With virtual payment solutions, claims payments are received quickly — typically, eight to 10 days sooner than check payments. Virtual payment solutions also help protect your company from the risk of payment fraud. Seventy-four percent of U.S. organizations were the target of check fraud last year, according to a recent survey of finance and treasury professionals. By moving away from paper-based payment to a digital solution, insurance companies can avoid financial exposure and reduce payment risk.

Artificial intelligence (AI) is showing strong potential to reshape processes for insurance claims, distribution, underwriting and pricing.

A McKinsey report shows tools such as computer vision and natural-language processing can:

Create a personal risk profile for policyholders by analyzing their public online photo galleries, such as their Facebook or Instagram feeds.
Act on customer service requests without the use of human intervention.
Use emotional intelligence capabilities to sense when a customer is unhappy and immediately connect the policyholder to a human agent.

The impact for insurers is significant: AI has the potential to eliminate fraudulent claims, which cost the industry $40 billion per year, according to the FBI. Common causes of fraudulent claims include embezzlement of insurance premiums, workers' compensation fraud and disaster fraud schemes. Meanwhile, 74% of consumers say they would be open to computer-generated insurance advice, which offers the potential for personalized service at reduced cost.

Telematics is gaining a strong foothold in the insurance industry, especially when it comes to auto insurance.

Globally, growth in the use of telematics in the automotive industry is expected to reach $17 billion by 2021, with some national auto insurers offering discounts to policyholders who allow digital devices to track their driving habits and demonstrate safe driving habits.

Special Reports /

Taking a digital approach to claims processing

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