Advanced technologies like artificial intelligence (AI) and machine learning (ML) are reshaping processes, enhancing efficiency, and reducing costs as the insurance industry continues to evolve to take advantage of technological advancements. At least one key area, however, still requires human expertise – language interpretation and translation. This article explores how insurance companies can find the right balance between technology and the human touch.
The Complexity of Language in Insurance
Individuals with limited English proficiency (LEP) represent a large market for the auto, home, and health insurance sectors. More than 26 million LEP individuals in the U.S. speak more than 350 languages. Approximately 68 million people in the U.S. speak a language other than English at home, according to the U.S. Census Bureau. Insurers need accurate policies and translations of other insurance documents to continue capturing this market. To service this market, insurers need accurate real-time interpretation to answer policyholder questions and process claims.
The complexity of insurance documentation and the nuance of the legal language required means that translation from English to other languages is challenging for AI and other machine translation tools. Similarly, interpretation of the often complex and nuanced conversation around policyholder questions and claims processing is also exceedingly difficult for these AI/MT tools. Let's explore both challenges and solutions that can ensure accuracy, create positive interactions with policyholders, and avoid increased liability and associated costs.
See also: Insurance: An Industry Embracing AI
Interpretation: Bridging Real-Time Communication Gaps
Interpretation involves real-time communication between two parties with the help of a multilingual mediator. In the insurance industry, interpreters play a crucial role during interactions with LEP individuals, enabling numerous activities such as reporting accidents, inquiring about coverage, or navigating the claims process.
Interpreters must traverse complex linguistic and cultural landscapes to ensure that all parties fully understand each other. This task requires language proficiency and a deep understanding of cultural nuances. For example, when interpreting for Spanish-speaking LEP individuals from different regions, an interpreter must be aware that the word "carro" means "car" in most Spanish-speaking countries, but in some regions, "carro" can also mean "cart." Misunderstanding this nuance could lead to significant confusion during an insurance claim discussion. Understanding these and other subtleties is vital for accurate interpretation and appropriate claim settlements.
Translation: Ensuring Accuracy in Written Documents
Translation refers to converting written text from one language to another. In the insurance sector, accurate translations of documents like policies, claims, and communications are essential to ensure LEP individuals fully understand their insurance coverage and the claims process.
AI and ML can assist with initial translations, providing a rough draft that can speed up the process. However, these translations often lack the precision needed for complex insurance documents. Human translators are indispensable for reviewing and refining these drafts to ensure they are accurate and culturally relevant. For instance, in Arabic, the word 'يد' (yad) typically means "hand" but can also imply "control" or "ownership," depending on the context. Such ambiguities can lead to misunderstandings if not properly addressed by a skilled human translator.
The Silent Threat Inside 25% of Insurance Claims
A staggering 10% to 25% of insurance records may be unreliable due to cultural and language nuances that elude direct translation. These subtleties can complicate claims processing, increase premiums, and delay settlements. Words in different languages can carry multiple meanings based on context, and misinterpretation can lead to significant misunderstandings with legal liability implications.
These misunderstandings can lead to significant negative outcomes:
- Claims Denials or Underpayments: Incorrect translations can result in claims being denied or underpaid due to misinterpreted policy terms or accident details. For example, if a term describing an injury is mistranslated, the insurance company might reject the claim or offer a lower settlement than deserved.
- Legal Disputes: Misinterpretations can lead to disputes between policyholders and insurers. Policyholders may feel they are not receiving the promised coverage, leading to lawsuits and legal battles, which increase costs for both parties.
- Increased Premiums: Insurers may increase premiums across the board to cover potential losses from misinterpreted claims. This affects all policyholders, including those whose claims are accurately processed.
- Delayed Settlements: Misunderstandings can delay the settlement process as additional time and resources are required to clarify and correct the information. This can be particularly burdensome for policyholders relying on timely payouts to cover damages or medical expenses.
Insurance claims' cultural and linguistic nuances are not merely minor inconveniences—they can have significant financial and legal implications. Ensuring accurate interpretation and translation is essential to maintaining the integrity of the claims process, upholding customer trust, and avoiding unnecessary legal complications.
See also: The Future of CX: Synchronizing AI, Human Interaction
The Indispensable Human Element
Despite the advances in AI and ML, the need for human oversight in translation and interpretation remains critical. AI can provide a first-pass translation of documents, but human experts must review and refine these translations to ensure accuracy and cultural relevance. When LEP individuals report accidents, inquire about coverage, or navigate claims, human interpreters are essential to facilitate clear and accurate communication. In these instances, AI's "good" isn't good enough.
As the insurance industry continues to integrate advanced technologies, the balance between AI capabilities and human expertise will be vital to providing personalized, accurate, and responsive insurance services.
