Automation Use Cases in Insurance

CIO Review APAC | Monday, June 07, 2021

Customers and insurers can use a self-service portal to obtain answers to queries, perform business (transactions, orders, make a claim, pay bills), check on status, submit support requests, and download resources.

FREMONT, CA: Insurers are expected to quickly launch pilots and expand them out across their businesses if the pilots are successful, as competitors do. To achieve this, insurers must employ the most cutting-edge digital technologies to maintain agility in their data management and other processes.

Because the insurance sector is full of bottlenecks and manual procedures, including claims processing, underwriting, policy administration, and customer care. According to research, 25 percent of the sector will be automated by 2025 due to artificial intelligence and machine learning techniques. Insurers who want to find processes that can be handled autonomously can use process mining technologies. Some tangible automation use cases include:

Claims processing

Review, inquiry, adjustment, remittance, or denial of the claim are all layers in the claims processing process. Insurers must process a high volume of papers for each layer, which can be automated using document automation systems. Insurers can use document automation to extract data from documents, detect fraudulent claims, and check claims according to policies. One firm, for example, utilizes artificial intelligence to understand car accident photographs and estimate repair costs in real-time. As a result, claims can be resolved more quickly, and insurers can respond to incidents up to ten times faster.

Claim fraud detection

Insurers send data from the claimant's story into predictive analytics tools, which then employ text analytics to detect fraudulent claims based on business regulations.

Risk Prediction

Insurers can gather information about people's past health records to calculate a risk score for each person based on lab testing, biometric data, claims data, and patient-generated health data, and then ask for a price based on the risk score.

Omnichannel

Customers and insurers can use a self-service portal to obtain answers to queries, perform business (transactions, orders, make a claim, pay bills), check on status, submit support requests, and download resources.

Smart Contracts

InsurTech companies that use blockchain technology improve risk-sharing models while also providing individuals with more customized and inexpensive insurance solutions. Companies aim to replace conventional insurance models with mutual markets based on smart contracts. Their goal is to reduce insurance costs and eliminate the need for larger insurance companies by allowing consumers to share risk across greater populations.

See Also: Top 10 Insurance Technology Solutions Companies - 2021

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