Above-average storm activity is forecasted for the 2025 CAT season. Carriers and MGAs only have a little time left to ensure that they are ready to rise to the occasion. When disaster strikes, will you be prepared to deliver superior customer service and streamlined claim reporting processes – all while protecting your bottom line? Fortunately, there’s still time to implement custom Insurance AI CAT claims solutions.

The 2025 CAT Season Forecast 

It’s still early, but it looks like 2025 could bring severe wildfires and storm activity.

• Wildfire Season: 2025 has already been a devastating year for wildfires in California. More wildfires may be in store. According to The Washington Post, California and other western states could face a severe fire season due to hot and dry conditions. 
• Hurricane Season: The 2025 hurricane forecast from Colorado State University contains some bad news. Due to warm sea surface temperatures and La Nina conditions, researchers are predicting above-normal hurricane activity. We’re likely to see 17 named storms and nine hurricanes. There is a 51% chance that a major hurricane will make landfall somewhere on the U.S. coastline, and there’s a 33% chance that the Gulf Coast from the Florida Panhandle to Brownsville will see a hurricane. 
• Severe Storms: Thunderstorms, hailstorms and tornados can also lead to mass losses, and the risks are rising. According to AccuWeather, Tornado Alley has shifted, meaning that regions that are not used to elevated tornado risks are now exposed to a higher chance of storms. At the same time, Aon reports that insured losses from severe convective storms are on the rise. This is not simply because of climate change; other factors, such as population distribution in high hazard states, are also at play.

Severe weather has been a growing threat for a while now. Every year, dire warnings make headlines – but some insurers still are still failing to leverage Insurance AI to improve their CAT claim readiness. CBS News reports that thousands of insured homeowners impacted by the Los Angeles wildfires are frustrated with insurers. Low payout offers are one complaint, but many are also upset that they’re having trouble getting any support. 

How Insurance AI Can Help

When a disaster strikes, policyholders want to know that you’ll be there for them. Of course, insurers need to follow the terms of the policy, and sometimes this means denying claims because they aren’t covered or offering payouts that are lower than what policyholders would like. However, aside from the contractual details, insurers can still use Insurance AI solutions to be there for policyholders. They can offer omnichannel, multi-lingual first notice of loss (FNOL) options; use smart claim triage, service dispatch and claim team alerts to mitigate urgent situations; and provide easy access to claim status updates.

Why aren’t insurers already doing these things? In the past, it came down to resources. When claims volume surged, insurers simply had no way to give each and every policyholder immediate attention. Now, that’s no longer the case. With Insurance AI solutions that are both accessible and affordable, insurers can easily scale and provide instant service and claim updates throughout CAT events. 

In fact, by using the power of Voice AI, carriers and MGAs can unlock the ability to receive one claim every six seconds, enabling them to keep up with claim surges during all types of catastrophic events.

Taking Care of Claimants When It Matters Most

When policyholders are dealing with an urgent claim, they don’t want to jump through hoops to report the loss and receive support. Here are just a few ways you can enhance their claim journey:

• FNOL Reporting Options: Claimants want to use the claim reporting method that’s most convenient for them at that moment, and they want the process to be as fast and painless as possible, whether they’re reporting online, by phone or via SMS. If the Internet is knocked out due to the CAT event and they want to call in their FNOL, they should be able to do so with zero hold time.
• Language Options: Being able to report the claim in their native language is also a major plus. When people are stressed, they often revert to their native languages, a phenomenon that’s been studied and written about in Emotion. It can also be difficult to describe a claim with precision or navigate insurance terms when you’re not communicating in your primary language. 
• Claim Confirmation: Ideally, the claimant should receive confirmation that you’ve received the FNOL along with their claim number and instructions for checking their claim status.
• Claim Team Alerts: Your FNOL process can triage claims and send claims summaries and flags to your team, alerting them of details that need immediate attention. Your FNOL AI can also be integrated with your fraud detection platform.
• Automated Loss Mitigation: If a loss situation is getting worse by the minute, fast mitigation can make all the difference. AI can be integrated with other systems and set up to auto-deploy service providers to mitigate situations such as water damage.
• Instant Claim Status: With an AI-driven process in place, your claimants will be able to check their claim status by interacting with an AI agent anytime 24/7. Best of all, this instant access alleviates the burden on your human team.

If insurers can deliver a positive FNOL experience, they can get claims off to a good start and avoid a lot of the frustration, bad press and customer churn that tends to follow a widespread disaster. 

You Can Be CAT-Ready in as Little as One Month

With the Liberate AI platform, you don’t have to worry about runaway project timelines and costs. We have a proven track record of delivering AI implementations for insurers on time and on budget. In many cases, the phase one deliverable is implemented within 30 days, providing unprecedented speed to market. 

The bottom line: There’s still time for you to get your claims operation CAT-ready this year. Imagine answering all calls with zero wait time, providing bilingual support, and enabling omnichannel FNOL intake so you can receive a new FNOL every six seconds if needed! 

If you need a practical way to meet customer needs while controlling costs, Liberate AI solutions are the answer. These solutions are not just popular with insurers – policyholders love them too. 

Within just a few months of adopting Digital FNOL, Allied Trust reported that 22% of their claimants were selecting the new process. “Our claims representatives are hearing positive feedback from the policyholders who have used it,” says Sarah Eichler, Claims Operations Manager at Allied Trust. “They describe the digital FNOL as quick and easy to use with no wait. It provides instant gratification. Download the Allied Trust case study to learn more.