Our sister publication Insurance Times asked industry experts how emerging technologies will impact the future of insurance claims management. Here’s what risk managers and insurance buyers need to know.
How will emerging technologies shape the future of insurance claims management?
Benedict Burke, chief client officer, Crawford
There is no doubt that emerging technology will reshape the claims space.
There is a lot of technology to list which is changing the landscape, including the Internet of Things (IoT), blockchain, machine learning, automation/chatbots, augmented/virtual reality, personalisation, drones and remote sensing.
In recent months, generative artificial intelligence (AI) has been the buzzword. It has huge applications for data analytics, fraud detection and claims processing.
Insurers will be able to use it to help create consistency in claims handling and it has the potential to become a ‘digital assistant’ to help loss adjusters and claims handlers gather and understand a lot of data very quickly. This can only improve the customer journey and create better outcomes.
“Generative artificial intelligence has huge applications for data analytics, fraud detection and claims processing.”
Crawford is already piloting the technology in the US to help us digest First Notification of Loss data and automatically triage the claims.
More widely, AI will help firms to understand and predict claims trajectories and help us to address some of the root causes of claims inflation ahead of time. Of course, there are challenges and without effective regulation, the sector simply won’t be able to realise the benefits of AI.
What no-one must forget as we implement tech in new and exciting ways is that the customer is the centre of the claim and providing high-quality service, with the customer at the heart, is paramount.
Dani Katz, co-founder and director, Optalitix
Claims payment is a critical part of an insurers’ capabilities, requiring a delicate balance between paying and declining fraudulent or invalid claims.
Technology such as AI, external data sources, satellite technology and other tools are now a key part of an insurer’s claims arsenal.
Insurers “sell” their willingness to pay claims when needed by the policyholders. To boost customer feedback, paying more claims is better. However, paying incorrect claims causes losses, or high premium increases. Technology means the difference between an insurer’s success or failure.
”IoT is widely used to measure claims likelihood and severity, such as in flood detectors for property insurance.”
AI is an exciting new technology to allow quicker and more accurate claims decisions by “learning” from past claims. External data from other data providers gives insight in assessing claims. For fraud, for example, credit data may be useful.
Satellite images are used to determine claims eligibility, such as damaged roofs following catastrophic events. IoT, on the other hand, is widely used to measure claims likelihood and severity, such as in flood detectors for property insurance.
Emerging technologies for claims are new and untested. As they improve, they become critical for insurers to compete.
Accessing the wide variety of tools in an easily usable way on a single claims workbench is vital to ensure claims assessors use them more often.
Mark Costello, chief executive officer, Taveo
Emerging technologies are revolutionising the future of insurance claims management in a variety of ways.
Automation and efficiency are at the forefront, with automated workflows freeing up personnel for more strategic roles and streamlining of claims handling, which speeds up claim reviews, benefiting customer wait times and improving their satisfaction with the service provided.
Data analytics and predictive modelling also play a crucial role, as they aid in fraud detection and help insurers to better allocate resources and make more strategic decisions.
Similarly, AI and machine learning can assist in making better and more accurate decisions and can also learn over time to improve their performance.
”Remote assessment technologies can enable virtual inspections, which can improve accuracy”
Real-time data from IoT devices can provide the current data that helps to expedite claims more accurately, preventing the risk of future losses.
Remote assessment technologies can enable virtual inspections, which can improve accuracy by providing more comprehensive and detailed damage assessments.
Lastly, customer engagement platforms improve communication and offer self-service options, ensuring that the entire process meets evolving customer expectations and regulatory requirements.
When integrated to solve specific industry and customer pain points, these technologies can foster a more efficient, transparent and customer-centric claims management process, aligning with evolving customer expectations and regulatory requirements.