Yes, says new AI tool
The long list of AI applications in the insurance industry just got a little longer, but this one could spell more money for personal injury claimants and a seismic shift in efficient claims adjusting for insurance companies. Recently, legal-tech company Mighty settled its first personal injury claim using AI, without a human – or lawyer – on either side of the equation. The process involves Mighty’s AI negotiating directly with carriers’ AI models to land on a settlement that appeases both parties, cutting out long delays and hefty lawyer fees.
Joshua Schwadron, Founder and CEO of Mighty, had an epiphany that “a lot of the innovations that happen in personal injury are not passed onto the consumer; they are just taken by the personal injury lawyer, who often makes more money.” So, he got to work building proprietary datasets and methods through Open AI, utilizing decades of experience from across the field, including adjusters, paralegals, lawyers, and personal injury expertise to bring more of these savings to the individual. First, the accident victim uploads their accident report, police report, medical records, and other pertinent details into the software, which spits out a claim valuation to the consumer. Mighty’s AI reaches out to the insurer’s AI with a demand package and asks for an offer to settle the claim, reporting the result to the consumer.
The hyper-efficiency of the AI means that little time or money is used from Mighty’s side, so the customer gets 100% of the settlement. Its platform is free for consumers to use, too. And in the case where Mighty’s AI agent doesn’t find a resolution, it will refer the case to an experienced personal injury lawyer – seamlessly online. “Increasingly, what’s going to happen is that the straightforward cases, which are the vast majority, will be resolved with AI and only the exceptional cases will require deep human involvement,” Schwadron told Insurance Newsnet. He realizes the other consequences, too: fewer humans in the claims industry, and lower overall payouts from the insurance companies, but with the injured parties getting a bigger slice than in the past. Overall, he says, both sides are saving money.
If you ask Schwadron, Mighty offers a powerful new tool to consumers, who have often been faced with two unsightly choices: either settle directly with an auto insurer in an unlevel playing field, or hire a personal lawyer who takes 33% to 40% of the awarded claim, even though the case might not require any heavy legal lifting at all. Yet again, AI has blown an age-old industry paradigm wide open, completely streamlining processes almost overnight, and leaving lots of dust to settle.
LMA Newsletter of 3-2-26
