AI in Insurance Claims Adjusting: What Homeowners Need to Know

If you thought dealing with an insurance adjuster was frustrating, wait until you try negotiating with an algorithm. More and more insurance companies are replacing human claims adjusters with artificial intelligence (AI) to process claims. On paper, AI sounds like a tool to improve efficiency. In reality, it’s another way insurers minimize payouts while avoiding accountability.

Allstate’s AI Claims Strategy—and the Walk-Back

One of the most recent examples of this shift comes from Allstate, which has been quietly integrating AI into its claims process. According to The Wall Street Journal, Allstate’s AI, built on OpenAI’s GPT models, is responsible for generating approximately 50,000 customer communications per day—including responses to claims disputes.

Allstate initially embraced the AI rollout, touting it as a way to streamline the process and reduce industry jargon. But when the public caught wind of how much AI was replacing human adjusters, Allstate backpedaled hard. Reports surfaced that the company had asked media outlets to delete or retract quotes from its executives about the extent of their AI use.

Why the sudden hesitation? Because AI-driven claims handling exposes the reality of modern insurance—decisions are being made to protect profits, not policyholders.

Why This Should Concern You

When an AI system reviews your claim, it’s not considering your unique circumstances. It’s not taking into account the stress of losing your home or the frustration of battling your insurance company. It’s following a script—one designed to reduce claim payouts as much as possible.

AI doesn’t have empathy. AI doesn’t have experience in construction or repair. AI isn’t going to go to bat for you when your insurance company tries to lowball your claim.

And here’s the kicker—good luck arguing with an algorithm. When a human adjuster denies your claim, at least you can demand an explanation. When AI makes a decision, your insurer can hide behind the technology, making it even harder for you to fight back.

How to Protect Yourself

For now, the best way to prevent AI from dictating the outcome of your claim is voice-to-voice communication. If you’re dealing with a dispute, insist on speaking with a human claims representative. While AI is creeping into email and online communications, phone calls still force insurance companies to put a human on the line—at least for now.

How to Handle These Conversations

When you do get a human on the phone, carry yourself professionally and strategically. The way you approach these conversations can make or break your claim. A proven negotiation method, The Black Swan Method, can help you stay in control. Here’s how:

• Stay Curious – Ask open-ended questions like, “How did you determine that payout amount?” The goal is to get the rep talking so you can uncover useful information.

• Practice Active Listening – Instead of arguing, let them speak. People tend to reveal more when they feel heard.

• Use Empathy – Recognize that the claims rep isn’t the enemy (even if they’re part of a broken system). Keep them on your side.

• Build Rapport – The more they relate to you, the more likely they are to help. Keep the conversation respectful, even when you’re frustrated.
  

Mastering these techniques keeps you in control of the negotiation, rather than at the mercy of an AI-generated script.

Don’t Let AI Shortchange You

Insurance companies are in the business of paying out as little as possible. Now, they’re using AI to make that process even faster and more automated. If you think your claim is being undervalued, don’t settle.

You need an advocate who knows how to fight back.

I spent nearly 20 years working inside the insurance industry, and I know exactly how these companies operate. Now, I use that knowledge to fight for homeowners like you.

Need Help With Your Claim? Contact Me Today!

If you suspect your insurance company is lowballing or denying your claim unfairly, let’s talk. Book a free 15-minute consultation today, and I’ll tell you if they owe you more—no obligation.

Schedule a Free Evaluation