IAG partners with OpenAI to improve insurance claims handling

IAG will test OpenAI voice agents for claims in the first half of FY27. The system will triage calls during natural disasters to speed up customer responses.

Categorized in: AI News Insurance
Published on: Jul 28, 2026
IAG partners with OpenAI to improve insurance claims handling

IAG, Australia's largest general insurer, will begin testing agentic voice technology with OpenAI in the first half of FY27, aiming to speed up claims responses and ease pressure on frontline teams during natural disasters. The partnership will use OpenAI Presence, a recently released system that enables voice-based agent interactions, to support IAG's Australian workforce.

The insurer plans to build the solution alongside OpenAI, following its own governance, security, and responsible AI frameworks. The initial focus will be on high-volume natural perils, where rapid scaling of claims handling can make a critical difference for customers under stress.

How the partnership will work

IAG and OpenAI will co-develop the voice agent technology, integrating it into the insurer's existing claims processes. The system is designed to assist human agents, not replace them, by handling routine inquiries and providing real-time information during surge events. Delivery is expected to start in the first half of the 2027 financial year.

The move extends IAG's ongoing investment in AI, a space where many insurers are now building AI for Insurance capabilities to handle high-volume claims. IAG already has AI tools embedded across its business, and this initiative represents a next step in its strategy.

Natural disaster claims in focus

IAG CEO retail insurance Australia Julie Batch said the initial deployment will target the moments when customers need help most. "Our initial focus will be on where the need is greatest - high volume natural perils - to ensure we help our customers the best way we can at a stressful point in their lives," Batch said.

Natural disasters in Australia, such as bushfires and floods, often overwhelm traditional claims systems. Voice agents could triage calls, gather initial loss details, and provide updates, freeing up human adjusters to handle complex cases.

What leaders are saying

Batch said the partnership will give IAG's people "extra support to help them deliver higher value service to customers." She added that the initiative reinforces the insurer's commitment to "responsible, customer-led innovation."

OpenAI head of go-to-market for Australia and New Zealand Satya Tammreddy said the collaboration aims to "resolve issues faster, expand service coverage and deliver more consistent experiences, while reducing the operational burden on frontline teams."

Why this matters for insurance professionals

For claims handlers and insurance leaders, agentic voice technology could shift how high-volume events are managed. Rather than being overwhelmed by call spikes, teams could lean on AI assistants to handle first notice of loss, status checks, and simple queries. This doesn't eliminate jobs but changes them-requiring new skills in overseeing AI tools and handling exceptions. Insurance professionals looking to understand agentic voice systems can also benefit from OpenAI Courses that cover the underlying technology.


Get Daily AI News

Your membership also unlocks:

700+ AI Courses
700+ Certifications
Personalized AI Learning Plan
6500+ AI Tools (no Ads)
Daily AI News by job industry (no Ads)