitate resolution options, reduce friction across communication channels, support decision-making, and accelerate claims resolution, thereby helping to increase customer retention and loyalty.

“In the insurance industry, the claims experience is basically the moment when the customer puts the policy to the test, and the speed of response, the transparency of the process and the quality of communication directly influence the level of trust and customer loyalty. For the Romanian market, where insurance penetration remains below the European average, transforming the claims experience can represent one of the most important opportunities for differentiation and sustainable growth,” said Ana Șerban, Actuarial and Insurance Solutions Director, Deloitte Romania.

Digital transformation can significantly improve customer sentiment when it contributes to a faster, more transparent and predictable claims process. To make the most of AI in claims management, the Deloitte study recommends five key actions.

First, insurers should prioritize the highest-friction processes for customers, such as first notice of loss, mitigation services, and service-provider integration, using AI to improve speed, availability, transparency and quality of communication at the most important moments of the claims process.

Second, AI can streamline behind-the-scenes decision-making by automating document collection, file distribution, claim status updates, payment processing, and coordination of repairs, allowing claims professionals to focus on high-value-added activities.

At the same time, the study highlights that humans must remain at the center of high-emotion moments, and AI should be used to support the development of communication and empathy skills, as well as to provide recommendations and relevant information in real time to teams managing complex claims cases.

Another recommendation aims to guide customers to the most appropriate communication channel and ensure continuity of experience between mobile applications, online platforms, call centers, claims adjusters and repair partners, so that the interaction is simpler and more fluid.

It is also recommended to expand the metrics used to assess the performance of the claims process by including criteria such as trust level, quality of communication, continuity of experience across channels, future purchase intent and customer retention, alongside traditional performance indicators related to costs and duration of claims settlement.

The Deloitte study is based on nearly 4,000 customer ratings in the property & casualty sector, collected for 12 U.S. insurance companies, and examines the factors that influence consumer sentiment and their intention to continue the relationship with the insurer.