Page 22 - Insurance Times April 2022

Automated Underwriting Y Detection of claims fraud through data
The information provided by the clients is relied upon for analytics
assessment of the extent of risk. However, verifying the The volume of data print and the interconnectivity of
reliability of the data provided is challenging. They may make the touchpoint, be it social platforms or the servicing
use of many sources such as location information, social units, helps a lot in identifying the inconsistencies and in
media, and many more for an accurate risk assessment. But detecting the fraud etc.
this process involving the collection and analysis of large Y Predicting patterns of claim volume
volumes of data from many sources can be extremely time- A better data crunching helps a lot in developing model
consuming and exhausting.
for the trend analysis and in better planning for the future.
AI-powered bots capable of language processing and Technology is rebuilding the insurance industry and companies
sentiment analysis can be brought into play to gather
which have been early in their implementation can experience
information from various sources which can be used to a significant drop in processing time and cost, in addition to a
perform screening for each customer and analyse it to
decent increase in service quality. AI in the insurance sector
generate accurate analytics. By effectively automatize the has to offer several promising technology-enabled solutions.
operation by the implementation of Artificial Intelligence and
Machine Learning, insurers can save a lot of time and Automated claim support
resources put in the tedious questioning and surveying during
the underwriting process. According to the experts, it is estimated that by 2025, 95% of
all the customers' interaction will be done by chatbots. Driven
Claims process - The most important part by Artificial Intelligence, claims chatbot can assess the claim
and pass it through a fraud detection algorithm before
of customer experience
instructing the bank to reimburse. Automated claim support
With the utilisation of Artificial Intelligence within the system powered by AI can help detect fraudulent claims along
Insurance Industry, the claims management process has with human errors and resultant inaccuracies by examining
become faster, better, and with fewer errors. Claims process the data patterns in claim reports. Developing such a flowing
is the most daunting task from a consumer’s perspective and process will help clients file their claims without much difficulty
insurers have started reaping the benefits of much better and help facilitate instant customer assistance.
claims management by making use of the technology in the
following ways: Alternatively, to further minimise the time for claim
Y Facilitate a real-time Q and A service settlements, the workflow engine is employed. A ‘workflow’
Almost all the leading insurance companies have got their is usually defined as ‘flow of work’, that includes a collection
apps available and through these apps or even through of tasks and resources which are essential for the expected
the chatbox or customer connect, they can get relevant outcome, whereas, a ‘workflow engine’ is mainly the
information should there be a claim. technology that orchestrates the various parts of a workflow,
including human and machine resources. Usually, most claims
Y Pre-assess claims and evaluate the damage
In case of a minor damage/claim the insurance
companies are encouraging customers to use the app
facility and report the damage through photographs/
video. The back office at the company side is in a position
to assess the claim and give an offer to the customer to
get his / her vehicle repaired from that offered amount.
Only in case, the customer does not accept the offer, he/
she has to go through the normal route of claim
settlement through garages. This new facility is doing
well in Indian market condition. Even it got the boost
from regulatory changes which removed the mandate
of hiring the services of a qualified surveyor for the claim
up to Rs 50k.

22 The Insurance Times, April 2022