Some thoughts on AI claims, from Pete Allchorne and Jo Folan of the Strategic Advisory team at DAC Beachcroft’s claims division, CSG
We hear a great deal about how AI (in its various forms) is going to be deployed to take jobs and replace humans. Exactly which jobs will be disrupted by AI, and who should be concerned will inevitably develop over time, but these unknowns temper the way in which AI is welcomed into (or opposed by) the workplace.
Insurers are embracing AI. The industry understands the extent of the benefits that AI can provide and is at the forefront of testing use cases. So, given the proactive adoption by the industry, should claims handlers be concerned about their jobs? The simple answer is no.
Last year, we conducted research with leading insurers across the claims market and produced a thought leadership piece: From Automation to Intelligence – the impact and potential of AI in the claims process. This article examines the common themes that insurers shared with us about how AI will be incorporated into claims handling.
AI as an assistant, not a replacement
AI, when properly used, is a tool that can really enhance the way you work, improve your productivity and free up your time to deal with the more interesting aspects of the role. It strips out the more mundane tasks and supports decision making – and this appears to be what insurers are aiming at for their claims handlers. It should be viewed as an assistant for the claims handler to use, not a replacement for them.
Mundane tasks can be effectively delegated to AI. Tasks that could potentially take hours out of a claims handler’s day (or even days out of their week) can be completed by AI in a fraction of the time.
As a tool, AI can provide a great deal of support to claims handlers. Often, handlers are faced with vast amounts of documents to support claims, often sent in piecemeal and potentially involving huge amounts of information, much of which is repeated unnecessarily across multiple documents. Al can review and summarise that information in seconds.
AI can also provide support in reviewing claims for settlement. It can supply the handler guides as to what should be considered, explanations as to why various points are relevant and provide a summary of the arguments that need to be considered. Used correctly, it can be a really helpful assistant to claims handlers, supporting them in their role.
Use of AI to enhance the customer experience
AI can also make it easier for claims handlers to better assist customers.
Many customer calls are simple but time consuming. Some insurers are using chatbots as a first response. If the chatbot can answer the customer’s questions, claims handlers’ time is freed up to deal with the more challenging customer questions and concerns that require human intervention.
When a claims handler is required, AI can help highlight the key information required for an individual claim to the claims handler, so that the customer does not have to repeat themselves and become frustrated. The claims handler then has all the relevant information at their fingertips to be able to swiftly move on to dealing with the reason for the customer’s call.
One thing a claims handler can do that no AI can is demonstrate sensitivity and empathy. At the point when a customer is making a claim, they tend to be at their most vulnerable – having suffered injuries or losses. What they need is empathy, care and support – the “human touch”. AI, however good it gets, cannot replace that.
The future is bright
The point of claim is often referred to as ‘the moment of truth’ for insurance. After all, it is, by its very nature, a service that assists people when they are in need. Because of this, claims handlers will remain central to the claims process. What AI can do is free them from the many mundane, repetitive and time-consuming tasks they currently deal with so that they can really focus on the key aspects of making effective decisions and supporting the customer in their hour of need. Not only does this free up handlers to focus on the more interesting elements of their role, it should also improve the customer journey by making handlers more available, informed and engaged.
Rather than replacing claims handlers, AI will make their jobs more interesting, less repetitive and more about helping customers. AI will be the assistant they have always wanted; the one that takes on the tedious tasks and allows them to focus on the part of their jobs that they enjoy the most.
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