The Insurer of the Future - Part 3

The first two parts of this series are here and here. William Gibson, the author, once said, “The future is already here - it's just not very evenly distributed.” So what is "already here" in relation to claims handling? Two data points:

• Lemonade, the new U.S. insurer, says it has used AI to complete the entire claims process in less than three seconds.
• Fukoku Life, in Japan, expects 30% efficiency gains from replacing employees with an artificial intelligence system that can calculate payouts to policyholders.

See also: ‘Gig Economy’ Comes to Claims Handling   The Insurer of the Future will handle almost all of its claims automatically, without human intervention. It will:

• Detect claims using sensors on the Internet of Things (IoT) and data feeds from, for example, death registries
• Analyze those claims by drawing on multiple internal and external data sources and applying artificial intelligence (AI) to establish what needs to be done
• Assess appropriate reserve values and input them to the insurer’s financial systems
• Trigger external supply chains, such as clean-up and restoration services, body shops and online retailers, to return the policyholder to the pre-loss state
• Instruct loss adjusters where necessary, ingest their subsequent reports and act on their findings
• Make payments directly into policyholders’ bank accounts where appropriate
• Trigger, and follow up on, recoveries and reinsurance claims as needed

See also: Insurtech: Can It Help Claims Experience?   In the early days, this will happen for simpler claims only. But in due course, as the abilities of cognitive/AI systems surpass those of humans, claims personnel will no longer be required by the Insurer of the Future.