“Local presence” will be more important than ever as insurers invest in AI, according to a white paper from claims manager Crawford & Company.

The paper examines how insurers can use tech to improve claims handling while preserving the trust and personal support customers expect after a loss.

Drawing on industry research and insights from Australian claims professionals, Crawford says AI is already being deployed across claims triage, research, administration and customer communications, allowing adjusters to spend more time on complex decisions and customer support.

However, technology cannot replace the value of local knowledge, particularly in a geographically diverse country and during major catastrophes.

Crawford says insurers should regard a distributed physical claims network as a strategic capability rather than an operational expense.

“The future of insurance isn’t a choice between technology and people,” Crawford Australia president Jonathan Hubbard said.

“Technology can help us work faster and more efficiently, but when someone has suffered a loss, local knowledge, human connection and professional judgment still matter.”

Crawford says AI should be viewed as a tool that enhances human capability, rather than replaces it, automating routine administrative tasks and allowing claims professionals to focus on empathy, judgement and complex problem-solving.

The paper is titled The Human Algorithm: Why Empathy, AI and Local Presence Will Define the Future of Insurance.