Maurice Zicman (pictured), vice president of CX strategy at TP in Australia, has addressed the shifting landscape for insurers as extreme weather events become increasingly common and severe.
Zicman noted that weather is now a central factor in driving insurance claims, with the industry facing mounting operational challenges.
Recent data from the Insurance Council of Australia (ICA) indicates that, in the first half of 2025, insurers processed more than $1.8 billion in claims linked to extreme weather, stemming from over 148,000 separate incidents.
Notable events such as Ex-Tropical Cyclone Alfred, which accounted for more than $1.36 billion in losses, and widespread flooding in North Queensland and the NSW Mid North Coast and Hunter regions, have demonstrated that large-scale weather events are a recurring issue rather than isolated anomalies.
Each major weather event results in a sharp increase in claims volume, requiring insurers to quickly scale their operations. Policyholders, often experiencing significant distress, expect prompt and effective assistance.
Zicman identifies the main challenge as the need to expand capacity while maintaining fairness and transparency in claims handling.
“The opportunity lies in combining digital capabilities with the empathy that only human claims professionals can provide, ensuring technology augments, not replaces the human empathy during times of crisis.,” he said.
Traditional claims processes can be strained by these surges, highlighting the need for solutions that combine technology and human expertise.
AI-powered triage systems can help prioritise urgent cases, while automation is being used to process straightforward claims from initial lodgement through to settlement. Predictive analytics are also being used to anticipate spikes in claims based on weather forecasts.
A recent white paper from Gallagher Bassett found that nearly 90% of Australian insurers now incorporate AI into their claims processes, marking a 38% increase over the previous year.
The industry is moving toward a model where digital tools support, rather than replace, human judgement and empathy.
Disaster scenarios often create opportunities for fraudulent activity. The Insurance Fraud Bureau of Australia estimates that fraudulent claims cost the sector up to $2.2 billion each year.
Following major events, insurers may encounter inflated repair bills, staged losses, or entirely false claims.
AI-driven fraud detection, image analysis, and behavioural analytics are being used to identify suspicious claims early in the process.
However, Zicman cautions that efforts to combat fraud must be balanced with the need to avoid false positives, which can undermine trust with legitimate claimants.
Many insurers are outsourcing customer experience management to specialist providers, who can offer both the scale and technical capabilities needed to manage large volumes and optimise self-service channels.
While rapid claims processing is important, Zicman emphasises the need for insurers to focus on resilience and preparedness.
This includes investing in surge capacity, establishing agreements with other insurers, and strengthening partnerships with government agencies, emergency services, and local communities.
Operational flexibility – such as redeploying staff, leveraging AI for volume management, or pre-positioning assessors in high-risk areas – is seen as essential for responding to future events.
Despite advances in technology, Zicman stresses that empathy and clear communication remain central to effective claims management.
He describes the goal as a “high-tech, high-touch” approach, where digital solutions and human skills work together to support policyholders.
As the frequency of extreme weather events increases, Zicman encourages the insurance sector to integrate climate data into operational planning, use AI and automation to streamline routine claims, and direct human expertise to more complex cases.
He also calls for greater collaboration across the industry to improve fraud prevention while maintaining customer trust.
By building resilience frameworks that connect insurers, government, and communities, the industry can better prepare for future challenges.
The ongoing evolution of claims management underscores the importance of balancing technological innovation with the human touch, especially during periods of crisis.
