Monday, October 19th, 2026 — More than one-third of insurance executives anticipate significant job elimination in claims management by 2029 as artificial intelligence takes on a larger role in insurance operations, according to a new global study from KPMG.
The September 2026 report, Unlocking AI Value in Insurance, surveyed insurance leaders across 20 countries to examine AI adoption, workforce expectations and organizational readiness. Among respondents evaluating the future of claims management, 36% predicted significant role elimination, while another 47% anticipated hybrid operating models involving fewer employees and redesigned responsibilities. Only 14% expected AI to primarily augment existing workers.
Despite those expectations, relatively few insurers have fundamentally changed how their claims departments operate. Just 3% of respondents reported reaching the functional redesign stage of AI implementation in claims management, compared with 28% who said AI had become part of daily workflows. Most organizations remain focused on improving existing processes rather than rebuilding them around the technology.
Across the insurance industry, 71% of respondents said their primary AI applications involve content generation or routine task automation. Only 29% reported operating end-to-end processes through AI agents or automation.
Claims management is already among the functions experiencing visible changes. Insurers are applying AI to accelerate claims processing, identify potential fraud and reduce administrative workloads. KPMG cited instances where claims processing and settlement times have fallen from several days to a single day or even hours, allowing claims professionals to devote more attention to complicated or sensitive cases.
The study also identified substantial gaps in workforce preparedness. Only 8% of insurance executives rated their employees as highly proficient with AI tools, despite 54% reporting that their organizations provide effective training. Data quality presents another obstacle, with just 11% describing their organizations as having strong data foundations and governance suitable for scaling AI.
KPMG's findings suggest insurers are preparing for considerable changes in the claims profession without having fully established the technology, employee capabilities or organizational structures needed to support those changes.
For claims professionals, the findings point toward an industry in which automated systems increasingly handle routine documentation and processing while human employees concentrate on more complex decisions and customer interactions. The ultimate effect on staffing remains uncertain, however, because the workforce figures reflect executive expectations rather than confirmed reductions.
KPMG's research involved 44 insurance leaders representing organizations with at least 500 employees. The survey was conducted in May 2026, with individual questions drawing responses from smaller groups of participants.
