How Claims Innovation Is Redefining the Customer Experience

• November 12, 2025

By David J. Lovely

In today’s world, speed is everything. Whether it’s shopping online, booking a ride or streaming a movie, people expect fast, seamless experiences—and insurance is no exception. In fact, when it comes to insurance claims, speed alone isn’t enough. Many customers are experiencing a claim or a loss for the first time, which makes the situation especially uncertain and stressful. In these moments, what they value most is service that is fast, thoughtful and human.

For independent insurance agents, this raises an important question: Are your carrier partners evolving to meet your customers’ expectations?

The strongest carriers today are those that blend innovation with empathy, leveraging technology to streamline the claims process while putting customers at the center of every interaction.

Here are four pillars of exceptional claims service that your carriers should offer:

1) A direct, human connection. One of the most impactful shifts in claims service is the move toward direct service models. Instead of routing customers through call centers or multiple touchpoints, some carriers are assigning a single, dedicated adjuster to manage a claim from start to finish. This one-on-one approach eliminates delays, reduces confusion and creates a more personal experience for customers.

And that personal connection matters. Twenty percent of customers say they would consider switching insurance carriers if their agent or adviser left, according to a McKinsey & Company survey. This is a powerful reminder of how much trust is built through direct relationships.

For agents, this means fewer escalations and a smoother service experience for clients, especially in critical moments when empathy and clarity are essential.

2) Digital tools that actually make things easier. Technology should make the claims process faster, easier and more claimant-friendly, not more complicated. With most claims requiring a damage estimate, speed and accuracy are key. That’s why leading carriers are investing in digital appraisal tools that allow customers to submit photos or videos of damage directly from their phones.

In auto claims, this streamlines the process by enabling faster estimates and earlier identification of total losses, reducing the cycle time by up to a week and enhancing the customer experience.

In property claims, interactive inspections and live video collaboration are helping adjusters gather key claim information promptly, reducing back-and-forth communication and accelerating resolution.

These tools don’t replace the adjuster or the empathy and human connection they bring to the process. They empower them to work more efficiently and focus on what matters most: the customer.

3) Smarter, simpler document exchange. Document handling has long been a pain point in the claims journey. But that’s changing, as forward-thinking carriers are now offering secure, user-friendly platforms for customers to upload and access documents, including large files. This not only keeps customers informed but also reduces the manual work for adjusters, improving accuracy and accelerating the entire claims process.

New document exchange systems can help reduce low-value manual tasks, enhance case management and free up adjusters’ time for more meaningful customer interactions. For agents, this means fewer delays, fewer follow-ups and a more transparent experience for clients.

4) Innovation that keeps evolving. The best carriers aren’t standing still. They’re piloting artificial intelligence (AI) tools to support adjusters in reviewing contracts, automating parts of the first notice of loss process and exploring new digital payment options like direct deposit, Zelle and virtual cards.

These innovations aren’t about replacing people but about giving claims professionals the tools they need to deliver faster, more thoughtful service. And they’re not just good for customers—they’re good for business. In fact, the McKinsey survey also found that customer experience (CX) leaders outperformed their peers in total shareholder return by 65 percentage points in the property & casualty space from 2017-2022.

What Claims Innovation Means for Independent Insurance Agents

Agents’ reputations are closely tied to the claims experience their clients receive. That’s why many agents place such a premium on carriers who are investing in the right kind of innovation, by designing solutions that reduce friction, improve communication and keep people at the heart of the process.

Here are some key questions agents can ask when evaluating a carrier:

• Do they offer direct access to adjusters?
• Are they using digital tools to help speed up resolution?
• Are they making it easier for customers to stay informed?
• Are they continuously evolving to meet rising customer expectations?

And while digital tools are vital, the human element remains irreplaceable. McKinsey also reported that more than 70% of customers prefer in-person interaction for complex journeys like resolving a claim, underscoring the importance of empathy and expertise in moments that matter.

The best carriers in the industry understand this balance. They don’t innovate for the sake of technology, but for the people they serve: customers, agents and employees. In high-stakes moments, it’s not just about how fast they move, but about how they make people feel along the way.

David J. Lovely is executive vice president and chief claims officer at The Hanover.