The Estimated $5.6 Billion Blind Spot: D&O Claims Running on Outdated Workflows. Enter Claimence — No Known Competition

D&O Coverage Analysis, Now Automated. Financial Lines Claims — Widely Regarded as Most Complex — Has Largely Been Left Behind. Claimence Aims to Change That.

NEW YORK, NY, UNITED STATES, April 16, 2026 /EINPresswire.com/ -- A single Directors and Officers (D&O) insurance claim can cost thousands in outside counsel fees — for coverage analysis that Claimence’s AI now completes for claim handler confirmation in under 30 minutes (based on internal testing). Claimence, LLC announced the commercial launch of what the company believes to be the first purpose-built AI platform for Financial Lines insurance claims processing — automating D&O liability claims analysis, widely considered the largest, most complex, and highest-cost segment of the Financial Lines market.

An estimated $5.6 billion cost center — projected to reach $11.8 billion by 2031, according to industry research — Financial Lines claims handling has largely been left behind while the insurance industry invested billions in AI for underwriting, fraud detection, and personal lines. To Claimence’s knowledge, not one purpose-built AI platform has been built to address it. Carriers, TPA’s, and Brokers processing D&O claims today largely rely on manual workflows that have changed little since the mid-1980s.

D&O securities class actions and derivative actions are reported to have increased. EPL claims are reported to have risen over 31% since 2020. Some published industry surveys suggest as many as 77% of carriers report difficulty retaining qualified claims handlers. Generative AI has, in Claimence’s assessment, reached the accuracy threshold required for complex Financial Lines legal analysis.

"Every senior Financial Lines claims professional we speak with recognizes the problem immediately — manual processes, months of delay, outside counsel fees for work that could take minutes. The market has needed this for forty years. We built it. We are here."
— Anthony Faulise, Acting Chief Product Officer, Claimence, LLC.

What using Claimence looks like: Upload a complaint and a policy. Get a documented coverage analysis and preliminary determination letter in under 30 minutes (based on internal testing). No templates. No routine outside counsel. No waiting. Each analysis is designed to include full reasoning and source references, giving claims handlers transparency to validate and apply their judgment before finalization.

AI That Assists — Not Replaces — Claims Professionals. A growing concern is that AI will replace claims professionals with automation. Claimence was built on the opposite principle. The platform is designed to accelerate policy-to-complaint cross-referencing, coverage mapping, and preliminary determination drafting — but final authority over every coverage decision remains with the claims professional. AI handles the heavy lifting. Humans make the calls. For professionals, that means less manual work and more time doing what demands their expertise most.

Carriers face what many in the industry regard as growing exposure to bad faith litigation and regulatory scrutiny. An AI-only approach creates legal and reputational risk. Claimence is designed to mitigate that risk, keeping human judgment at the center of every determination, delivering faster, better-documented analysis and a stronger defensible record. The platform is designed to reduce unnecessary legal expenses — reserving outside counsel for matters that are, or may develop into, complex litigation, contested coverage positions, or high-severity disputes where outside counsel adds the most value.

“The goal was never to take humans out of the process. It was to give them better tools — so they can focus on the work that actually requires their expertise, faster and with a stronger record behind every decision.”
— Anthony Faulise, Acting Chief Product Officer, Claimence, LLC.

• 89%+ accuracy (estimated) on first-pass autonomous analysis — claims handlers can then direct platform focus to refine the result
• 30-40% reduction in claims analysis costs (estimated)
• 5-10x faster claim cycle time — from months to hours (estimated)
• Automated coverage determination letters — generated in minutes, with state-specific disclaimers (currently available)
• No to minimal integration required — pure SaaS, deployed by the Claimence team
• Customizable — platform can be tailored to a client's specific Financial Lines book and coverage positions
• Human-in-the-loop by design — AI accelerates analysis, but final coverage authority stays with claims professionals, designed to strengthen defensibility and reduce bad faith exposure

Claimence is designed to solve both the technology and domain knowledge problems. While general legal or claims management platforms may exist at the margins, Claimence believes the intersection of insurance policy language, securities law, and multi-jurisdictional regulatory frameworks represents a barrier general-purpose tools are not, in the company’s assessment, genuinely capable of addressing. Hands-on Financial Lines practitioner expertise is embedded into the platform’s architecture — a domain foundation not easily replicated.

