Will a robot take my job?

The relationship between technology and manual labor has caused disruption in the workplace throughout human history. Innovation is spawned out of a basic need to do things faster, safer, better and cheaper. Therefore, there is really nothing ‘new’ in the current state of our insurance claim industry. Evolution is ongoing, and we are seeing application of new technologies that will bring a better claim experience to the consumer/policyholder.

Insurance claims is a microcosm of the greater economy. Our policyholders are consumers for many other businesses. The way they interact, communicate and trade with them is changing.?Consumer expectations as to how they relate with big corporations is changing. No doubt Costco’s very customer friendly return policy and Amazon’s ability to deliver almost anything immediately creates perceptions in the minds of our mutual customers about the level of service they expect. Just about everything is about getting the customer what they need faster and cheaper. This has not slowed much even as our economy is challenged by supply chain disruptions and rising inflationary pressures.

It is imperative upon those of us who deliver the product of claim service to be ?aware of the environment we are operating in and the changes that are affecting us. Below are some key considerations as we continue to implement technology into the claim process.

Communications.

We are still in the early stages of our transition from landlines to mobile phones. We have come a long way for sure, but there are sill new tools coming?that will impact the way we interact with our customers. It is really an insult to your mobile device to call it a “phone”. Yes, you can have telephone conversations, but they are becoming less and less the reason to have one of these handheld computers. Our customers are getting quite adept at all forms of communication via these devices. Every day they get texts regarding an upcoming doctor’s appointment or an expected delivery time of an important package. Restaurants are using QR codes for customer to access their menus and place orders. Other businesses have learned ways to improve relationships with their customers via the phone: websites, links in texts, e-mails, etc…Therefore, customers are expecting us to provide similar levels of service.

We need to become equally well versed in the use of mobile applications and communication options. Perhaps we do not want to send long legal letters via a text, but certainly for confirmations and reminders this tool is a great way to communicate and frequently the preferred method of communication.

Without a doubt employing technology to automate some communication is imperative. Updates and confirmations are perfect uses of the many texting tools that are out there. We will discuss the functionality of chatbots below that can resolve many common questions without the need for staff involvement.

There are applications even more impactful that communications. The camera capabilities allow us to capture imagines and videos that previously we would have to invest time and energy to see. Via mobile devices, we have access to photographs and videos that aid us in resolving claims at a fraction of the time that was needed previously.

Mobile applications and websites can more readily serve as conduit to the claim professional and key business partners, such as, contractors, lawyers, and repair facilities. Creating a seamless link for all of the key parties our customer interacts with to resolve their claim will become areas of greater focus.?

There remains a need for human interaction. People still want an easy way to exit the “system” and connect with a human. With more of the routine questions answered automatically, more voice-to-voice claim communications will be on the more complex issues. Our communication skills need to keep pace with the changing demands and application of new tools.

Robotics.

Science fiction fans have long awaited a world ruled by robots! Perhaps some of the premonitions of the 2112 Space Odyssey movie are coming to fruition!

Robotics in general is far more prevalent than we might think. One only needs to do a quick google search to find a Boston Dynamic video of robots involved in manufacturing, warehouse management, search & rescue and even firearms usage.

Robotics have proved very valuable in our industry as well. Chatbots are being applied to answering basic questions. They have advanced in some areas to the point that it is often hard to know that we’re interacting with a machine. Voice and tone recognition tools are helping to anticipate what the customer is trying to convey to get them the best solution in the shortest period of time. Robotics have additional application in our industry through Robotic Process Automation or RPAs. RPAs have widespread application for tasks?that are routine, frequent and repetitive. If information?can be provided in a consistent manner, and if the same actions are taken on that information, an RPA is a very effective way to?eliminate manual labor.

Robotics and machine learning (ML) together make many of the routine tasks automated and are gaining traction in the claim process. For example, AI is learning to create estimates of damages. We are seeing huge strides in the AI applied to photographs to begin, and in many cases complete, a reliable repair estimate. This technology has application in automobile claims, as well as homeowner claims.

