Federato, the AI-native platform for the full policy lifecycle, offering underwriting, policy administration and billing tools for insurance carriers, has introduced Federato Claims, an end-to-end claims management system built on the same technology foundation as the rest of its platform.
The new product is designed to translate coverage decisions, reserve changes and adjuster reasoning into structured data that flows back into underwriting, pricing and product teams while a claim remains open, rather than waiting until it has been resolved.
Federato says this real-time exchange is possible because Claims shares the same AI-native architecture and federated context graph as its underwriting, policy administration and billing modules.
The company notes that claims can make up as much as 80% of an insurer's costs, yet it remains the part of the policy lifecycle where carriers typically have the weakest visibility into their own decision-making. Federato points to rising claim severity, unpredictable catastrophe losses, and pressures from litigation and social inflation as reasons loss costs are moving in ways many insurers had not planned for, adding that claims is frequently where new loss trends first become visible.
According to the company, older claims systems were built simply to log decisions and lack the ability to connect a claim back to the underlying risk, policy and underwriting context, while AI tools bolted onto those systems can speed up tasks such as summarising files or drafting correspondence but stop short of capturing the reasoning behind coverage decisions or spotting emerging patterns across a book of claims.
Federato Claims aims to address this by capturing coverage activity, reserve movement and claims reasoning as it happens, helping surface where decisions are becoming inconsistent, where a policy clause is triggering repeated disputes, or where reserve adjustments and overrides are clustering.
The company says this is intended to let insurers respond before such patterns affect loss ratios: product teams could revise problematic policy wording before further policies are issued, underwriters could adjust risk appetite if a segment shows early signs of severity pressure, and pricing teams could reflect consistent reserve overruns in rates at renewal rather than absorbing the impact later.
Federato Claims is available immediately, either as an addition to the existing Federato platform for current customers or as a standalone product for carriers and managing general agents that have not yet adopted Federato's other tools but manage claims internally.
Federato co-founder and chief technology officer William Steenbergen said, 'Claims is the one place in the policy lifecycle where you find out if your underwriting was right.
'In a world where AI agents are accelerating underwriting decisions, it is critical to systematically capture the feedback loop between claims and underwriting. Every other legacy system treats that discovery as the end of the file. We built Federato Claims to treat it as the start of the next decision: the reserve you adjust, the appetite you tighten, the policy form you fix before the next renewal.'