“Claimence is a revolutionary new product which I believe will meaningfully enhance the claims handling capacity of any insurance underwriting company and/or brokerage company.”
— Christopher Cavallaro, Managing Director, ARC Excess & Surplus, LLC.

Version 1 has launched with Directors and Officers. Version 2 is expected to bring the full Financial Lines market.

Claimence is now accepting demo and partnership inquiries from Carriers, TPAs, MGAs, MGUs, Brokers, Law Firms, and Reinsurers.

Request a Demo. Explore a Partnership. Contact Claimence.

Media and Business Contact: Anthony Faulise, Acting Chief Product Officer
| press@claimence.com | www.claimence.com

About Claimence, LLC.
Claimence, LLC is an AI-powered SaaS company automating Financial Lines insurance claims processing. Built on the principle that AI should empower claims professionals — not replace them — the platform is designed to accelerate coverage analysis while keeping final decision authority with experienced claims teams. The platform currently automates Directors and Officers (D&O) liability claims. E&O, EPL, Fiduciary, and Cyber coverage are expected in subsequent releases. Claimence is designed to serve Carriers, TPAs, MGAs, MGUs, Law Firms, Brokers, and Reinsurers across the United States. Headquartered in New York, NY.

This press release contains forward-looking statements and performance estimates. Actual results may differ materially. Performance metrics are based on internal alpha-stage testing and are not guarantees of future performance. Accuracy figures reflect specific testing conditions and may vary based on claim complexity, policy type, and claims handler engagement. Competitive positioning statements reflect Claimence’s knowledge as of the date of this release. This release does not constitute an offer to sell or solicitation to buy any securities.

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Sources

1. $99bn global financial lines market, 7.5% CAGR: https://www.metastatinsight.com/report/financial-lines-insurance-market
2. $6bn NA financial lines claims management cost center: https://www.fortunebusinessinsights.com/claims-management-market-110629
3. Financial lines claims handling unchanged since ‘80s: https://www.womblebonddickinson.com/uk/insights/articles-and-briefings/changing-face-claims-handling-financial-lines
4. Insurtech $7bn growing to $37bn: https://www.fortunebusinessinsights.com/insurtech-market-112110
5. EPL Claims up 31% 2020 - 2024:
a. 2024 claims: https://www.eeoc.gov/newsroom/eeoc-publishes-annual-performance-and-general-counsel-reports-fiscal-year-2024
b. 2020 claims: https://www.eeoc.gov/newsroom/eeoc-releases-fiscal-year-2020-enforcement-and-litigation-data
6. Claims frequency up 50-100%: https://www.marketreportsworld.com/market-reports/professional-liability-insurance-market-14716026
7. 70-90% carriers using manual processes: https://insly.com/en/blog/how-do-manual-vs-automated-claims-handling-processes-compare
8. Cost of outside counsel D&O Claim: https://astraea.law/insights/sec-crypto-enforcement-defense-wells-notice
9. Rate of straight through processing: https://www.insurancethoughtleadership.com/claims/straight-through-processing-2021
10. 77% of carriers struggle with talent: https://www.claimsjournal.com/news/national/2025/09/24/333043.htm
11. 65% of carriers piloting AI: https://www.insurancethoughtleadership.com/ai-machine-learning/insurance-industry-embracing-ai
12. Metromile valuation: https://techcrunch.com/2022/07/29/lemonade-closes-on-acquisition-of-insurtech-metromile-promptly-lays-off-about-20-of-its-staff
13. Gabi valuation: https://coverager.com/experian-acquires-gabi-for-320-million
14. Itel valuation: https://www.reuters.com/technology/thoma-bravos-nearmap-buy-insurance-tech-firm-itel-over-13-billion-2025-05-20/
15. Solera valuation: https://www.cfo.com/news/private-equity-firm-acquires-solera-for-65b/663294
16. $5.6bn NA claims handling market 13% CAGR: https://www.fortunebusinessinsights.com/claims-management-market-110629

Anthony Faulise
Acting Chief Product Officer, CLAIMENCE, LLC.
PRESS@CLAIMENCE.COM
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