Turning Claims Processing Challenges into Benefits

Claims processing has always been a critical aspect of reinsurance, but it comes with inherent complexities.

We’re talking:

Large volumes of data

Intricate reinsurance contracts

Multi-layered claim handling procedures?

Policyholders and insurers demanding faster, more transparent service

Etcetera, etcetera…

These complexities can often lead to delays and high administrative costs and, as reinsurers continue to face pressures to cut costs while maintaining high service levels, the inefficiencies of manual claims processing are becoming more apparent.

BUT, fear not.?

?? The ability to automate claims processes with technology presents an innovative way for reinsurers to overcome the inefficiencies of traditional claims handling.?

?? By integrating AI and RPA into claims workflows, industry players such as Duck Creek Technologies are reporting benefits like improved speed and accuracy, reduced human intervention in routine tasks and the ability for claims teams to focus on high-value activities such as complex case reviews and customer interaction.

However, successful implementation requires a thoughtful approach.?

Integrating technology with existing systems can be challenging, and reinsurers must ensure that their data infrastructure is prepared for automation. Additionally, companies must carefully consider how new tech will work alongside human teams, maintaining a balance between automated efficiency and human expertise where it is most needed.?

I particularly like an article by Risk and Insurance (I’ll link below) about not just the benefits of technology in claims management but also the challenges, because there are many and we must look at it from a realistic and strategic perspective.?

Amongst the challenges of data availability and expertise, the article also stresses the importance of keeping the human element, something I vouch for often as you may know.?

Ultimately, reinsurers will increasingly adopt automation technology that will become ingrained in claims processes. And, as time goes on and things develop further, models will not only handle basic claims but will also be capable of managing more complex and nuanced cases.?

Interested in seeing what technology and platforms are already on the market for claims processes??

I’ve made a comparison cheat sheet, which you can view for free here: https://www.buondrius.com/reinsurance-management-solutions-comparison?

Sources I referred to in this post:

https://www.duckcreek.com/blog/artificial-intelligence-insurance-claims/#:~:text=With%20AI%20claims%2C%20companies%20are,robust%20defense%20against%20fraudulent%20activities.?

https://riskandinsurance.com/three-benefits-and-three-challenges-of-implementing-ai-in-claims-management/#:~:text=For%20auto%20claims%2C%20it%20can,fabricated%20images%20or%20%E2%80%9Cdeepfakes.%E2%80%9D