Popularization of AI Fosters Insurance Innovation

Traditional methods of filing claims have remained largely unchanged for decades, and this is no longer acceptable but they will be replaced by new, touchless options that use AI to minimize human interactions and cut down on the amount of time wasted.

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Even before the popularization of technology like ChatGPT among consumers, there has been a rise in the demand for digital services across industries, including insurance. In fact, according to a recent study examining auto insurance specifically, the majority of consumers trust a fully AI-automated claims process and half wanted completely digital services. Taking it all a step further, another study found 41 percent of insurance customers are likely to switch insurance providers due to dissatisfaction with their carrier’s digital capabilities.

It’s clear there is a rising demand for digital services, and as technology advances, the insurance industry—which was once a laggard when it came to innovation—now must keep pace with the demand for more efficient and streamlined processes. Traditional methods of filing claims have remained largely unchanged for decades, and this is no longer acceptable. In its place will be an all new, touchless option that uses AI to minimize human interactions and cut down on the amount of time wasted.

Balancing touchless and human-in-the-loop

As it stands, one of the main pain points with traditional insurance claims is the number of touchpoints involved. Because 43 percent of consumers still want human interaction mixed into their digital services, it’s important companies offer a variety of avenues from completely self-service to human driven. However, while it’s important to keep human-in-the-loop when working with highly automated technology to help as needed and retain a certain level of empathy, completely human driven claims processes lead to a heavier workload for everyone in the chain and, ultimately, a slower workflow. This hurts customer satisfaction mostly.

But there is a light at the end of the tunnel, and it comes in the form of AI-powered touchless claims.

The barriers to entry are deceivingly low, requiring companies to refocus on the customer experience and what can be done now—in smaller steps—to set the foundation for touchless claims later on. However, despite widespread consumer demand and a low threshold to adoption, the industry has yet to fully embrace touchless claims.

What will touchless claims look like?

Currently, the claims process is a long, arduous journey. In the future—in the case of auto insurance—the claims process will have already begun before the claimant even reaches their home, initiated by a QR code on their insurance card. This QR code can bring the claimant directly to the carrier’s claims portal via a mobile phone application where they can cut through the red tape of identification and extensive forms and go straight to taking photos of the vehicle in order to access damage and retrieve vehicle information.

These photos will help the AI used by the mobile app to create an estimate, arrange a local body shop to do the work and set up a vehicle rental – all within the app. Claimants will also be able to reach a human through the app if they so choose, but the claim is handled entirely through the app to facilitate ease of use.

This is the future of claims, and while we aren’t quite there, there are steps companies can take to get there in the next couple of years.

What can be done?

Instead of adopting new technology and simply adding it to the stack, companies will need to try a different approach in order to fully immerse customers in a strong digital experience. Thoughtfully integrating any new technology is critical to leveraging any and all new capabilities for the good of the customer experience.

Proactivity is key. Companies that put initiatives in place now will see dividends in the long run when it comes to customer satisfaction and retention and will earn a competitive advantage when touchless claims begin to penetrate the market.

Touchless claims will offer customers a more streamlined experience during a traditionally stressful time. It will also help companies reduce operating expenses by automating the processes that can be streamlined and freeing up the workloads of employees so they can focus on the more human elements of customer service.

Touchless claims is the future of claims innovation—and it’s right around the corner.

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Bill Brower // Bill Brower is the Vice President Industry Relations for Solera focused on advancing its insurance, claims, fleet, and automotive business while helping define the future of Solera products and services. Brower is a widely recognized claims leader across the Insurance P&C Claims and Automotive Industry who has more than 30 years of experience leading claims teams with top brand companies including Nationwide Insurance, Liberty Mutual Insurance, LexisNexis Risk Solutions and Solera.

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