Comprehensive data compiled from extensive research on legal settlement administration and intelligent document processing transformation
Key Takeaways
- IDP is scaling fast: The market hit $10.57B in 2025 and is projected to reach $91.02B by 2034 (26.20% CAGR), fueled by rising claims and settlement administration volume.
- Manual workflows are a major drag: Claims teams spend about 30% of their time on low-value document review/data entry, slowing outcomes and increasing overhead.
- Bad data is expensive: Poor data quality costs organizations roughly $12.9M per year, driving rework, delays, and payment errors.
- Digital disbursement is now the performance standard: Digital payouts achieve about a 98% success rate versus 77% for paper checks (even worse without a structured claims process).
- Adoption is accelerating: Digital payments in class actions and mass torts grew 3,200% in four years, reflecting a rapid shift away from check-based distribution.
- AI automation delivers measurable ROI: AI-based claims systems report ~73% cost-efficiency gains and up to 90% faster processing, reducing cycle times and staffing burden.
- Fraud controls are proving their value: Real-time screening prevented 723M+ fraudulent claims in 2024, alongside a 40%+ YoY decrease in fraudulent settlement claims with improved screening.
- Speed drives claimant satisfaction—and outcomes: 31% of claimants report dissatisfaction, and 60% of dissatisfaction is tied to slow settlement timelines.
Market Size and Industry Growth
1. The global intelligent document processing market reached $10.57 billion in 2025
The intelligent document processing (IDP) market has reached substantial scale, valued at $10.57 billion in 2025. This growth reflects increasing demand from claims administrators seeking automated solutions for settlement distribution and document handling. Organizations processing high volumes of claimant documentation are driving adoption as they seek alternatives to manual workflows. Source: Fortune Business Insights
2. IDP market projected to reach $91.02 billion by 2034 at 26.20% CAGR
The intelligent document processing market is expected to grow from $10.57 billion to $91.02 billion by 2034, representing a compound annual growth rate of 26.20%. This trajectory indicates sustained enterprise investment in document automation technologies, particularly within legal and financial services sectors where claims processing volumes continue increasing. Source: Fortune Business Insights
3. Class action and mass tort settlements exceeded $40 billion annually for three consecutive years
Settlement volumes have remained at historic highs, with class action and mass tort settlements exceeding an estimated $40 billion annually from 2022 through 2024. This sustained volume creates substantial document processing demands for claims administrators managing fund distribution across large claimant populations. Source: Duane Morris
4. Nuclear verdict awards totaled $31.3 billion in 2024, up 116% from 2023
Nuclear verdicts—jury awards exceeding $10 million—reached $31.3 billion in total value during 2024, representing a 116% increase from the previous year. The median nuclear verdict climbed to approximately $51 million in 2024, up from $21 million in 2020. This trend increases pressure on settlement administrators to process claims documentation efficiently. Source: Talli
The Impact of Manual Document Processing
5. Claims handlers spend 30% of their time on low-value document review tasks
Manual document processing creates significant productivity drains, with claims handlers dedicating approximately 30% of their time to low-value work such as document review and data entry. This time allocation diverts resources from claimant communication and case resolution activities that directly impact settlement completion rates. Source: Shift Technology
6. Poor data quality costs organizations $12.9 million annually
Gartner research quantifies the financial impact of poor data quality at $12.9 million per year for average organizations. In claims administration, data quality issues manifest as incorrect claimant information, duplicate submissions, and validation errors that delay fund distribution and increase administrative costs. Source: Talli
7. 31% of claimants express dissatisfaction with their experience, with 60% citing speed as the cause
Claimant satisfaction surveys reveal that 31% of individuals who received payouts expressed dissatisfaction with their experience. Among dissatisfied claimants, 60% cited settlement speed as the primary cause of their negative experience, underscoring the importance of streamlined document processing. Source: Shift Technology
AI-Powered Document Automation Performance
8. 78% of companies now use AI for document processing
AI adoption in document processing has reached mainstream status, with 78% of companies now utilizing AI for document handling—a substantial increase from previous years. This adoption rate indicates that organizations not implementing AI-driven document processing risk falling behind competitors in efficiency and accuracy. Source: AIIM
9. AI-based claims systems deliver 73% increases in cost efficiency
Organizations implementing AI-based claims processing systems report 73% increases in cost efficiency compared to manual processing methods. These savings stem from reduced labor requirements, faster processing cycles, and decreased error rates requiring rework. Source: V7 Labs
10. Automated systems achieve 95% document processing accuracy
