October 30, 2017
The Insurer of the Future – Part 3
by Alan Walker
As the abilities of cognitive/AI systems surpass those of humans, claims personnel will no longer be required by the Insurer of the Future.
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 U.S. insurer, says it has used AI to complete the entire claims process in less than three seconds.
- Fukoku Life, in Japan, expects 30% efficiency gains from replacing employees with an artificial intelligence system that can calculate payouts to policyholders.
See also: ‘Gig Economy’ Comes to Claims Handling
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 by 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, body shops and online retailers, to return the policyholder to the 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 on, 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.