The insurance industry’s digital transformation isn’t confined to direct-to-consumer sales and online payments. Claims are changing, too. With new technology, a faster and more efficient claims process is possible.
Automated Claims Are Gaining Acceptance
Consumer preferences have a big impact on what technology thrives and what technology flounders. So, the question is – do consumers want claims automation?
More and more, the answer is a resounding “Yes!”
According to Property Casualty 360, a survey found that more than three in four auto insurance customers trust AI to handle automotive claims and repairs entirely. The survey also found that two-thirds of consumers would switch insurers if it meant accessing a faster digital experience, while 73% of consumers say they would go with an insurer that uses AI to speed up the claims process.
Consumers trust automation, and perhaps more importantly, they want the fast claims processes that automation can deliver. Insurers that meet this demand will have a significant edge over the ones that don’t.
The Future of Claims
What will insurance look like 10 years from now?
In Insurance 2030 – The Impact of AI on the Future of Insurance report, McKinsey & Company predicts that IoT sensors and other technologies will automate the first notice of loss and trigger claims triage and repair services immediately. Advanced algorithms will handle initial claims routing, while claims for personal lines and small business insurance will be largely automated.
The result? Claims processing times will go from days to minutes.
Humans Will Still Be Needed
With all this talk of automation and artificial intelligence, you may be wondering – where do human adjusters fit in?
It’s a fair question. The U.S. Bureau of Labor Statistics says that claims adjusting positions are in the decline. Between 2019 and 2029, the number of jobs is expected to decrease by 6%.
Despite this drop, human adjusters will still be needed. Automation is great, especially when it comes to typical claims, but there are limits. Many claims will still require a human touch.
According to Risk & Insurance, automation is not always suitable for complex losses, and humans are still needed for their expertise and problem-solving skills. Humans also win when it comes to building client relationships.
Human Focus Will Shift to the Big Picture
While some insurance professionals may be worried about the potential loss of jobs, there is a bright side. With AI technology to cover simple and repetitive tasks, insurance professionals will have more time to focus on things like policyholder experience and loss ratios.
About Covenir’s Claims Team
Covenir offers full service claims support to insurers throughout the nation. We are known for delivering superior FNOL intake services, but our experienced claims adjusters can do much more than answering calls, including claim triage, resource deployment, settlement and subrogation.