13 Apr 2021
Three key takeaways on claims automation
The right use of technology can significantly reduce the cycle times for insurance claims and completely transform the entire appraisal experience.
Tractable’s Head of Automotive Jimmy Spears was live with Collision Industry Electronic Commerce Association (CIECA) discussing how this is possible through automation of the claims process.
95% of auto insurance carriers are using or considering using virtual claims processes
LexisNexis Risk Solutions, 2019 Future Claims Study
Here are some key takeaways from the session:
1. Automation doesn’t always mean Artificial Intelligence
There are several technological advances currently transforming the appraisal experience. The top three trends geared towards bringing more automation are Virtual, Guided, and Automated Estimating. However, they are often lumped together and used interchangeably when they are concurrent trends that are evolving in parallel
Virtual estimating is mostly human-driven and carried out online. This can reduce the time it takes to write an estimate to just 10 minutes, taking the daily number completed from around 6 to up to 25. The thing to remember here is that virtual estimating does not necessarily have anything to do with AI, but can still be used alongside AI solutions.
Guided Estimating is the combination of machine and human intervention, while Automated Estimating is relying mostly on technology. Of course, the end goal is to be able to trust the machine to do the majority of the heavy lifting, freeing up human expertise for where it’s needed most.
2. Adopting a third-party AI solution will not eliminate your ‘secret sauce’
There is a concern among some insurers that by adopting an AI model for the claims process, they will lose what makes them stand out. Their ‘secret sauce’ is what differentiates them from their competitors and automation risks making everyone the same.
However, this doesn’t have to be the case. An AI solution within claims management should not be a simple one-size-fits-all. It should be designed to be calibrated with your workflows, to regional and local levels.
Adopting an AI solution should be a partnership, one that requires an intense understanding of how your company approaches certain problems and makes decisions. Plus, the right solution doesn’t negate human expertise. It augments it to allow them to focus on the claims that actually need their time and input.
3. Claims automation vastly improves the customer experience
There’s a lot of talk about Millennials being responsible for digital transformation within industries and the high expectation on brands to provide a seamless customer experience.
However, when we think about the biggest tech and e-commerce businesses in the world, it wasn’t a single age group that led to their success. It was all of them, regardless of how ‘digitally savvy’ they were.
There is no ‘new breed of customer’, we are simply experiencing a whole new era of customer experience. Consumers want to know that their interaction with your company will be quick and require little effort on their part. This means personalization, fewer touchpoints, and a near-instant response time.
Automating the claims process massively reduces the cycle times, meaning the policyholder can expect fewer delays and a faster turnaround to get their car back. Therefore the customer experience is vastly improved compared to more traditional processes.
To learn more about how the technology works and to see it in action, book a demo with the team today.