Tool Sprawl Risk Audit — Insurance Claims Operations

Signs of tool sprawl in Insurance Claims Operations

• First Notice of Loss (FNOL) routing is a guessing game — calls and digital intake hit a generic queue, then bounce between adjusters who shouldn't have caught the file in the first place, adding 2-4 days of cycle time before any actual work happens.
• Claim cycle time is regressing — total severity, salvage decisions, and settlement turnaround have all drifted in the wrong direction since 2022 and leadership can't tell whether it's catastrophe load, talent attrition, or workflow rot.
• Fraud detection is rules-based and the rules haven't been retuned in three years — SIU is buried in false positives while organized fraud rings keep clearing low-severity thresholds undetected.
• Adjuster attrition is structural — the experienced examiners are retiring, the new hires take 18 months to become productive, and the documentation needed to compress that ramp lives in the heads of the people who are leaving.