Insurance companies across the world face the challenge of balancing between their bottom line and at the same time enhancing customer satisfaction. Traditionally, insurance companies were heavily dependent on the information gathered by investigators and those provided by the claimants. The new-age digital technologies like Machine Learning(ML), Internet of Things(IoT), and Robotic Process Automation (RPA) have deeply changed the way we collect and analyze the data, as well as predict future events thereby enhancing customer experience and providing better business operations. In today’s world, only a few companies use digital technologies to claim operations. Companies need to adopt digital and AI technologies to survive in today’s digital era.
Insurers face certain challenges in the claim management process. These include finding the inefficiencies in the claim registration process which is a repetitive and data-intensive work as well as improving the allocation inefficiencies of the claim adjuster. Also, a significant amount of time is lost in the collection and consolidation of the data. Machine Learning and AI can help companies to drastically reduce the time required in the collection of data. In addition to it, Machine Learning and AI help in the detection of frauds and eliminating those registration processes which results in delayed claims.
So the insurance companies need to adapt to these latest digital technologies to stand out themselves from the competition. The adoption of these newer technologies however has to align with their operations model. Thus depending upon the short and long term goals of the organization, they need to implement a mix of these solutions to get the optimum results. These include the use of :
- Robotic Process Automation: RPA can improve the claim processing in numerous ways through automating the assignment of claim adjusters depending on the location, availability, and enabling bulk claim payments thereby providing the speed and efficiency in the process as well as aiding in the early detection of frauds.
- Internet of Things: IoT enables the easy exchange of information between the insurer and the insured, thereby enhancing customer experience through the quick and easy exchange of claim notification and other related information.
- Virtual Customer Service Agents: Insurance Companies can make use of the AI-driven virtual agents to provide customized service to its clients. With the advancements in AI, Machine Learning this virtual customer service agents can provide human-like support to its clients.
- Drones: Insurance: companies have begun to utilize the Unmanned Aerial Vehicles(UAVs) for claim processing. Drones have been found extremely important in situations where the security of the claim adjuster is of concern. This implies a reduced cost to the company.
- Machine Learning: ML and AI can enable the easy detection of frauds as well as targeting potential clients. Also, it helps in studying the behavior of potential clients and provides insights into possible future trends.
Thus the developments in the areas of AI, Machine Learning, and Automation will significantly change the way insurance claims are processed and managed thereby providing enhanced customer satisfaction and operational efficiencies.