Fragmented Claims Funds Drain Insurer Liquidity and Delay Payments

Insurance claims adjusters are increasingly burdened by inefficiencies rooted in outdated financial infrastructure. While modern banking has evolved, the systems supporting claims fund flows remain largely fragmented, leaving carriers, TPAs, and MGAs to navigate a maze of disconnected accounts, manual reconciliations, and delayed reporting. These legacy practices are not just inefficient—they actively hinder liquidity, increase operational costs, and erode profitability.

The impact is widespread. From tens of millions in idle cash to underfunded accounts slowing claim settlements, insurers are struggling to keep up with demand in a market shaped by rising catastrophe losses and volatile rate dynamics. Adjusters often bear the brunt of these delays, dealing with frustrated policyholders and complex reconciliation processes. Reports show nearly 80% of insurers cite internal inefficiencies and poor coordination with partners as major roadblocks to timely payments.

This operational drag affects more than just the balance sheet. In an environment where customer experience is directly tied to retention, slow claims resolution increases churn—especially in small commercial and specialty lines. The article urges a shift to shared, connected platforms that enable real-time visibility and automated workflows. For adjusters, the implications are clear: modernized systems can streamline processes, reduce friction, and ultimately lead to faster, more accurate claims outcomes for all stakeholders.