NEW YORK — Insurance carriers are deploying artificial intelligence and automation throughout the claims process in 2026, from first notice of loss through damage assessment and settlement — improving speed and efficiency in some cases but also raising concerns about accuracy, fairness, and the displacement of human judgment.
AI-powered damage assessment tools use satellite imagery, aerial photography, and machine learning algorithms to assess property damage after catastrophic events. These tools can process thousands of claims simultaneously, enabling carriers to triage and prioritize claims much faster than traditional field inspection processes.
Several carriers have deployed AI-powered claims chatbots that can guide policyholders through the first notice of loss process, collect initial claim information, and provide real-time status updates. These tools reduce the administrative burden on claims staff and improve the policyholder experience for straightforward claims.
However, AI-powered claims tools have also generated controversy. Several studies have found that AI damage assessment tools can underestimate damage in certain types of properties or in certain geographic areas, leading to systematic underpayment of claims. Policyholders who receive AI-generated estimates should review them carefully and request a field inspection if they believe the estimate is inadequate.
Restoration contractors are adapting to the AI-driven claims environment by investing in technology that integrates with carrier platforms. Contractors who can submit documentation, estimates, and status updates through carrier-preferred digital channels are more competitive than those who rely on paper-based processes.
