InsurTech – Faster, Simpler, and Smarter Insurance Process
The insurance industry these days not only uses technology, but it also has its own technology category InsurTech, which focuses on four core areas: insurance personalization, insurance sales and operation management, insurance approval, and insurance claims. We are especially excited to talk about the last topic today. Let’s see what the future of insurance claims looks like!
Insurance shopping platforms like Insurify, CoverHound, and Friendsurance are actively redefining distribution models. While clients can get more specific about what they are looking for, these marketplaces help insurers cut distribution costs and, at the same time, bring in even more well-targeted leads.
A US start-up called Lemonade has developed an incredibly easy and fast insurance claim process using chatbot. When you want to initiate a claim, all you have to do is talk to Jim, the chatbot, in Lemonade’s mobile application. Jim will ask for more details with some simple questions, invite you to submit a video about the story, then process all the input data with AI technology to approve the claim. This overall process normally takes about three minutes, thanks to Jim’s ability to decide the claim within seconds.
Japanese insurer Tokio Marine Holdings is also eyeing AI technology to speed up their auto insurance claim process. By 2020, the company stated, Tokio Marine will launch an application that collects information about an accident’s location and allows users to upload their vehicle’s photos into the system where AI will analyse the data along with the user’s claim history and car information. Compensation can be paid within 12 hours – a major improvement to the current claim process that usually takes 2-3 weeks.
In Thailand, we have Claim Di, whose idea is to expedite auto claims by cutting the waiting time needed for insurance adjusters. If there is a road accident involving two parties, they can share their information through the Claim Di app by synchronising the apps on their devices and taking photos of the overall damage to the vehicles. When the system receives such data, it issues the claim document immediately. The wait is over before it even starts, and everyone saves time!
Shift Technology meanwhile offers end-to-end insurance to fraud analysts with a solution that goes beyond traditional claim scoring based on probability analysis. Additionally, it provides business users with actionable analytics indicating if a claim looks suspicious. According to Shift Technology, their software tool has a 250% better fraud identification rate than the market average.
These examples are just the tip of the iceberg. Technology is changing our lives in so many ways, from the way we shop to the way we bank to the way we work, so it shouldn’t be a surprise to see it providing a much more convenient insurance claim process. We just have to wait to see what new solutions will be developed to satisfy our digital-era expectations.