Automate insurance industry

Digital landscape is disrupting industry with embracing new technologies to enhance their offerings and streamline operations. The insurance industry is indeed undergoing significant automation and digital transformation.

Enabled by advancements in artificial intelligence, blockchain, and the Internet of Things, insurers are revolutionizing the way they interact with customers, provide personalized experiences, and manage risk. According to McKinsey, 25% of the insurance industry will be automated by 2025 with the help of AI, machine learning and similar technologies.

A multitude of forces are jolting the once stable insurance industry. Rising competition from insurtechs, mounting unconventional risks like climate change, and increasing consumer demands for digital-first, personalised coverage are all challenging the traditional insurance models.

Given that 42% of global insurance consumers don’t fully trust their insurers, it’s time for the industry to step up and rethink their services and experiences - beginning with the claims process.

Most customers want their claims to be handled with empathy, speed, and transparency. A report from the Insurance Regulatory and Development Authority of India found that the majority of customer complaints (66%) among general insurance companies were claims-related.

Accenture predicts that poor claims experiences could put up to $170 billion in renewal premiums at risk globally over the next five years. And that’s just the financial impact. 89% of insurance executives worldwide confess that delays in the claims process during the pandemic have dented trust, 66% to a massive or significant extent. Renewing that trust will require insurers to focus on elevating customer experiences with the help of automation, analytics, and AI.

Automation plays a crucial role in detecting and preventing insurance fraud. Advanced algorithms analyze patterns, anomalies, and historical data to identify suspicious claims or behaviours. Automated systems can flag potential fraud cases for further investigation, improving the overall integrity of the insurance industry.