---
# AI-based claims automation drives 85% straight-through approval

**URL:** https://www.sigmoid.com/case-studies/ai-based-claims-automation-drives-85-straight-through-approval/
Date: 2026-09-22
Author: Joha Momin
Post Type: page
Summary: Insurance·Property & Casualty·Claims Automation Interactive Case Study AI-based claims automation drives 85% straight-through approval A multi-line P&C insurer processed auto and property...Read More...
---

Insurance*·*Property & Casualty*·*Claims Automation
				Interactive Case Study

# AI-based **claims automation** drives *85% straight-through approval*

					A multi-line P&C insurer processed auto and property claims on a legacy monolith where every claim, however simple, waited in one manual queue. Sigmoid rebuilt the lifecycle as four coordinated microservices spanning intake, assessment, policy, and payment, achieving **85% auto-approval**, **72-hour settlement** on simple claims, and a **30% reduction** in processing cost across the book.

					Manual Claims Handling at Scale, The Before State
					What adjusters faced before automation

						Claims routed through manual review
						Full book
						**

						Straight-through processing coverage
						None

						Adjuster capacity for complex claims
						Low

					Simple and complex claims shared a single queue, so every settlement waited on human judgment and cycle times stretched to weeks.

							Manual
							keyed entry
from documents

							Slow
							weeks to settle
a simple claim

							Costly
							rising cost
per claim

### The business scenario

### A manual claims lifecycle that couldn't keep pace

					The insurer processed auto and property claims through a legacy, monolithic system that leaned heavily on manual review. Every claim — however simple — waited in the same queue behind complex ones. As volumes climbed, cycle times stretched to weeks, operating costs rose, and settlement decisions varied from one adjuster to the next.

							C1

#### Manual document handling

								Adjusters keyed data by hand from PDFs, forms, and damage photos. Extraction was slow, inconsistent, and prone to error before assessment even began.

							C2

#### Slow, uneven assessments

								Damage evaluation and settlement amounts depended on individual judgment. Simple, low-value claims sat behind complex ones, pushing cycle times to multiple weeks.

							C3

#### Costly, hard-to-audit operations

								Fragmented systems drove up per-claim cost and made it difficult to produce a complete, traceable record for regulators across the claim lifecycle.

					Before · average claim cycle time by stage

							Intake & entry

							~2 days

							Assessment

							~6 days

							Policy checks

							~1.5 days

							Approval queue

							~4 days

							Payment

							~1 day

					Simple and complex claims shared one manual queue — a **single bottleneck** for the whole book.

### Sigmoid's solution

### End-to-end claims automation, built on microservices

			Sigmoid built a claims platform that decomposes the lifecycle into independent services — intake, assessment, policy, and payment — coordinated by an event-driven workflow. Simple claims flow through untouched, while complex ones route cleanly to human adjusters, with a complete audit trail behind every decision.

				Claims automation architecture

					Claimant
					Docs · photos
					FNOL forms

						Claims Intake
						Service
						
						Document upload
						OCR extraction
						Data validation

						Assessment
						Service
						
						ML damage eval
						Repair-cost model
						Image recognition

						Policy
						Service
						
						Coverage checks
						Limits & deductibles
						Eligibility rules

						Payment
						Service
						
						Settlement calc
						Disbursement
						Payout routing

					Event-driven workflow orchestration · Saga pattern (Camunda + Apache Kafka)

					EXTERNAL INTEGRATIONS
					
						Image recognition APIs
						Repair shop networks
						Medical providers

					Audit trail · full decision traceability

### Workflow orchestration

					A Saga pattern coordinates long-running claims. Each step emits an event that triggers the next, with built-in compensation logic that rolls back cleanly when a step fails.

### External integrations

					Live connections to repair shop networks, medical providers, and image recognition APIs bring third-party estimates and evidence directly into assessment.

### Compliance & audit

					Every claim decision, approval, and payment is logged with full traceability — producing a complete, regulator-ready audit trail across the lifecycle.

				Technology stack

						ML / AI
						TensorFlowOpenCV

						Document processing
						Tesseract OCRAWS Textract

						Workflow engine
						CamundaApache Kafka

### How a claim flows

### Claim submission workflow

			Each stage triggers the next through an event, orchestrated by the Saga pattern. Submit a simple claim to watch it settle end-to-end — no adjuster required.

				Press "Submit claim" to run the workflow

						Claim **CLM-4821** · Auto · minor collision · est. $2,140

						Reset
						Submit claim

						STEP 01

##### Document upload → validation

						Photos and FNOL forms uploaded; files validated for completeness.

						STEP 02

##### OCR extraction → assessment

						Textract and OCR pull structured fields and hand off to assessment.

						STEP 03

##### ML damage analysis → approval

						Damage and repair cost scored; within limits, the claim clears review.

						STEP 04

##### Payment calculation → settlement

						Settlement computed against policy and disbursed to the claimant.

				event bus · kafka

					Waiting for submission. The claim sits idle until an event kicks off the workflow.
				
				*Illustrative

### Business impact

				0%
				of claims auto-approved through straight-through processing
				Automating the end-to-end lifecycle cleared the manual bottleneck, freed adjusters to focus on complex cases, and lifted customer satisfaction to a **4.5★** rating on claim experience.

### 72 hrs

						Settlement time for simple claims, down from weeks in the manual queue.

### 30%

						Reduction in claims processing cost across the book of business.

### About Sigmoid

					Sigmoid combines data engineering and AI consulting to help enterprises gain a competitive advantage through effective data-driven decision-making. We partner with insurers and other data-intensive businesses to modernize core operations — turning fragmented, manual workflows into automated, auditable systems built on cloud-native architecture.

					From claims automation and document intelligence to ML-driven assessment and event-driven orchestration, Sigmoid delivers production platforms that scale with the business.

### Modernizing claims operations?

					Talk to our team about automating your claims lifecycle with straight-through processing and full auditability.

					Start a conversation 

[lc_get_post post_type="lc_block" slug="cs-blur-section-code"]

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