Insurtech adoption is streamlining the claims process
Trust in AI is transforming insurance, and consumers are demanding more.
The insurance industry has faced several challenges in recent months as companies have struggled to overcome rapid inflation, The Great Resignation, supply chain issues and the lasting impacts of the COVID-19 pandemic. Like most other industries, insurance call centers have been burdened with high turnover affecting hold times. However, the continuing widespread implementation of artificial intelligence (AI) across the industry has helped solve many of the business challenges faced by insurers.
AI has been incredibly successful among insurers, allowing companies to provide accelerated processing and streamline their workflows. Consumers also prefer to use AI. According to the Solera Innovation Index 2022, 70% of consumers said they would switch insurers for a faster digital claims experience. It’s clear that although AI is already in use, the insurance industry’s technological revolution is just beginning.
Building trust in AI
Trust in AI has soared in recent years as consumers continue to prefer the speed and ease offered by technology. It’s clear that consumers are coming to expect and rely on tech every day, and the insurance industry is no exception: 79% would trust automotive claims powered entirely by AI. In addition, AI is now an integral part of the user journey, and consumers are actively seeking claims and repair providers that put automation first, with 65% of consumers saying they’d prefer to use a repairer using AI to minimize the risk of error in the claims process.
Not only has the industry seen strong demand from consumers when it comes to AI integration, but the use of data and AI has yielded successful results for businesses. As much as 58% of insurers experienced improved business resilience, and 55% saw faster decision-making and an increase in staff productivity because of AI use.
This implementation of AI has allowed insurers to offer seamless experiences through user-friendly applications, making it easy for consumers to file first notice of loss (FNOL) claims reports. Instead of filing a claim manually with a live agent, consumers can file claims virtually through an insurance company’s app. This method is already widely accepted for determining the repair estimate, as 55% of consumers surveyed said they have taken digital pictures of their vehicle damages and submitted them to the insurer to speed the claims process. Automating this workflow can offload the busy work of processing simple claims and allow the process to run more efficiently. Data capabilities can also auto-populate claims forms with information, making processing more efficient and improving accuracy to create a better experience for consumers.
Using AI to work smarter
While AI has taken the auto industry by storm, it’s crucial to note that AI will be most successful not when used as a total replacement for employees but to support and improve data-driven processes. It’s clear that consumers appreciate the ease of AI and digital interactions, but humans still value the personal touch, such as in the case of injuries and other complex claims. As companies implement AI across the industry, the idea of a traditional call center will also transform.
As AI handles mundane tasks, employees can focus on more strategic cases and complex tasks, solving the issue of workforce shortages and allowing career growth through the upskilling of existing employees. The call centers of tomorrow will soon become “quick claims resolution centers,” powering same-day settlements for simple claims where consumers elect to use digital reporting tools allowing the report center to bring simple claims to closure the same day as reported. The true success of AI is when used strategically to allow employees to dedicate time where they are needed most.
With the insurance industry quickly recognizing the value of AI and initiating digital transformation efforts, there will continue to be an investment in AI across the industry as consumers expect an increased digital experience.
According to the Solera 2022 Innovation Index, 100% of insurers plan to invest in AI insurtech software in the next 12 months. Furthermore, 64% of insurers said they are very confident that they will meet their AI objectives within the next 12 months. Whether it’s transforming the FNOL report into a fast and simple digital process, creating a repair estimate in minutes from consumers, consumer-guided images, or redesigning the traditional auto direct repair workflow, AI is revolutionizing how insurers do business. Hang on for a transformation like never before in the insurance claims industry!
Bill Brower is the vice president of industry relations at Solera. Contact him at William.brower@Solera.com.
Related: