Transforming insurance claims: insights from Ian Thompson, Strategic Advisor and Former Zurich Insurance Executive

The insurance industry is at a pivotal moment, grappling with legacy systems, evolving customer expectations, and the rise of artificial intelligence (AI). In a recent episode of Unstructured Unlocked, insurance veteran Ian Thompson shared his expertise, reflecting on the challenges and opportunities in claims management. Thompson’s 30-year career, including global leadership roles at Zurich Insurance, positions him as a unique voice on how technology is reshaping the industry.

Listen to the full podcast here: Unstructured Unlocked season 2, episode 15 with Ian Thompson, Global Insurance and Claims Expert.

The evolution of claims management: Not a linear journey

Claims management has not followed a straightforward path of improvement, as Thompson explained on the podcast. Instead, progress has been marked by significant leaps forward and persistent obstacles. “I think of claims as like, you know, when you see those athletes training and they’ve got a parachute behind them,” he noted. “…There’s a lot of desire amongst claims leadership to evolve the model, but there are things that are holding companies… and teams back from actually making the changes they want to make.”

One of the most substantial challenges is the dual burden of legacy systems and limited capital prioritization for claims innovation. Thompson observed that some insurers opt to replatform and innovate from that new platform, while others build agile interfaces over legacy systems to avoid costly overhauls. Both strategies aim to modernize claims workflows, but they require substantial investment and cultural shifts.

The customer and talent-driven push for innovation

Ian Thompson pinpointed two powerful forces reshaping claims management: rising customer expectations and evolving workforce demands. Today’s customers, whether commercial or retail, expect speed, clarity, and convenience. They want their insurance interactions to be effortless, with timely updates and decisions delivered seamlessly. Thompson captured this sentiment succinctly, stating that both “commercial clients as well as retail customers” are saying, “I don’t want to be my own project manager.” The action step here is for insurers to reduce complexity wherever possible and make processes more intuitive.

On the talent front, the challenges are equally stark. A new generation of employees, familiar with streamlined, user-friendly technology in their personal lives, encounters outdated systems at work—an immediate source of frustration. These technological gaps can deter top talent from joining or staying in the industry. “You’ve got to attract people in and you’ve actually got to have them interfacing in a way which they feel comfortable with,” Thompson noted, “otherwise they’re going to walk.” This highlights a broader need for insurers to modernize not only customer-facing tools but also internal systems to retain skilled professionals.

By addressing these dual pressures, insurers have an opportunity to elevate their operations and reputation. Meeting customer demands for instant decisions and empathetic service while empowering a tech-savvy workforce is no longer optional—it’s essential for remaining competitive in an evolving industry.

Related content: Enhancing data quality and compliance in the insurance industry with Louis DiModugno of Verisk

Breaking down silos: The path to seamless workflows

Legacy systems and fragmented organizational structures remain significant obstacles in the quest for efficiency in insurance workflows. Disjointed processes often create bottlenecks, with operational, technical, and regulatory teams working in silos rather than as a cohesive unit. This fragmentation hinders comprehensive digital transformation efforts. Wilde underscored the issue, highlighting a lack of project management in the industry: “I often don’t see someone who sits down and says, ‘I’m going to own that claims adjuster experience and drive transformation.’ Instead, there seems to be more kind of siloed, well, I own this piece, I own this piece, I own this piece. And there isn’t… the ringing out of the internal digital transformation.”

The solution lies in a unified, end-to-end approach to claims workflows. This involves mapping out the entire process, identifying inefficiencies, and fostering cross-departmental collaboration. When teams come together to address operational hurdles collectively, it enables a clearer focus on the claims adjuster and customer experiences. Thompson’s advice was clear: “Start from where you want to be and work backwards.” This approach shifts the focus from patching existing processes to designing workflows that anticipate and accommodate future demands.

To achieve these goals, insurers must prioritize technology integration, cultural alignment, and long-term strategy. Comprehensive claims transformation doesn’t just resolve inefficiencies; it creates a framework for adaptability, ensuring workflows remain effective as the industry evolves.

Addressing global complexities: Regulation and customer behavior

In a globalized insurance market, navigating diverse regulatory environments and customer expectations is a constant challenge. Compliance requirements vary widely by region, often dictating how insurers must structure workflows. Europe’s General Data Protection Regulation (GDPR), for instance, imposes strict guidelines on the handling of customer data, even when processed outside the EU. Thompson remarked on the far-reaching implications, saying, “…Outside of the US, one of the biggest pieces of data regulation is within the European Union, the GDPR. This is one of the key differences that you’ll see if you’re not used to operating in the European Union, [the focus] around data of European Union citizens, wherever it is handled. And that is something that people get quite surprised about.” He continued: “Whereas my sense in the US is that it’s still very much a kind of a state-by-state approach and the level to which that is applied consistently varies quite a bit. And there’s sort of pros and cons there.”

