Why Insurance Claims Adjusters Have Mixed Feelings About AI

Of all the professions discussing artificial intelligence (AI), insurance claims adjusters stand out as the most vocally critical. According to recent research by Glassdoor, a staggering 98% of reviews mentioning AI from claims adjusters are negative. Many express frustration over the pressure to adopt AI technologies that often lead to confusion and increased workload.

Adjusters frequently report being overwhelmed by “error-prone” AI systems that misclassify claims, leading to many cases needing to be rerouted. For instance, Ahmad Jackson, a former claims department employee, noted how the implementation of AI for initial loss reporting resulted in considerable errors and miscommunication with claimants. After experiencing AI-induced chaos, he left his job, asserting that AI was simply adding to the burden of adjusters who were already dealing with complex claims.

Geoffrey Conrad, another claims executive, mentions “AI fatigue,” highlighting concerns about the relentless push for AI integration in their work. Glassdoor’s senior economist, Chris Martin, noted the unexpected intensity of this backlash, revealing a significant reckoning within the profession.

Coming amidst expectations from the Bureau of Labor Statistics that the number of claims adjusters will drop by about 5% in the coming decade, the fears of job replacement due to AI are palpable. Job opportunities for entry-level adjusters have plummeted by approximately 50% since 2025. The rise of AI startups promising to revolutionize insurance—like Liberate and Pace—has exacerbated the anxiety among adjusters.

AI in insurance is being pushed to handle routine tasks, from processing claims through chatbots to analyzing damages through photos. Companies like Lemonade have relied heavily on automation, processing a significant portion of claims through AI. Yet, many adjusters worry that they are training their own replacements.

While some claim adjusters recognize the utility of AI for administrative tasks, the skepticism remains. Mistakes can stem from minor document errors, resulting in wrongful payouts. As Sandy Avina, a claims adjuster turned consultant, explains, the outputs of AI often lack reliability, causing frustration when claims are mishandled.

Conrad, who has firsthand experience with insurance claims from a severe loss of his home twenty-five years ago, stresses the importance of empathy in the profession—a quality he feels machines cannot replicate. He warns against relying solely on AI in claims processing, advocating for a balance where technology supports rather than replaces human adjusters. This sentiment resonates across the industry, as adjusters continue to voice their concerns about the future of their profession in the wake of AI advancements.

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