Texas courts implementing automated document processing systems achieved 95% accuracy rates, significantly exceeding typical human performance levels. This accuracy improvement reduces rework requirements and accelerates claims processing timelines while maintaining compliance standards. Source: National Center
11. A startup utilizing DocuWare's IDP platform achieved 90% recognition rates for scanned document data
A documented case study demonstrated that a startup implementing DocuWare's intelligent document processing platform achieved 90% recognition rates for scanned document data. This capability transforms previously manual intake processes into streamlined automated workflows, enabling automated extraction of claimant information and supporting documentation. Source: DocuWare
12. Travel insurer achieved 57% automation rate while reducing processing time from weeks to minutes
A travel insurance implementation demonstrated the transformative potential of AI document processing, achieving 57% automation of claims handling while reducing processing timelines from weeks to minutes. These efficiency gains translate directly to improved claimant satisfaction and reduced administrative costs. Source: Shift Technology
13. More than half of claims processing activities will be handled by technology by 2030
McKinsey projects that more than half of all claims processing activities will be handled by technology by 2030, representing a fundamental shift in how settlement administration operates. Organizations maintaining manual-dominant processes face competitive disadvantages in both cost structure and processing speed. Source: N2uitive
Digital Payment Adoption and Performance
14. Digital payments achieve 98% success rate compared to 77% for paper checks
Digital payment methods demonstrate substantially higher completion rates, achieving 98% success compared to just 77% for paper checks when a claims process is in place. Without a structured claims process, paper check success rates drop to 55%. This performance gap makes digital disbursement essential for maximizing claimant redemption rates. Source: Western Alliance Bank
15. 94% of class action payees prefer digital payments over paper checks
Claimant preferences strongly favor digital disbursement, with 94% of class action payees indicating they prefer digital payments over traditional paper checks. This preference reflects expectations for speed, convenience, and accessibility that modern payment platforms can deliver. Source: Western Alliance Bank
16. Digital payments in class actions and mass torts combined grew 3,200% in four years
The number of class actions and mass torts utilizing digital payments increased by more than 3,200% over four years, from just 17 cases in 2020 to 558 cases in 2024. This adoption trajectory indicates digital disbursement has transitioned from emerging technology to industry standard. Source: Western Alliance Bank
17. Mass tort settlements with digital payments grew 800% from 2022 to 2024
Mass tort settlement digital payment adoption accelerated even faster than class actions, with 800% growth from 2022 to 2024. Additionally, 90% of mass tort payees prefer digital payments, demonstrating clear alignment between claimant preferences and digital disbursement capabilities. Source: Western Alliance Bank
Compliance and Fraud Prevention
18. Real-time fraud screening prevented over 723 million fraudulent claims in 2024
Automated fraud detection systems demonstrated substantial effectiveness, preventing more than 723 million fraudulent claims during 2024. This screening capability protects settlement funds for legitimate claimants while reducing administrative burden on claims teams investigating suspicious submissions. Talli's platform includes built-in KYC and OFAC screening to safeguard every disbursement. Source: Western Alliance Bank
19. Fraudulent settlement claims decreased 40% after increasing 19,000% between 2021-2023
After fraudulent class action and mass tort claims increased by more than 19,000% between 2021 and 2023, improved screening technologies achieved a more than 40% decrease in 2024. This reversal demonstrates the effectiveness of modern fraud prevention when properly implemented. Source: Western Alliance Bank
20. MDLs account for nearly two-thirds of federal civil litigation
Multidistrict litigation (MDL) represents a large share of the federal civil docket in recent years, concentrating document volume into fewer, higher-scale proceedings, concentrating massive document processing requirements within a smaller number of large-scale settlements. This concentration makes specialized claims administration platforms capable of handling high volumes increasingly valuable. Source: Talli
21. Approximately 95% of personal injury cases settle before trial
The vast majority of personal injury cases—approximately 95%—settle before reaching trial, creating substantial document processing and fund distribution requirements. This settlement volume requires scalable infrastructure capable of processing claims documentation and disbursing funds efficiently across large claimant populations. Source: Talli
Industry Adoption and Infrastructure Trends
22. 65% of organizations have or are considering new IDP projects
Investment in intelligent document processing continues growing, with 65% of organizations either having implemented or actively considering new IDP projects. Among these organizations, 45% plan to automate a new use case, indicating expansion beyond initial implementations. Source: DocuWare
23. 66% of new IDP projects will replace existing systems
The majority of new intelligent document processing implementations—66%—involve replacing existing systems rather than first-time deployments. This pattern indicates organizations are upgrading from earlier-generation solutions to more capable platforms offering AI-driven capabilities. Source: DocuWare