Customer behavior is equally varied across regions, influencing how claims workflows are constructed. For example, in emerging markets like Turkey, where smartphones dominate as the primary mode of interaction, insurers must optimize workflows for mobile platforms. “Customer behavior and market maturity play a significant role in shaping how claims workflows are constructed,” Thompson said, emphasizing the importance of regional adaptation. This might involve designing apps with localized interfaces or prioritizing different communication channels based on market preferences.

Insurers that embrace these regional nuances are better positioned to meet both regulatory and customer demands. By tailoring workflows to reflect the realities of specific markets, they can enhance efficiency and build stronger, more trusting relationships with their global customer base.

Building stronger connections between claims and underwriting

One of the podcast’s most compelling discussions centered on the integration of claims and underwriting data. Thompson underscored that claims departments hold a veritable “diamond mine of information,” but much of this data remains locked in unstructured formats or siloed systems. By leveraging AI to extract and analyze claims data, insurers can enhance underwriting risk management, improve pricing strategies, and strengthen their overall business health.

The potential benefits extend beyond internal operations. Thompson pointed out that sharing fraud-related data across insurers creates more robust fraud detection systems than any single carrier could achieve alone. These collaborative efforts, combined with AI-driven insights, position insurers to better serve customers and mitigate risks.

Related content: The power of submission clearance software in modern insurance workflows

Redefining customer interaction: Balancing automation and empathy

The introduction of AI and chatbots into claims management has revolutionized initial customer interactions. These tools streamline routine tasks, reduce wait times, and offer customers more control over their claims. However, Thompson cautioned against over-reliance on automation. “There’s emotion attached to an insurance claim, which means ultimately somebody’s going to want to talk to… somebody. So you can’t start by saying, ‘We’ll cut out all human interaction,’” he explained.

The key lies in balance. AI can efficiently handle data collection, initial triage, and straightforward inquiries, freeing claims handlers to focus on complex or sensitive issues. For example, self-service tools can allow customers to upload documents or track claim statuses on their own, but more personal touchpoints remain essential for resolving disputes or navigating significant losses.

Reducing the administrative burden on claims handlers has another benefit: it allows them to provide higher-quality, empathetic service. By using AI to streamline repetitive tasks, insurers can create a more human-centric experience at critical moments. This dual approach ensures that automation enhances the customer experience without sacrificing the emotional connection that often defines excellent service.

Unlocking the future of claims management

The podcast made it clear that the future of claims management lies at the intersection of technology, strategy, and customer-centricity. AI-powered solutions, combined with thoughtful process design and cultural transformation, offer insurers the tools to navigate an increasingly complex landscape.

Indico, a leader in unstructured data solutions, plays a crucial role in this transformation. By enabling insurers to extract actionable insights from unstructured claims data, Indico empowers organizations to enhance decisioning, streamline workflows, and deliver better outcomes for customers and stakeholders alike.

To learn more and keep up with the latest trends in AI, data, and insurance, make sure to subscribe to the Unstructured Unlocked podcast on your favorite platforms, including:

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Frequently asked questions

• How do legacy systems and cultural resistance specifically hinder the adoption of modern claims management technology? While the blog touches on the dual burden of legacy systems and limited capital prioritization, it does not delve into specific ways these factors hinder adoption. Legacy systems often lack the flexibility to integrate new tools, making modernization efforts costly and complex. Cultural resistance also arises as employees accustomed to traditional workflows may resist adopting unfamiliar technologies, fearing job displacement or an increased learning curve.
• What practical steps can insurers take to bridge the gap between claims and underwriting data? The blog highlights the potential of AI and the importance of integrating claims and underwriting data but doesn’t provide actionable strategies. Insurers can start by implementing advanced data analytics platforms capable of structuring and analyzing unstructured claims data. Establishing cross-departmental teams focused on collaboration and data sharing can also foster better alignment. Additionally, insurers could invest in shared industry databases for fraud detection to encourage collaborative innovation.
• How should insurers address regional differences in customer behavior and regulatory compliance without overcomplicating operations? The blog mentions the need for localized workflows but lacks guidance on balancing complexity and efficiency. Insurers can address this by adopting modular platforms that allow customization for regional requirements while maintaining a unified operational backbone. This approach ensures adaptability to different regulations and customer preferences while avoiding the inefficiency of multiple independent systems. Training local teams to understand and implement tailored strategies can further enhance operational effectiveness.