Hippo Holdings Inc. (NYSE: HIPO) announced the rollout of an AI-driven claims workflow system designed to digitize its claims process. The San Jose-based insurance company said it expects more than 70% of homeowners claims to be filed digitally with the implementation.

The system centers on "Clara from Claims," a conversational AI agent that operates continuously to capture and structure claim data, flag inconsistencies, and route claims. The company said initial contact with customers now occurs in under two hours on average following deployment.

"We've reimagined our claims operation from intake through resolution, moving from legacy systems to a unified platform that enables faster workflows, clearer communication, and more consistent outcomes for homeowners at scale," said Peter Piotrowski, Chief Claims Officer at Hippo.

The AI system is integrated across multiple claims functions including triage, subrogation screening, document review, customer communications, and claim summaries. Hippo stated that based on internal modeling, its current staffing structure could support a 30-35% increase in claims volume without additional headcount.

The modernization includes digital and aerial adjudication capabilities. Aerial imagery and roof measurements support remote estimating to reduce on-site inspections, while virtual inspections are used to accelerate payment processing during catastrophe events.

"Our vision is a claims operation powered by an agentic AI workforce supporting adjusters on everything from first notice through adjudication and audit," said Kyle Ramsay, Chief Product Officer and Chairman of Hippo's AI Committee.

The information was provided in a company press release statement.