The insurance industry has invested heavily in digital transformation—yet when it comes to the final step of getting claims funds to policyholders, the coordination between claims and finance teams remains broken.
That's the finding from Vitesse's new research report, The State of Claims Finance: Tackling Roadblocks in Payments, Liquidity and Financial Coordination, based on insights from more than 200 senior insurance professionals across the US and UK.
The Collaboration Crisis
Only 1% of insurers rate collaboration between claims and finance teams as "highly effective."
This isn't just an internal communication problem—it's a structural issue that creates real-world friction in how quickly insurers can settle claims, access working capital, and maintain visibility over delegated funds.
The data reveals three critical bottlenecks:
1. Internal Process Complexity Slows Disbursements
79% of insurers cite internal process complexity as a barrier to efficient claims payments. When claims teams approve a settlement, finance teams still face manual reconciliation, fragmented systems, and approval chains that add days—or weeks—to the final disbursement.
78% say coordination with external partners (brokers, TPAs, banks) creates additional friction, turning what should be a straightforward payment into a multi-step negotiation across disconnected platforms.
2. Liquidity Access Remains a Hidden Problem
66% of respondents say accessing readily available funds is a challenge—rising to 74% among US insurers.
This matters because insurers often sit on capital that's technically available but operationally inaccessible. Funds trapped in traditional banking infrastructure, pre-funded accounts, or manual reconciliation queues can't be deployed efficiently when claims need to be paid.
The result: insurers either over-reserve (tying up unnecessary capital) or delay payments while waiting for liquidity to clear through legacy systems.
3. Visibility Into Delegated Funds Is Nearly Nonexistent
Only 32% of finance leaders say they have visibility into delegated claims funds managed by TPAs, MGAs, or brokers.
When carriers delegate authority to pay claims, they're also delegating control over capital—often without real-time insight into how much is being held, where it's sitting, or when it will be reconciled. This creates blind spots in treasury management and makes it nearly impossible to optimize working capital across the entire claims ecosystem.
Why This Matters Now
Many insurers have modernized their front-end claims workflows—digital intake, AI-powered triage, automated adjudication. But if the financial infrastructure underneath those workflows remains fragmented, the gains from digital transformation get lost in the back office.
As Philip McGriskin, CEO and founder of Vitesse, notes: "Many insurers are doing the right things, but they're doing them on top of disconnected infrastructure. When teams, systems, and partners lack shared visibility and control, friction becomes inevitable."
The research also highlights regional differences. US-based treasury leaders placed greater emphasis on governance and compliance (37% named it a top priority compared to 22% in the UK), reflecting the complexity of navigating decentralized systems and evolving regulatory requirements.
What Needs to Change
The shift from fragmented workflows to unified financial infrastructure isn't just a technology upgrade—it's a strategic priority for insurers who want to:
- Reduce settlement times by eliminating manual reconciliation and approval bottlenecks
- Improve capital efficiency by gaining real-time access to working capital across the claims ecosystem
- Strengthen oversight over delegated funds managed by TPAs, MGAs, and brokers
- Increase trust with policyholders through faster, more transparent claims payments
Claims finance can't stay buried in the back office. It needs to become a driver of capital efficiency, operational performance, and policyholder trust.
About the Research
The findings are based on a quantitative survey of 213 senior insurance professionals across the US and UK, conducted in Q1 2025. Respondents included leaders from carriers, MGAs, TPAs, and brokers, with roles spanning claims, finance, and treasury functions.
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