Vol 48 Issue 1

In short

• Issues with AI use in claims management can arise from biased outcomes and the inability of the tech to understand more complex scenarios.
• At the same time, virtual assistants can be effective in helping with claims intake, and sentiment analysis can identify vulnerable customers and urgent calls that require human intervention.
• For the foreseeable future, AI is a very useful tool for claims teams, but it won’t be replacing claims professionals anytime soon.

Managing claims gives insurers the opportunity to deliver on their promises and allows customers to receive the support and compensation they deserve, when they need it the most. Getting it wrong can be a disaster for both parties, so what happens when AI enters the equation?

According to research from Bain & Company, AI tools could reduce loss-adjusting expenses by 20–25 per cent and leakage by 30–50 per cent, creating more than US$100 billion in benefits for insurers and customers.

AI adoption has been rapid and highly effective in some situations, but in others there is still a gap between achievements and expectations.

“We are at the beginning of an exciting AI journey in claims management, but there is still a way to go before we truly realise the full potential,” says Johan Nelis, senior director of International Solution Consulting at Duck Creek Technologies, a global provider of software solutions for the property and casualty insurance sector.

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