In an industry increasingly focused on technology, distribution and pricing, claims remains the moment when insurance either proves its value or falls short.
Speaking at the BIBA 2026 conference, Carpenters Group chief executive Donna Richards and claims strategy director Simon Smith (both pictured) maintained that while claims handling has improved significantly in recent years, a disconnect is emerging between how insurance is sold and what customers expect when something goes wrong.
As the largest outsourced motor claims handling provider, working with insurers and brokers across the UK, Carpenters Group operates at the sharp end of the claims journey. For both Richards and Smith, that vantage point provides a consistent view: the industry largely delivers operationally but can fail experientially.
Smith was clear that when claims journeys falter, it is rarely due to process failure, but rather a breakdown in communication once a claim leaves the first notification of loss.
“Claims generally works incredibly well,” he said. “But when they fail, it’s typically after first notification, when responsibility passes across the supply chain and the customer isn’t kept informed about what happens next, this leads to the customer seeking to make contact again, once this happens, the customer confidence can erode and the journey can sometimes fail to meet the service standards expected at the start of the claim.”
Richards reinforced the point, emphasising that this is ultimately about trust.
“If you tell a customer something is going to happen and it doesn’t, that’s the moment confidence drops,” she said. “The uncertainty is what creates distress – not necessarily the claim itself, but the lack of clarity around it.”
Both agreed that while the industry has made major strides in efficiency and throughput over the past 15 to 20 years, customer expectations have evolved just as quickly. Today, consistent, proactive communication is as important as technical delivery.
“Customers can deal with problems,” Smith said. “What they struggle with is silence.”
Both leaders were aligned on the growing gap between digital distribution and real-world claims needs.
“A lot of insurance is now bought digitally,” Richards said. “But claims can’t be entirely digital. In routine situations, that works. But in moments of stress, people want to speak to someone, and the industry is still aligning to that reality.”
Smith agreed, framing the issue as one of balance rather than resistance to technology.
“It’s not about choosing digital or human,” he said. “It’s about designing journeys that flex to the situation and the customer.”
Richards pointed to real examples seen through Carpenters’ contact centre, particularly in out-of-hours support, where customers are sometimes told support is limited because of the way their policy was purchased.
“That’s where the disconnect becomes very real,” she said. “The buying journey sets one expectation, and the claims experience delivers another.”
Both stressed that while AI and automation are improving efficiency, they cannot replace human reassurance at key moments.
“You can’t take the human out of the process,” Richards said. “Technology should support, not replace.”
At the same time, Smith noted that customer preferences are evolving, particularly among younger policyholders.
“We’re already seeing more self-service and messaging, especially outside traditional hours,” he said. “The shape of communication is changing and as an industry we are evolving with that.”
Both highlighted the growing complexity of motor claims as a key pressure point. Advances in vehicle technology, ongoing supply chain disruption and geopolitical factors are all contributing to longer repair cycles and higher costs.
“Claims are becoming more complex in every sense,” Smith said. “From the vehicles themselves to the external factors affecting repair times, it’s a more challenging environment than it was even a few years ago.”
However, this complexity is balanced by improved access to data. Dash cams, telematics and in-vehicle recording systems are giving customers clearer evidence than ever before.
“The customer has never been better equipped to show what actually happened,” Smith noted.
Returning to the role of technology, Richards positioned AI as an enabler but one the industry is still learning how to use effectively.
“We’re all at the beginning of understanding how to apply these tools to the greatest effect,” she said. “It’s not autopilot, it still needs people at the centre.”
That view was shared by Smith, who framed the future of claims as a blend of human expertise and intelligent technology.
“If we get that balance right - great people supported by the right technology - we create something sustainable,” he said.
Taken together, Richards and Smith’s message was consistent: the industry’s challenge is no longer simply improving efficiency but ensuring that digital transformation enhances rather than undermines the customer experience.
“Claims will always be the moment of truth,” Richards said. “What matters is how we show up in that moment.”
