How does Insurtech impact claims management costs?

In general, artificial intelligence can reduce the cost of human resources and increase the speed and, in some cases, the accuracy of actions. The use of artificial intelligence in insuretech can be manifested in the following cases: 1- Detection of fraud 2- Authentication 3- Convert photo to text 4- Discovering the relationship between data 5- Detection of physical damage 6- Determining the amount of damage 7- Predicting the amount of damage 8- Prediction of damage 9- Providing support with chatbot 10- Detecting lies from sound 11- Convert audio to text and vice versa 12- IVR phone 13- Identifying good and bad customers 14- Customer rating 15- Presenting suggestions for damage control

In Simplifai we had helped many insurance companies and TPAs in claims registration automatically through AI automation, this had allowed them to grow beyond their projection and had eliminated cost of growth significantly (as each person can handle more claims, and companies can handle more claims with the same staff).

Insurtech has a significant impact on claims management costs by streamlining processes and improving efficiency. - The use of AI and data analytics can automate claims processing, reducing the need for manual intervention. - This decreases administrative expenses and speeds up claim settlements. - In the case of Lemonade, a digital insurtech platform, their AI-driven claims processing system handles simple claims, such as a stolen item, within seconds. - This not only reduces operational costs but also enhances the customer experience. - By automating routine tasks, insurtech reduces the need for a large claims management workforce, saving on labor expenses while improving the quality of service.

Insuretechs are helping insurers predict and prevent losses; examples include the use of telematics to collect information about a driver’s mileage and habits, and the risk scoring of property, people, and drivers. In terms of managing the claims process, insurers can use aerial imagery to estimate losses at a low cost and reduce the time claims adjusters spend assessing claims in person. Large Insurnace carriers can use automation or repetitive workflows to pay out a large number of claims with minimal human intervention.

Insurtechs can experiment with new technologies more effectively than traditional insurers because they are smaller, more agile, and built around innovation. They attract tech-savvy employees and use modern, flexible infrastructure, allowing quick adoption and iteration of new solutions. Their focus on customer experience and also drive continuous improvement and innovation, enabling them to stay ahead in technological advancements. This leads to insurance companies saving resources on R&D and getting a shorter time to market.

With the rise and evolution of telematics and IoT, the ability to integrate an app within mobile devices enables us to retrieve data seamlessly. Much like how parametric insurance operates, these data can be seamlessly integrated with predefined smart contracts. Leveraging blockchain technology allows for streamlined and automated claims processing.

Data has become an invaluable asset in today's world that empowers companies to make more informed decisions, optimize operations, and enhance customer experiences. By leveraging advanced analytics, insurers can accurately assess risk, streamline claims processing, and detect fraud with unprecedented efficiency. As well, real-time data collection and analysis provide insurers with the agility to respond quickly to market changes and emerging trends. This means that carriers are not only improving their bottom line but also building stronger, more resilient relationships with their clients. Knowledge truly is power.

Our company purposefully builds software around helping our insurance brokers and agencies to track and manage their claims. Especially when claim sums are larger, customers tend to feel anxious and service providers can use insurtech tools and systems to make sure that customers feel they are well taken care of, showing value to their services. Insurtech tools can provide visual management, and assist in triggering timely follow ups on claims that are past due and aging for processing or is lacking information from the customer or insurer to proceed further.

There is 2 aspects of improving customer engagement through the use of AI. First, when the majority of administrative work of a customer facing role is automated using AI automation, it will be feasible to spend more time and be more patient in front of the customer. Second, the turn around time of a customer inquiry will be shortened significantly (from days, to minutes), it will create a much more pleasant customer experience.

I say this all the time, beneficiaries are going to talk about your claim process. The question is: what will they say? Will they describe it as a frustrating ordeal they're relieved to be done with, or will they tell everyone they know about how surprisingly easy it was, and recommend your services? A streamlined process that gives the beneficiary easy access to information and updates will always foster loyalty.

One of the more underrated benefits of working with an insurtech is the ability to take the years of experience and knowledge from your team and build that into your process. According to the U.S. Bureau of Labor Statistics, nearly 400,000 employees are expected to retire out of the insurance industry over the next few years. That number represents a huge amount of knowledge leaving the industry. Our company strives to provide carriers with the ability to take that knowledge and leverage it to build a process where it can be utilized and passed on for years to come.

It's critical to know the risks involved when implementing insurtech solutions in your processes. One must evaluate all risks and take mitigating action to successfully implement new solutions. Say you're implementing a machine learning algorithm to automatically adjust claims. There is a high chance that this may not be accurate in some cases which may result in higher losses or lower customer satisfaction. To limit the risk you may want to add a layer of manual verification for a period of time. It is also important to reassure those who are already performing these roles that the insurtech solution being implemented will not affect their employability, rather it'll either help the organisation grow or address expected growth.

It's crucial for an insurer to have alignment internally when implementing any kind of new process. This why our platform follows a crawl, walk, run methodology to implementation. This allows carriers to move one step at a time and avoid overloading staff with new information.

This mindset, combined with less regulatory burden compared to traditional insurers, allows insuretchs to experiment more freely and implement cutting-edge technologies quickly. The smaller size also means insurtechs can adapt rapidly to market changes and customer needs, staying ahead in the competitive landscape.