Despite years of progress in digitizing the front end of insurance claims, the back-end infrastructure that supports these payments remains outdated and fragmented.
Our latest research, based on insights from over 200 senior insurance professionals in the U.S. and U.K., uncovered a clear pattern: The financial infrastructure that supports claims fund management remains fragmented. This disconnect not only delays payments but also creates operational risks and undermines trust.
The numbers tell the story. Nearly 80% of respondents cited internal process complexity as a key barrier to faster payments. 66% reported struggling to access readily available funds, a challenge that climbs to 74% in the U.S., where decentralized funding structures and manual approval flows persist. Only 1% of insurers said collaboration between claims and finance teams is "highly effective," underscoring how siloed operations remain.
All these responses represent a strategic challenge for insurers striving to stay competitive in a fast-evolving market.
The hidden costs of fragmentation
At the heart of the issue is a lack of real-time financial coordination. Claims, finance, and treasury teams often operate in silos, using separate systems that don't talk to each other. This makes it nearly impossible to track the status of funds, forecast liquidity needs, or reconcile payments without time-consuming manual intervention.
For U.S. insurers, the stakes are especially high. Our research shows that U.S.-based treasury teams are more focused on governance and compliance (37%) than their U.K. counterparts (22%), a reflection of heightened regulatory scrutiny and complex operating environments. Despite this focus, many still struggle with fragmented systems that leave them exposed to delays, errors, and compliance risks.
External coordination adds another layer of complexity. 78% of insurers reported delays associated with third-party involvement, whether from brokers, TPAs, or banking partners.
While these partners play a critical role in the claims ecosystem, the lack of seamless integration and data-sharing slows payments, introduces errors, increases risk exposure and contributes to inefficient liquidity management.
Toward a new model: Real-time financial orchestration
The good news is that the industry is beginning to move beyond patchwork solutions. Insurers are increasingly recognizing that speed, accuracy, and control aren't just about operational efficiency; they're fundamental to customer trust and financial resilience.
This is where real-time financial orchestration comes in. By creating unified financial infrastructure that connects claims, finance, and treasury teams—and extends to external partners—insurers can gain complete visibility into fund flows, automate disbursement processes, and manage liquidity with confidence.
Such infrastructure isn't just about faster payments. It's about enabling insurers to:
- Avoid overfunding and manual cash calls.
- Enhance regulatory readiness through transparent, auditable fund tracking.
- Strengthen resilience in the face of increasing market volatility and regulatory
- scrutiny.
Our research also revealed that early adopters are already exploring smarter fund segregation models, integrated payment platforms, and automation tools that streamline reconciliation and compliance. These innovations are laying the foundation for a claims ecosystem where financial coordination isn't an afterthought, but a strategic advantage.
What's at stake
Insurers can't afford to let back-end inefficiencies stymie them. Rising customer expectations, increased regulatory oversight, and competitive pressure are forcing the industry to reimagine how money moves. The insurers that take steps to modernize financial operations by investing in real-time coordination, intelligent fund management, and integrated platforms will be the ones best positioned to lead.
This isn't just about paying claims faster. It's about creating an ecosystem where every participant, from insurers and TPAs to brokers and banks, operates from a shared source of truth, reducing errors and delays. It's about ensuring that liquidity is always available where and when it's needed, so insurers can deliver on their promises.
The call to action
The future of claims finance is about bold investments in real-time, data-driven infrastructure that connects internal teams and external partners alike. It's about making claims payments a driver of operational excellence and customer trust, not a back-office bottleneck.
As the landscape continues to evolve, insurers must ask themselves: Are we ready to break down the barriers that slow payments and erode trust? If not now, when?