There is certainly a lot of activity in our industry related to automation and technology. But the point of my message is not necessarily about what technology tools are available?and what they can do, rather what to consider in the way we employ technology. Which leads me to the next key consideration.

Work elimination versus work transfer.

Probably one the best advances for the claim professional was the ability to share claims files anywhere with anyone! Rather than one person having a paper file, instantaneously, documents can be shared with a claim professional who specializes in a specific area so that work can be done simultaneously. For example, assignments can be made immediately to have property inspected and damages estimated while someone else is working with injured parties. While we take this for granted now, there was a time when there was not a central depository or all the claim file information. We saw the growth in specialization of claim tasks because of these technologies.

There are two types of work transfer: internal transfer and external transfer. Internal work transfer is like what was mentioned above, claim tasks are segmented and assigned to several claims people simultaneously. The work still must be ?completed, just by someone else!

External work transfer is shifting the burden to someone other than the claim professional. This could be online claim reporting where a customer, or claimant, reports a loss electronically (EFNOL). Again, the work must be done, data has to be entered, but the labor is shifted to someone other than the claims professional. This will free up claim professionals to focus on the critical thought aspects of claim resolution.

Transferring work led to greater specialization; however, many claim functions became mere tasks. Technology will eliminate many routine aspects of claim handling, leaving the more complex aspects of the claim to the claim professional. Which leads to the need to develop critical thinking skills versus data entry skills. Any application of technology now should be measured by how much work it eliminates versus does it merely transfer the work to someone.

This concept of work elimination is a key component of the future of claim technology. Technology tools have advanced to where artificial intelligence applied to photographs can generate a viable repair estimate without the need for the claim professional to key in obvious data. And this is just the beginning of how we can employ technology to eliminate work for the claim professional.

Programming systems versus?training claim professionals.

Not that long ago, claims training involved the jury system, tort laws, investigations, forms of evidence and?objective defense analysis. The technology training consisted of getting new “log note paper” when you were running low!! Out of necessity, the training began to focus more on the data entry aspects of the job. With finite amounts of time available for training, claim skills received less time as more of the compliance and data entry requirements took on more importance. The cycle of the claims training will return to a focus on general knowledge and skills, with less time dedicated to data entry.

What does this mean to the claim professional? A large part of starting any new claim is very mechanized and laden with data fields to be completed. Much of the ‘data entry’ type work will be done by other means, either a work transfer to the customer, such as, mobile loss reporting, or by use of automation. Based upon commonalities with claims some will be ‘straight through’, or ‘little or no touch’. The system will audit documentation and if certain qualifications are met, claims?will be paid without human intervention. Therefore, the claim professional will spend a greater percentage of their time with the more complex claims. Thus, claim training will focus more on legal concepts, investigations, and effective claim settlement.

Systems will be programmed; employees will be trained!?

Will a Robot take my job?????????????????????????????????????????????????????????????

The answer is totally up to the individual. Yes, many aspects of the job are being automated. Those that adapt and learn to be effective with the tools will be the claim professionals and leaders of tomorrow. Those that pine away for the days of field work and face to face negotiations will likely find themselves in less demand.

Being the master of the technology is the key to success. Getting comfortable with the tools and then driving them for greater accuracy and effectiveness will dictate how these tools are used in the future. The pages are still fairly blank and parameters ready to be drawn. What we set out to accomplish may change as we continue to learn from technology. It would be a bit na?ve to think that what we are doing now is the best use of the technological tools. We still have much to learn. ?

The benefit of experience is having seen our environment absorb and respond to new technologies over the decades. It is more accurate to say that we are evolving rather than amid a technology revolution. But technologies are coming faster and faster, customer expectations are rising, and our industry must deal with disrupters.

Will a robot take your job? Only if you cannot offer more value than the robot can.?