Innovation Powers Disaster Recovery as Insurers Move Claims and Payout Digital

Innovation is born in times of struggle. And in the aftermath of Hurricanes Helene and Milton, with insurers across the southeastern United States seeing a massive surge in claims as homeowners face the challenge of repairing and rebuilding their lives, digital innovations are helping shape faster recovery solutions.

For homeowners whose properties were hit by the hurricanes, the immediate need is for cash flow to start repairs. Yet, historically, post-disaster claimants faced long waits, spending hours navigating automated call systems and enduring delays to secure payouts.

“The old way this used to work was that you’d get into a call tree, probably wait on hold for hours, and explain your problem — often with significant documentation needs,” Ian Drysdale, CEO at One Inc, told PYMNTS’ Karen Webster.

With no guarantee of access to traditional communications infrastructural like mail service and fax machines, even basic electricity, the ability to process claims via mobile platforms has proven indispensable in simplifying and expediting payouts for insurers.

“This has all changed in the world of mobile technology and instant payment systems,” Drysdale said, stressing that speed and efficiency are paramount in times of crisis.

A particularly complex aspect of the insurance claims process, especially for costly repairs, involves “monitored” claims, where the lien holder — usually the mortgage lender — must also approve payments. Drysdale said this traditionally adds weeks to the process, potentially leaving homeowners waiting while damage, like mold or a roof leak, worsens.

One Inc’s own digital solution, he said, brings in the lender’s approval electronically, expediting payouts so repairs can begin swiftly. The text-based claims system, developed with Hi Marley, allows claimants to initiate and track claims through text messages without even speaking to an adjuster.

The addition of instant digital payments offers immediate relief, especially in cases where traditional mail may be inaccessible due to damaged mailboxes or homes.

“People want their house fixed quickly, not prolonged waits and mounting frustration,” Drysdale said.

The ability to approve and disburse payments digitally represents a significant shift for both insurers and policyholders, he said. One Inc’s platform connects lien holders, contractors and insurance agents, allowing funds to be transferred almost in real time. This ecosystem is crucial, Drysdale said, in helping homeowners navigate the aftermath of disasters.

As digital solutions improve efficiency, they also help insurers manage a critical financial metric: the combined ratio, or the ratio of premiums received to claims paid out. For many property and casualty insurers, recent years have seen an unfavorable ratio, with several firms losing more in claims payouts than they earn in premiums.

Drysdale said digital claims management could trim the combined ratio by one to two percentage points, a significant saving in an industry where even a single point can be crucial for profitability. “We typically can take an insurer from 15% digital claims to 70% to 80% digital in a day,” he said.

One Inc recently partnered with JPMorgan, enabling carriers to process both inbound premiums and outbound claims payments more seamlessly. This collaboration reflects a growing trend in the insurance industry to simplify complex processes and eliminate friction. Drysdale noted that these kinds of advancements have become a strategic priority for insurers, allowing them to focus resources on more pressing operational needs.

In addition to simplifying payments, insurers are also beginning to harness artificial intelligence (AI) to anticipate disaster claims better and detect fraud more efficiently.

By analyzing variables such as elevation, building materials and historical weather patterns, AI models can help insurers underwrite policies more accurately, particularly in high-risk areas prone to natural disasters. Beyond underwriting, AI is also used in claims adjudication and fraud detection, helping insurers identify suspicious claims. “Insurance fraud is a significant issue,” Drysdale said. “Gen AI is addressing it, from intercepting fraudulent payments to spotting false claims.”

Looking ahead, Drysdale believes the future of the insurance industry lies in a fully digital experience, where homeowners can not only initiate claims remotely but also track the entire claims process from their phones, receive rapid approvals and get digital payments in near real time. This is what the industry should prioritize, he said, especially as climate events grow more frequent and severe.

“We’re processing about $85 billion a year, with around $60 billion in claims payments,” said Drysdale. “It’s about paying out to people quickly when they’re in trouble.”

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