Complex Claims keynote speaker to address industry disruption

PropertyCasualty360: What are the biggest factors disrupting the industry that you plan to cover in your keynote?

Awais Farooq: The three biggest factors disrupting the industry today are litigation complexity, technology and people.

Litigation complexity is a growing disruptor, with factors such as social inflation, rising settlement costs, and nuclear verdicts fundamentally reshaping how claims are managed. These trends are driving up costs and creating new challenges, forcing insurers to rethink their strategies and approaches to remain effective in this environment.

In the case of technology, the industry has amassed a massive amount of data over the years. The current challenge — and opportunity — is to organize that data effectively and enter the next phase of leveraging it to make actionable decisions. This transformation holds the potential to improve efficiency, optimize claims processing, and drive innovation in customer service.

When it comes to people, the industry is grappling with significant challenges, particularly around talent retention. A generational gap is exacerbating this issue, leaving a void in expertise and experience. From a claims perspective, insurance companies must prioritize finding and cultivating talent that can skillfully balance technology with the empathy required in claims handling. At the same time, initiatives such as upskilling and reskilling will be critical for ensuring that employees are equipped to meet the evolving demands of the industry.

PC360: How has globalization impacted the industry?

Farooq: Globalization has significantly impacted the industry by opening access to an incredibly diverse market, creating both opportunities and challenges. On the one hand, heightened competition has emerged as a result of carriers and markets entering the U.S. space with new products and services. These innovations are not only disrupting traditional practices but also reshaping the overall landscape of the insurance industry.

However, globalization also introduces constraints. Regulation challenges, cross-border risk, and cultural differences present notable obstacles. For example, the differing philosophies on how claims are adjudicated and handled across regions can create complexities for insurers operating on a global scale. These factors require companies to adapt their strategies to navigate the regulatory landscape while accommodating diverse market expectations and practices.

PC360: What impact is technology having on the insurance industry, and how will technology continue to play a role?

Farooq: When discussing the impact of technology on the insurance industry, generative AI often comes to mind. However, beyond that, foundational systems such as claims management systems (CMS) are playing a pivotal role in transforming the claims management space. These systems serve as the backbone for efficient operations, enabling insurers to streamline processes and improve outcomes.

Over the past decade, the rise of insurtechs has introduced a wave of innovation, with new tools, resources, and applications emerging at an unprecedented pace. The biggest challenge lies in integrating these disparate elements — bringing together adjudication platforms, inspection services, and other technologies to create a seamless ecosystem. This transformation requires a strategic approach to assembling the “puzzle pieces” into a cohesive framework.

Moreover, technology is reshaping how insurers engage with policyholders, making the claims process more efficient and enhancing communication. The focus is on creating a more fluid and engaging experience, with improved integration and real-time interactions driving this evolution. Whether through internal or external communication, technology is becoming the engine for proactive risk management and customer-centric operations, setting the stage for continued disruption and innovation in the industry.

PC360: What are the biggest emerging risks that industry professionals need to pay attention to/watch for?

Farooq: Escalating cyberattacks are among the most significant emerging risks that industry professionals need to watch closely. Cybersecurity is critically important for both insurers and insureds, as the frequency and sophistication of these attacks continue to rise. Compounding this issue is the fallout from cyber breaches, which often results in litigation and additional exposure, creating a complex and growing area of risk.

Another major emerging risk is the impact of climate events. We are witnessing an increase in the frequency and severity of weather-related disasters, leading to a surge in claim activity. What’s particularly notable is that these events are occurring in areas where such risks were not previously anticipated, further challenging the industry’s ability to predict and manage exposures effectively.

PC360: Can you provide a few key strategies that insurance professionals can use in transforming some of these disruptive challenges into opportunities?

Farooq: Investing in upskilling and reskilling employees is essential for addressing the talent shortage, enabling the workforce to meet today’s demands while preparing for the challenges of tomorrow. This approach not only helps retain top talent but also positions insurers as attractive employers for new talent.

Additionally, emphasizing transparent communication through a client-centric approach is crucial. By adopting a digital-first strategy, insurers can enhance interactions with policyholders, fostering trust and loyalty through seamless and efficient communication.

Finally, building a collaborative ecosystem is a powerful way to address complex claims, litigation challenges, and emerging risks. By partnering with loss adjusting companies, insurtechs, law firms, and other stakeholders, insurers can co-develop innovative solutions and leverage shared expertise to navigate the evolving landscape effectively.

ALM PropertyCasualty360's Complex Claims and Litigation Forum 2025 is where leaders from insurance and the law converge to network, share strategies and dissect urgent industry trends. Don’t miss your chance to Prevent, Prepare and Prevail when it comes to complex insurance litigation. Follow this link to register.

Maura Keller is an award-winning Minnesota freelance writer, editor, book author and proofreader.

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