24. Claims forms projected to grow 27% in IDP adoption over the next two years
Claims form processing represents one of the fastest-growing IDP use cases, with 27% adoption growth projected over the next two years. This growth reflects recognition that claims intake automation delivers substantial efficiency improvements compared to manual document handling. Source: DocuWare
25. 61% of IDP processes still include paper documents
Despite digital transformation progress, 61% of intelligent document processing workflows still include paper documents as input sources. Additionally, 48% of respondents expect paper volumes to increase in the coming year, indicating continued need for OCR and document digitization capabilities. Source: DocuWare
26. 62% of IDP systems now involve external users
Intelligent document processing applications have expanded beyond internal operations, with 62% of systems now involving external users such as claimants and customers. This shift toward front-office applications increases requirements for user-friendly interfaces and secure document submission portals. Source: DocuWare
Scale and Complexity Indicators
27. Total bankruptcy filings rose 11.5% to 542,529 in the year ending June 2025
Total personal and business bankruptcy filings increased 11.5% to 542,529 in the year ending June 2025, indicating continued economic pressures generating claims processing volume. These filings create substantial document processing requirements across the legal system. Source: U.S. Courts
28. BFSI segment captured the largest IDP market share in 2024
The Banking, Financial Services, and Insurance (BFSI) segment captured the largest share of the intelligent document processing market in 2024. Claims administration within this sector drives substantial adoption as organizations seek to streamline reconciliation and reporting processes. Source: Fortune Business Insights
Transform Your Claims Administration with Modern Technology
The statistics presented throughout this article demonstrate a clear industry shift toward intelligent document processing and digital disbursement platforms. Settlement administrators facing increased claim volumes, rising claimant expectations, and pressure to reduce costs can no longer rely on manual processes that consume 47% of settlement funds before reaching claimants. Modern AI-powered platforms deliver 73% cost efficiency improvements while achieving 98% payment success rates—performance levels that manual processes cannot match.
Talli's comprehensive claims administration platform addresses every challenge highlighted in these statistics. Our intelligent document processing capabilities automate claim intake and validation, while our digital payment infrastructure ensures rapid fund distribution with built-in fraud prevention. Settlement administrators using Talli reduce processing timelines from years to weeks, increase claimant satisfaction, and maximize the portion of settlement funds reaching intended recipients.
Ready to modernize your claims administration process? Explore how Talli can help you achieve the efficiency gains and claimant satisfaction improvements demonstrated in these statistics.
Frequently Asked Questions
Why does claims document processing efficiency matter for settlement administrators?
Document processing efficiency directly impacts claimant satisfaction and fund distribution timelines. With 31% of claimants dissatisfied with their experience and 60% citing speed as the primary cause, streamlined document handling translates to better outcomes. Additionally, only 53 cents of every tort dollar currently reaches claimants—automated processing helps reduce administrative overhead and maximize funds reaching intended recipients.
How does AI automation improve claims document processing accuracy?
AI-powered document processing systems achieve 95% accuracy rates compared to lower human performance levels, while reducing processing time by up to 90%. These systems leverage OCR technology and machine learning to extract data from both digital and scanned documents, validate claimant information, and route submissions through appropriate workflows automatically.
What makes digital payments more effective than paper checks for settlement distribution?
Digital payments achieve a 98% success rate compared to just 77% for paper checks with a claims process in place. Additionally, 94% of class action payees prefer digital payments, and adoption has grown 3,200% over four years. Digital disbursement eliminates issues with lost mail, address changes, and uncashed checks that plague traditional paper-based distribution.
How do modern platforms address fraud prevention in claims processing?
Real-time fraud screening systems prevented over 723 million fraudulent claims in 2024. Modern platforms incorporate KYC verification, OFAC screening, and automated fraud detection that reduced fraudulent settlement claims by 40% year-over-year. These capabilities protect settlement funds for legitimate claimants while reducing investigation burden on claims teams.
What should claims administrators look for in document processing technology?
Effective claims document processing platforms should offer cloud-based deployment for scalability, AI-powered data extraction with high accuracy rates, integrated compliance features including KYC and OFAC screening, real-time visibility dashboards, and flexible digital payment options. With 66% of new IDP projects replacing existing systems, administrators increasingly seek platforms that consolidate multiple capabilities into unified solutions.
