Editor's Note: This is another article in a multi-part series that examines the use of AI in the
claims space.
According to the National Oceanic and Atmospheric Administration (NOAA) the United States endured 27 confirmed billion-dollar weather and climate disasters in 2024. That figure is on track to increase by nearly 20 percent by the end of 2025. And whether we are talking about declared “nat cat” events, “kitty cats,” or other instances where claims volume and severity spikes, the impact on insurers is felt across the business—from the bottom line to the frontline insurance professionals working to make policyholders whole after reporting a loss.
Since science has not yet figured out how to control the weather, these natural disasters will continue to occur. And for the insurance industry, these events will continue to result in serious stress on the claims process. In addition to the significant financial impact related to claims volume and severity following catastrophic events, insurers must also contend with employee burnout and fatigue, increased attempts at fraud, missed subrogation opportunities, and concerns about the policyholder experience. All of these factors are directly influenced by how efficient, effective, and accurate an insurer’s claims process is, especially in the aftermath of a disaster.