How to Leverage AI to Combat Burnout, Reduce Administrative Workload and Improve Retention for Claims Professionals  

Mark Bertels, Executive Vice President, Risk Management Services, CorVel 

Staffing shortages have been in the headlines since the beginning of the pandemic. Today, this crisis is compounded by the "silver tsunami"—the mass exodus of older workers into retirement. These individuals take decades of experience and knowledge with them, leaving behind many hard-to-fill positions. Recent reports suggest the insurance sector alone could lose around 400,000 workers by 2026. These staffing shortages—whether due to COVID-19, Baby Boomers retiring, or other factors—have disrupted every stage of the claims management process, from assessing claims to ensuring injured workers receive timely medical care. 

Generative AI is Putting Hours Back in the Workday 

Despite these challenges, solutions exist to address the widening talent gap. Generative AI (GenAI) offers a transformative way to bridge knowledge deficits, automate tedious tasks, and improve employee retention. Across the workers' compensation industry, GenAI is streamlining workflows, allowing claims adjusters to spend more time where it matters most: with injured workers. 

For example, this advanced technology can rapidly assess the level of risk for claims by analyzing key factors such as return-to-work estimates, physical demand requirements, pain levels, medical compliance, comorbidities, claim history, and psycho-social indicators. It can also reduce time spent summarizing and reviewing medical documents by automating these processes. Tasks that once took 10 minutes may now take only 1 minute, freeing up valuable time for adjusters to focus on higher-value activities. 

The Financial Impact of Burnout and Turnover 

Burnout and employee turnover are not just workforce challenges—they also have significant financial implications. The cost of replacing an individual employee can range from one-half to two times the employee's annual salary. In the claims management industry, where expertise is crucial, losing an experienced adjuster can lead to inefficiencies, slower claim resolution times, and reduced customer satisfaction. 

By leveraging GenAI to alleviate workload pressures, companies can mitigate these risks, protect their bottom line, and create a more stable and productive workforce. The financial savings associated with retaining experienced employees and improving operational efficiency can further justify the investment in advanced AI technologies. 

Beyond Efficiency: Enhancing Employee Satisfaction 

In addition to improving efficiency, GenAI plays a critical role in reducing burnout. As workers leave the industry—either for other opportunities or retirement—the remaining workforce is often burdened with additional responsibilities. GenAI alleviates this strain by handling meticulous administrative tasks, enabling employees to concentrate on meaningful, person-centered work. 

Moreover, integrating GenAI into tools like Risk Management Information Systems (RMIS) enhances communication across all stakeholders, including patients, doctors, and insurers. This seamless collaboration not only improves claims outcomes but also empowers employees to feel supported in their roles. 

Addressing Employee Concerns About AI Integration 

While the benefits of GenAI are clear, it’s important to address potential employee concerns about AI adoption. Many workers may fear that automation will lead to job displacement or diminish the value of their expertise. Employers must proactively communicate that the purpose of GenAI is to augment, not replace, human workers. 

By handling repetitive, low-value tasks, GenAI frees employees to focus on the interpersonal and strategic aspects of their work. Training programs and ongoing support can further help workers embrace AI as a tool for empowerment, ensuring they feel confident and capable of leveraging new technologies. 

A Strategic Investment in the Future 

Today’s employers face a rapidly shifting workforce landscape. While competitive pay and benefits remain essential, the pandemic revealed the importance of investing in employees and advanced technology to ensure job satisfaction and retention. Long-term, leveraging GenAI could lead to a more engaged and resilient workforce, equipped to thrive amid ongoing staffing challenges. 

As the workforce evolves, adopting technologies like GenAI will be critical for creating a culture of innovation and adaptability. GenAI enables companies to recruit new talent, retain skilled workers, and deliver better outcomes for all stakeholders—employees, injured workers, and insurers alike. 

During this period of significant workforce changes, it’s imperative for industry leaders to prioritize investments in generative AI as a strategic response to staffing shortages and workforce evolution. By embracing AI-driven solutions, companies can foster a workplace culture that values innovation, collaboration, and employee well-being. 

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