Page 24 - Insurance Times April 2020

1. Artificial Intelligence can build machines to process data and learn on their own,
AI has transformed the insurance industry in a short period. without our constant supervision."
The technology has reduced labour costs and increased the
efficiency of claims processing. Some Insurers have started Machine learning is capable of not only improving claims
looking at AI-based solutions to retain existing and attract processing but also automating it. When claim files are in
new customers. This can be achieved by offering the best digital form and accessible via the cloud, they can be
possible services that will delight the customers across analysedby using pre-programmed algorithms which result
channels. in improving processing speed and accuracy. This automated
review can also be used for policy administration and risk
Cognitive computing, along with Artificial Intelligence and assessment.
neural networks, has started impacting areas across the
insurance value chain and, in particular, claims management While automation and machine learning have been in
with help of FNOL (First Notice of Loss). In the case of Motor practice in the insurance industry for years, only simple
insurance, the insured or driver informs the insurer of an processes that do not require high decision-making skills such
accident that occurred involving a vehicle. Once the claim as data entry, standard customer communications, and
is submitted, Chabot will indicate that a claims adjuster will compliancechecks etc used to be within the ambit of
speak with the customer. It can also list nearest automation.
authorisedauto workshops where the customer can get an
estimate before repairing the damaged car. In some cases By virtue of the potential of the intelligent systems, the
FNOL is complete in minutes and without the help of a claims insurance industry hasstarted exploring the automation
adjuster. perspectives of much more complex processes such as
property valuation, personalized customer interactions,
According to Ari Libarikian, senior partner at McKinsey & receiving customer insights, fraud detection and prevention,
Company "Artificial intelligence will fundamentally disrupt and claim management - verification, processing and final
and transform insurance underwriting." Insurance experts settlement.
believe that Artificial intelligence will soon deliver more
accurate risk assessments, better customer experiences and Automated self-services enabled by insurance technologies
substantial cost benefits for insurance companies. and the resultant improved customer experience in
Insurance claim settlement are becoming a trend in the
2. Machine Learning & Automation industry. While taking a self-service approach may sound
Insurance technology trends in 2020 will include the counter-intuitive, the customer provides video and images
overlapping of various technologies with a common at First Notice of Loss (FNOL) and is in control of the claims
objective- improving accuracy. According to Forbes, process.
"Machine learning is technically a branch of AI, but it is more
specific … Machine learning is based on the idea that we When a good portion of the minor claims are handled and

24 The Insurance Times, April 2020