William Gibson, the author, once said, “The future is already here – it’s just not very evenly distributed.” So what is ‘already here’ in relation to Claims handling?

Two data points:

The Insurer of the Future will handle almost all of its Claims automatically, without human intervention. It will:

  • Detect Claims, using sensors on the Internet of Things (IoT) and data feeds from, for example, death registries
  • Analyze those Claims, drawing on multiple internal and external data sources, and applying Artificial Intelligence (AI) to establish what needs to be done
  • Assess appropriate reserve values, and input them to the insurer’s financial systems
  • Trigger external supply chains, such as clean-up and restoration services, bodyshops, and online retailers, to return the policyholder to their pre-loss state
  • Instruct loss adjusters where necessary, ingest their subsequent reports, and act on their findings
  • Make payments directly into policyholders’ bank accounts where appropriate
  • Trigger, and follow up, recoveries and reinsurance claims as needed

In the early days, this will happen for simpler Claims only. But in due course, as the abilities of Cognitive / AI systems surpass those of humans, Claims personnel will no longer be required by the Insurer of the Future.

Please see Part 4 – Blockchain for further predictions.