As Australian insurers increase their use of generative artificial intelligence (AI) in claims handling, industry leaders are calling for a measured approach that maintains the role of skilled claims professionals in decision-making processes.
A new whitepaper from Gallagher Bassett (GB), “Carrier Perspective: 2025 Claims Insights,” revealed that nearly nine in 10 insurers in Australia have adopted generative AI in some part of their claims operations, a 38 percentage point jump from the previous year.
While digital tools are being implemented to enhance areas such as claims intake, fraud detection, and client communications, insurers continue to emphasise that automation is not a full replacement for human judgment.
John White (pictured), head of sales and client services – general insurance at GB, said the increased uptake of AI aligns with insurers’ goals to streamline claims processes and reduce operational delays.
“More organisations are adopting generative AI to enhance the claims lifecycle, including at intake, triage, fraud detection, and customer communication. The results of our 2025 Claims Insights whitepaper showed 88% of Australian insurers now use gen AI in claims resolution – an increase of 38 percentage points compared to last year,” he said.
The whitepaper also found that 64% of Australian insurers identified improved decision-making through data analytics as a primary benefit of AI use. Additionally, predictive technologies are being used to combat fraudulent claims, with 62% of local insurers applying AI tools in this area – compared to 58% globally.
Brandon Nutall, chief digital and AI officer at Xceedance, echoed similar views regarding the use of GenAI in insurance. He pointed to the global underinsurance problem – where only about 6% of assets are insured – as a challenge AI could help address.
“GenAI – as part of a data strategy – has the potential to supercharge the insurance industry,” he said.
He added that improvements in data handling and processing are making such shifts more achievable.
“The industry has been hamstrung by a lack of standardised data – GenAI can enable us to rapidly process and standardise data to create more commoditised products to improve accessibility and drive industry growth,” Nutall said.
White noted that while automation increases productivity, long-term success depends on pairing these tools with the knowledge and experience of claims professionals.
“We believe a forward-looking strategy that embraces innovation while developing human potential can help us deliver lasting value in an increasingly dynamic industry,” he said. “Underwriters bring a level of contextual awareness that AI currently may not be able to replicate, interpreting nuanced information and understanding the broader context behind data points.”
