The insurance industry is a catch-22.
On the one hand, it is a customer-facing landscape, and there is marginal room for error due to the scope of the business. On the other, a vast amount of customer data, usually logged manually by humans, must be accounted for and analyzed.
According to Experian, when data is entered manually, incomplete or missing data makes up 55 percent of errors, and another 32 percent accounts for typos — both mistakes that are easy to miss.The claims handling process defines the relationship between the insurer and the insured, but it is a major operational hurdle if managed incorrectly. And so insurance agents are faced with a dilemma. How can they transmit data in the shortest amount of time with the highest rate of accuracy? Taken a step further, how can they correctly verify claims, including fraudulent ones, under the same pressures?
Artificial intelligence (AI) is emerging as an effective way to both speed up the claims verification process and improve data accuracy.
Moving past the inaccuracies
In a survey from accounting firm EY, global consumers said they trust the insurance industry less than banking, supermarkets, car manufacturing, and online shopping. Much of this distrust stems from claim inaccuracies, which are difficult to avoid when data is input manually. AI technology helps solve this by reducing the amount of manual input.
Despite advances in technology, many claims processes still rely on humans to manage tasks like matching customer information within numerous databases.
Insurance organizations that implement AI to take over this process can match the information in half the time. By automating step one, insurance agents can move on to more customer-oriented tasks, like personalizing the customer experience.And incorrectly typing information isn’t the only source of inaccuracies. Insurance agents struggle with outdated claim systems and poor data quality, factors that make it difficult to properly manage claims. AI technology bypasses these systems to help increase overall accuracy.
Using AI to recommend claims payouts
Claims cycle time is the leading indicator of customer satisfaction, according to a recent J.D. Power & Associates property claims satisfaction study. The study found the average claims cycle can take as little…
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