6 Advantages of Insurance Claims Automation
The insurance claim process has traditionally been a manual process requiring a lot of validations, approvals, follow-ups, and constant back-and-forth communication. This causes the whole process to be long, tiring, and very cumbersome.
However, with the introduction of new-age AI technologies, we can quickly mitigate these challenges and make the overall process much faster and more efficient.
This blog digs deeper into why automating your claims process makes sense and its advantages.
Let’s dive in.
Why does implementing AI make sense in the insurance claims process?
We are currently in an era where many industries are automating their processes using AI for improved efficiency, reduced costs, and increased speed.
The automotive insurance industry is no exception since it is experiencing some of the most impactful changes.
The introduction of new-age AI technologies is revolutionizing the claims processing framework and facilitating faster growth thanks to its capabilities.
Let’s check out some of the advantages of using AI in the auto insurance claims process.
Better customer experience
Historically, insurance companies have rarely had to interact with their customers directly. However, human interactions become crucial when dealing with cases involving processing claims.
Policyholders expect a seamless experience with 100% transparency and maximum efficiency during such cases.
- Using AI in the claims process enables companies to provide a seamless end-to-end experience for policyholders. AI can help ease claim submissions, map policies based on predictions, and create personalized policies based on the customer’s browsing patterns.
- With the right combination of AI-powered apps, chatbots, and other engagement tools, insurance companies can quickly provide quick service, diligent follow-ups, and a personalized experience.
This combination of AI-powered tools gives your customers a sense of control and transparency, reducing uncertainty and delivering an overall positive experience during the claims process.
Reduced costs
Using AI to replicate repeatable processes will result in fewer human resources being used for your work, reducing the effort needed to complete specific tasks and, hence, reducing the overall cost of your process.
- Robotic Process Automation (RPA) can be implemented to use AI to emulate rule-based processes. This can help automate tasks such as claim verification, error tracking, etc., which helps streamline your workflow and save you time and money.
- As we mentioned earlier, AI can also improve customer experience, which adds novelty to your business, thereby increasing revenue and profits in the long run.
- AI can also create new business models by analyzing consumer behavior and identifying opportunities to expand your business further.
Higher lead conversion
Using AI to make your business processes more efficient helps you cut the time taken on each task.
For example, implementing AI to process claims allows you to increase the speed of your workflow, which will, in turn, result in higher lead conversion since customers will not have to spend time receiving evaluations or processing their claims.
Faster claims processing
Whether it is a new customer application, auditing claims, or processing them, AI can help you complete these tasks faster with more efficiency.
- Automating your claims process reduces the chance of errors and false data entry, reducing the time to evaluate and process claims.
- Using AI to automate back-office tasks (which have traditionally been manual) allows you to reduce the time taken to record data, evaluate them, and quickly process claims while minimizing the chances of human error.
Optimizing resources
Using AI to automate repetitive processes allows you to allocate your resources to complex tasks that require a more hands-on approach.
- Automation can free up claim handlers and reduce manual labor. This reduces friction from unnecessary touchpoints, resulting in greater customer satisfaction.
- AI can also identify opportunities to optimize processes, reduce losses, and empower employees.
Fraud detection
With the right AI tools, you can implement checks to avoid fraud and losing money from false claims. For example, Inspektlabs, a popular AI-based damage assessment solution, allows you to detect fraud by
- Seamlessly identify old vs. new damage so customers don’t report false/existing damages to make more money.
- Avoid vehicle switching to ensure the report generated is based on one vehicle, not multiple vehicles with various damages.
- It also captures essential metadata such as location, IP address, etc., to ensure the customer is not trying to game the system to make an extra buck with a fake claim.
Conclusion
While the insurance claims process in the automotive industry has traditionally been manual and time-consuming, the evolution of artificial intelligence in today’s era has allowed us to make the whole process a lot more efficient.
Some benefits of AI in your claims process include better consumer satisfaction, reduced costs, higher lead conversion, faster processing, optimizing resources, and fraud detection.
In today’s era, where every industry uses AI to make their work more efficient, it won’t be long before insurance companies implement these tools to make their overall work more efficient, cost-effective, and risk-proof to drive more profits and deliver a better experience.