How is Artificial Intelligence Enabling Incredibly Fast and yet Accurate Claim Settlements?

Do you know that an insurance claim can be settled in just two seconds!? Read on to find out how it is possible and what insurance companies should do to become so fast at processing claims.

The Insurance domain is not simple, and hence not very fast too. Because of its very nature, the basic tasks – like buying a policy, modifying it, or claiming when an event occurs – are quite time-consuming and tedious. Customers usually should fill in long forms, read confusing contracts, and struggle to make sense of them. Hence, some insurance companies may consider it impossible to make their customers happy. However, ensuring customer satisfaction is not rocket science. Claims processing is at the heart of insurance. Studies suggest that customers are satisfied when their claims are settled fast.

‘The two-second claim settlement’ is not fiction. An insurance company in New York, Lemonade, holds the record. A quick reading through their articles reveals the foundation for such unbelievably quick claim settlements. It is undoubtedly technology, especially novel ones like Artificial Intelligence.  The company’s automated Claims Bot made it possible. The customer provided the required details and video evidence to the Bot and with predictive analysis, the Bot could verify and process the claim, all in seconds.

In traditional companies, after they receive a claim request, as a first step they check policy conditions, second – they check for fraud at several levels. Once the two steps are cleared, the third step involves instructing the bank to make the payment.  These steps may take several hours if not days. However, it takes just a second (maybe even less) for a Bot with AI abilities to perform the checks and clear it for processing.

How exactly can AI help in Claims Processing?

• Classify Claims Not all claims can be settled in 2 seconds. But AI makes it happen at least for the claims that can be. It is hence important to categorize claims through various parameters like the events, insurance types, as well as the time it takes to process them. Those that can be cleared by an advanced Bot with AI abilities in just a few seconds will help you receive immense customer loyalty. This conveys to customers your company’s intentions to stand by them in times of their need.
• Streamline the Process AI along with other novel technologies makes several insurance processes faster, more transparent, and highly efficient. AI is undoubtedly fast and good at skimming through large amounts of data, checking for patterns, and identifying anomalies. These latest technologies also make it easier to communicate; customers can communicate with the business, and employees across departments can communicate among themselves. With analysis and easy communication channels, AI tools can minimize not just errors but also human intervention. They help automate several processes and take appropriate actions according to their analysis.

How can Insurance and InsurTech companies leverage AI to tackle disruptions?

Many startups have emerged, offering customer-friendly insurance solutions. They don’t have to think about modernizing old data and hence are a step ahead of the traditional insurance firms in adopting the latest technologies like NLP, AI, etc. Whether old or new, all Insurance firms should keep their technical debt in check and modernize fast. It is impossible to do it all by themselves; however, there is another effective solution.

Outsourcing is the key to unlocking new businesses worldwide. It also helps in sustaining businesses in the face of tough technology disruptions. With outsourcing, you can recruit quality talent or build a team that never sleeps. It helps you scale up, innovate, modernize, and make your business future-proof. It lets you embrace diversity, innovation, and cost-effectiveness all at once!

We have deep experience in building software products for Insurance and InsurTech firms. With our commitment to research and continuous innovation, we build cutting-edge technology products and help several businesses grow faster and stay relevant. From several engagement models, you can choose the one that suits your business and domain. We provide tailor-made software products for companies on the path of innovation and digital transformation. For more tips on adopting technologies at lightning speed, please write to us.