IE COMMENT;
The potential for AI, or rather automated data processing software, to streamline, triage and settle claims much faster than humans is huge. But that progress comes with downsides. It may be the case that many smaller claims are settled too easily, thus increasing fraud attempts as sharper people catch on that sub £1500 claims with two blurry phone pics are being paid out within a week. Other issues are the evolution of photo and video editing software, use of physical mask disguises (see how good they are getting here ) and sophisticated or organised gang/farming of fake individual ID records.
If corruption and/or incompetence reaches a certain level within UK public sector departments responsible for driving licences, NI numbers, passports, CRB, Home Office etc then how can the AI system trust the data being fed in? So you see it isn’t all easy-peasy, there are challenges ahead. Here’s some comment from Gallagher Bassett on chatbots in particular, which still have some way to go in terms of understanding the nuances of human conversation;
AI chatbots and generative AI are proving instrumental in optimising customer service and claims processing, according to insurers worldwide who are prioritising the deployment of these technologies in a complex market. A recent survey by Gallagher Bassett, as part of The Carrier Perspective: 2024 Claims Insights report, reveals that 83% of UK insurers either have implemented, or are currently in the process of implementing, AI chatbots or generative AI to support better claims resolutions.
With the UK experiencing seven months of double-digit inflation between September 2022 and March 2023, insurers face a challenge in managing claims costs. Sole reliance on historical claims data is no longer a viable cost forecasting solution due to the impact of social, economic, and geopolitical factors in shaping claims costs.
AI OFFERS BENEFITS
“In response to these economic challenges, Gallagher Bassett is prioritising the use of AI and data analytics to make precise predictions and informed decisions in this rapidly changing environment,” said John Fearn, Chief Operating Officer, Gallagher Bassett UK.
“The integration of AI promises substantial benefits across the insurance sector.”
In the UK, 93% of insurers anticipate improved speed and operational efficiency, 73% foresee reduced costs, and 70% expect enhanced customer service. More than half (55%) of insurers predict better claim outcomes overall due to AI adoption.
“At Gallagher Bassett, we are exploring the benefits AI-enabled decision-support tools can provide to our people across various stages of the claims process, including intake and triage, claims assignment, investigation, and reserving,” said John.
“These tools are designed to provide end-to-end visibility, streamline operations, and improve overall outcomes.”
CHALLENGES
Despite these benefits, the integration of AI does pose a few challenges. In the UK, 33% of insurers are concerned about seamless AI integration into business operations, 28% about compliance, and 20% about data privacy and security. To address these, the UK government has established an outcome-driven framework for AI regulation, focusing on data privacy and ease of use while delaying formal legislation for now.
AI is also pivotal in disaster assessment and claims processing. Gallagher Bassett’s global survey shows that 37% of insurers are incorporating new technologies for assessing disasters and resolving claims, a figure slightly higher in the UK at 38%. Best practices include the use of satellite imagery, 3D technology, and predictive modelling to analyse large datasets.
By combining AI-enabled tools with expert human judgement, insurers can aim to enhance efficiency, reduce costs, and deliver exceptional outcomes. Gallagher Bassett’s integration of AI into claims processing underscores our dedication to innovation and excellence. As insurers navigate the complexities of the modern market, a key competitive advantage is for insurers who partner with providers who provide superior service while embracing the transformative potential of AI.
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