The insurance industry has a people problem. The U.S. Bureau of Labor Statistics projects the industry could lose around 400,000 workers through attrition by 2026. Many experienced claims professionals are nearing retirement — and there's no clear pipeline to replace them.
Meanwhile, the people still working are burning out. A 2023 Ringover survey found 82.5% of workers in finance and insurance reported burnout — significantly above the national average.
Why this matters for claims
Burned-out employees make mistakes. They lose focus. They miss details buried on page 847 of a medical file.
When experienced professionals leave, institutional knowledge walks out the door. New hires need years to develop the pattern recognition that veteran adjusters have. And claims volume isn't decreasing. Health insurers process about three billion medical claims annually (Premier). The math doesn't work.
What AI can (and can't) do
AI doesn't replace experienced claims professionals. It handles the work that burns them out:
- Summarizing 500-page medical records
- Deduplicating redundant documentation
- Flagging cases that need senior review
- Extracting key data points across years of treatment history
When AI handles the tedious extraction work, experienced professionals can focus on decisions that require judgement — complex claims, litigation risk, causation analysis.
Training and onboarding
AI can also accelerate how quickly new hires become productive. By flagging critical details in medical records and highlighting what to focus on, AI tools provide built-in training support. New adjusters learn faster because the AI shows them where to look. Veterans spend less time answering basic questions because the documentation is already structured.
The capacity multiplier
One experienced adjuster with good AI tools can handle what previously required two or three. Not because they're working harder — because they're not spending hours on manual extraction. That's how you solve a talent shortage without hiring people who don't exist.
How OctopusLM helps stretched teams
We built OctopusLM for the reality of Canadian healthcare claims: high volume, complex records, limited staff.
- Process records in hours, not days
- Structured outputs ready for clinical review
- Page-level citations for quick verification
- Works with IME physicians, case managers, and TPAs
- PIPEDA compliant. Enterprise-grade security.
Sources:
U.S. Bureau of Labor Statistics projections
Ringover Burnout Survey 2023
Premier Inc. Claims Research 2025