By Steve Abbott, Head of Claims at PoloWorks 

19th June 2025

If it feels like the demands on claims teams keep growing, that’s because they are. Regulatory expectations have climbed sharply – regulators now insist that making a claim should be just as easy as buying a policy, with robust support at every step. The UK’s new Consumer Duty rules even warn insurers that under-resourced claims departments or excessively slow service can cause harm to customers and won’t be tolerated. In practice, this means claims leaders must ensure they have efficient processes and enough skilled staff to deliver fair outcomes. Falling short isn’t just a reputational risk; it could mean regulatory action. 

On top of this, Lloyd’s and the FCA are introducing new oversight standards that affect claims. For example, Lloyd’s have put a spotlight on data accuracy and operational resilience in claims handling. Delegated claims data must now be timely and accurate, and firms (including third-party administrators) faced a March 2025 deadline to meet strict operational resilience requirements – essentially proving their systems and processes can withstand disruptions. At the same time, emerging risks are adding complexity to claims. From AI-driven fraud attempts to climate-related litigation, the range of expertise needed in a claims team is broader than ever.  

Perhaps the most pressing challenge I hear about from industry peers is the talent crunch. The insurance workforce is aging, and more people are retiring from claims roles than are entering. It’s predicted that the talent gap will hit operational functions especially hard as experienced adjusters exit faster than we can replace them. We see this as knowledge walking out the door of Insurers – decades of insight that you can’t just replace with a new hire overnight. And recruiting fresh talent into claims can be tough; younger professionals often aspire to more glamorous fields. All of this leaves many insurers worrying how they’ll maintain service levels and compliance with a leaner team. 

My perspective is that we need to tackle these issues on multiple fronts, often by forming meaningful partnerships. At PoloWorks, we’ve made it our mission to stay ahead of the regulatory curve so our clients don’t fall behind. We maintain close links with industry bodies and keep our team trained on the latest rule changes – whether it’s new Lloyd’s guidelines or data protection standards – so that when we handle claims for a client, compliance is baked in. We also invest heavily in claims data management and reporting. That means when a client needs to demonstrate to regulators that their claims data is accurate and complete, we’ve got them covered with solid audit trails and insights. 

Equally important is filling the resource gap. Outsourcing can be a lifeline here. By drawing on a pool of experienced claims professionals through a partner like PoloWorks, insurers can access skills or resource capacity that they might lack in-house – from complex technical adjusters to specialists in certain lines of business.  

We can flex up support when volumes spike or bring in niche expertise for a tricky claim, ensuring the policyholder still gets prompt, expert service. In short, we act as a safety net, allowing insurers to meet regulatory expectations and customer needs even when internal bandwidth is stretched thin. As more insurers exit certain lines of business, Claims Adjusters often follow their Underwriters, creating a resource pinch. Our team is experienced in managing discontinued lines, allowing us to take over the handling of run-off portfolios, enabling insurers to focus on their live book. 

The road ahead for claims teams will have its share of hurdles, no doubt. But by being proactive – investing in compliance and data capabilities, nurturing talent, and leveraging external support – we can turn these challenges into a new way of operating. I firmly believe that claims functions which adapt in these ways will not only satisfy the regulators, but also deliver the kind of reliable, responsive service that keeps customers delighted and business partners on side.