Human in the Loop, On the Loop, and Everywhere in Between

Orla Nixon of New York Life on why AI in insurance must amplify empathy, not replace it

As use of artificial intelligence accelerates across the insurance value chain, the industry finds itself wrestling with a deceptively simple question: where does the human belong?

“In the loop” has long been the default answer. But during a recent conversation with Orla Nixon, head of Claim Operations at New York Life Group Benefit Solutions (NYL GBS), a more nuanced framework emerged — one grounded in real operational realities as much as emerging technology. One that resonates not only with operators and technologists, but with regulators, employers, and employees navigating insurance at their most vulnerable moments.

Welcome to the era of human in the loop, on the loop, and everywhere in between.

Beyond “Human in the Loop”

The distinction matters.

“Human in the loop” typically implies direct human intervention within an automated process. “Human on the loop,” by contrast, suggests a system that is largely automated, but actively overseen, audited, and validated by people.

While the terms may sound subtle, the implications are not, particularly in regulated, human-centered environments like insurance. In my conversation with Nixon, we dissected this very concept — humans in the loop versus humans on the loop. Those differences are increasingly top of mind for regulators. They know guardrails are essential, but the technology is evolving quickly, often requiring oversight models to adapt in parallel.

That tension defines the current AI moment in insurance. Carriers, startups, and vendors are advancing AI capabilities rapidly, while regulators work to establish durable, responsible frameworks that protect consumers without stifling innovation.

Claims Is Where Theory Meets Reality

For Nixon, these questions aren’t abstract. She leads a 1,600-person claims organization handling life, disability, and voluntary benefits. These are not transactional interactions. They are deeply personal ones.

That reality is reflected in what employees themselves are saying. In a recent NYL GBS survey, 62% of employees said they strongly prefer human support when navigating sensitive life events, and 54% favored human interaction when resolving billing or claim-related matters. Fewer than one in ten expressed interest in AI-only support across benefits needs.

“If someone is calling us, it’s because they’ve become disabled or they’ve lost a
loved one,” Nixon said. “You can’t support that moment with technical skills alone.
Compassion and empathy are non-negotiable.”

This is where simplistic automation strategies break down.

Many carriers approach AI primarily as an efficiency lever: faster cycle times, lower costs, higher throughput. Nixon is clear that while efficiency is a factor to consider, optimization without empathy is short-sighted.

“We are in the people business,” she said. “The benefits we offer are too personal to ever remove the human.”

Technology as Relief, Not Replacement

That doesn’t mean rejecting technology. It means using it deliberately. Nixon sees significant opportunity in applying AI and automation to administrative and repetitive work, freeing claims professionals to focus on what humans do best: judgment, communication, and care.

“If we can simplify the administrative burden, that’s a win,” she said. “Years ago, the technology just wasn’t there. Now it is. So we have a responsibility to look at it thoughtfully.”

The keyword is thoughtfully. Nixon is wary of digitizing broken processes without rethinking them, a pattern the insurance industry has repeated more than once. The goal is not to do the same work faster. It’s to redesign the experience around the people involved, employers and employees alike.

How Culture Powers the Approach

At NYL GBS, culture isn’t a slogan. It powers the team’s approach.

Their long-standing commitment to being there in the moments that matter most for the people they serve shapes how Nixon evaluates every technology decision. AI must support that mission, not undermine it.

“That’s not a machine,” she said. “That’s a person.”

This cultural lens also informs how the business approaches transformation timelines. The traditional five-year roadmap is gone. AI is forcing shorter, more iterative planning cycles. Twelve, eighteen, twenty-four months at most. But speed cannot come at the expense of trust, either internally with employees or externally with clients and customers.

The Education Gap Starts Long Before Claims

The conversation also surfaced a less obvious risk: benefit literacy. Many coverage gaps don’t reveal themselves until a claim is filed. By then, it’s too late. Employees often make benefit decisions during a compressed two-week ope enrollment window, without fully understanding long-term implications.

That lack of clarity shows up clearly in the data: barely one-third of employees (36%) reported feeling extremely knowledgeable about which benefits they need to enroll in to meet their needs.

“There’s a huge education gap,” Nixon said. “People don’t realize what they didn’t elect or what buy-ups were available until they’re navigating a significant life event.”

Technology can help here too, not by overwhelming people with options, but by enabling ongoing, contextual education throughout the year that meets people where they are. Employers, carriers, and advisors all have a role to play.

The Real Future: Humans, Everywhere

As the industry debates how far automation should go, Nixon offers a refreshingly
grounded answer.

“We need humans everywhere,” she said. “In the loop, on the loop, under the loop,
sideways.”

It’s half-joke, half-truth.

AI will continue to reshape insurance operations. Regulators will evolve their oversight. Efficiency pressures won’t disappear. But in areas like claims, where insurance meets real life, removing humanity isn’t innovation — it’s erosion. The carriers that get this right won’t be the ones with the most automation.

They’ll be the ones who successfully combine the intentional use of technology with a human-centered approach to deliver service excellence.