Travelers

Travelers faced high operational costs across its claims call centres and underwriting processes, with manual handling of high claim volumes and slow submission intake times in specialty insurance. The company needed to improve efficiency and profitability across personal, commercial, and specialty insurance lines while managing a large workforce.

Travelers deployed a two-stage innovation strategy, with AI at the core of 'Innovation 2.0.' This included a generative AI natural language voice agent for initial claims calls, straight-through processing for eligible claims, advanced predictive models for renewal underwriting in personal insurance, and gen AI agents to mine internal and external data for underwriting risk assessment. Over 20,000 employees now use AI tools regularly.

Travelers' claim call centre population is down by a third, with four claims centres being consolidated into two. Over 50% of all claims are now eligible for straight-through processing, with customers adopting it in approximately two-thirds of cases. Personal insurance underwriters achieved a 30% reduction in average handle times, and specialty insurance submission intake was cut from hours to minutes. The underlying combined ratio improved by nearly 8 points to 83.9.

• A phased innovation strategy (foundational analytics first, then AI-powered automation) builds the institutional knowledge needed to scale AI effectively.
• Straight-through claims processing and AI voice agents can dramatically reduce contact centre headcount while still accommodating customers who prefer human interaction.
• AI's impact extends beyond claims into underwriting, pricing segmentation, and submission intake — compounding efficiency gains across the entire insurance value chain.