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:
- Lemonade, the new US insurer, says it uses AI to complete the entire claims processin under 3 seconds
- Fukoku Life, in Japan, expects 30% efficiency gains from replacing employees with an artificial intelligence system that can calculate payouts to policyholders.
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.