Utilising Intelligent Automation in Insurance Claims Processing

The insurance industry is one of rigorous processes, extensive regulations, and complex circumstances that lead to pay outs. Manual handling of these processes and data has been the norm until now, but artificial intelligence (AI) marks the start of a new future for insurance companies.

At Future Workforce, we’re delivering the AI solutions of tomorrow, accelerating your operations across the board. In this article, we’ll talk about the current state of AI in insurance – particularly, how intelligent automation can enhance your insurance claims processing.

Interested in our work with the insurance sector? Start your digital revolution by getting in touch.

What is InsurTech?

Quite simply, InsurTech is a combination of insurance and technology. It refers to the emerging technologies that are making an impact on the insurance sector. Many developments like blockchain, big data, and AI have been around for a while – but only now do we really have the tools to utilise them.

The insurance industry has really come a long way with the advent of modern artificial intelligence. InsurTech, a subcategory of financial technology (FinTech), applies these new solutions to form possibilities driven by the latest innovations.

InsurTech leads to a future where your operations can integrate with AI and other tools, helping you to undergo a digital transformation that reduces your costs, increases your efficiencies, and expedites your operations.

Other Types of Digital Transformation

While InsurTech is the blanket term for the digital transformations that are occurring in the insurance industry, it can be broken down further into a number of terms and tools. These tools are important to consider, as they are continuously being worked on and improved.

Before long, the state of the insurance industry will be incomparable to before, so integrating your processes with digital technologies now will prepare you for the future. Some of the primary tools that can lead you towards a digital transformation are:

  • Process automation
  • Artificial intelligence (AI)
  • Machine learning (ML)
  • Data analytics

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How does AI Impact Insurance Claims Processing?

Claims processing is a critical part of insurance – often a make-or-break scenario for insurers, making sure your processes are refined to perfection is a mandatory requirement.

The customer experience is of key importance during insurance claims processing. Anyone making a claim is likely to have suffered a loss of some variety, so treating them with respect and delicacy is vital.

At the same time, you need to ensure your business is protected. Not just by making sure you aren’t making a loss with your policies, but also by preventing fraudulent activity from bad actors.

AI can do all this and more, restructuring your insurance claims processing while reducing the associated costs and creating and a system that provides benefits to both you and your clients.

Streamline your insurance claims processing with automated intelligent solutions – contact us today.

The Benefits of Intelligent Automation for Insurance

Intelligent automation is the use of AI to reduce the need of humans in repetitive processes. By automating your operations and backing them with intelligence, you create a streamlined and informed system that optimises your rates, claims, communications, and more.

To give you a better grasp of how and where you can apply AI solutions to your insurance operations and claims processing, here’s six quick benefits of intelligent automation:

1.     Utilising Data-Driven Insights

Making informed decisions across all your business practices is perhaps the most important aspect of AI. From the rates and premiums you set, to the analysis of claims, AI can distinguish between data elements and provide an insightful output to give your business an edge and keep you profitable.

2.     Streamlining Claims Process

AI has the ability to absorb and digest enormous amounts of data, analysing and categorising it into more manageable portions. This supports you in assessing the validity and extent of claims, along with feeding into fraud detection routines, helping you to increase the accuracy of your claims process while simultaneously decreasing the processing times to a fraction of their previous value.

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3.     Simplifying Complex Tasks

Despite the complexity of the tasks that are involved in the day-to-day of your insurance business, a lot of them are routine. With AI becoming more powerful as time goes on, even these complex routines become automatable. Hands-free processes means more time to run your business, leaving the repetitive tasks up to intelligent automation and AI.

Distil hard tasks into simple routines by updating your operations with process excellence >

4.     Analysing Risk Factors

Large language models (LLMs) can pull from a huge number of data sources. With this level of scope, you can create predictive algorithms based on historical data and events that project into the future. These allow you to set appropriate rates for your clients – not just based on what is happening now, but based on what is going to happen next.

5.     Safeguarding Your Revenue

Aside from dealing with the inherent risk of insuring a client that may make a claim, AI can also help you prevent fraud. By analysing data and spotting errors or inconsistencies that a human might otherwise overlook, you can prevent fraud from occurring – protecting your revenue.

6.     Improving Customer Experiences

Generative AI (GenAI) of the past have been clunky, inhuman, and ineffective. GenAI today is near-indistinguishable from a human. While they can’t do everything, AI solutions can be a great addition to your customer service team. By automating responses to common user queries and adapting to behaviour based on context, AI can enhance the customer experience by streamlining the user journey to the information or contact they need.

Take your insurance claims processing and general operations to new heights – contact our team today.

The Future of AI in Insurance

So, what’s next for AI in insurance?

Well, aside from the growing capabilities of GenAI, predictive analytics, machine learning, and data management, there are a number of growing trends in the tech industry that could see a significant impact on not just the insurance industry – but the world at large.

  1. Democratised AI is making it easier than ever for businesses to integrate AI into their operations, helping you to enhance your insurance claims processing without investing significantly into bespoke solutions.
  2. Software 2.0 marks the next generation of coding, where the role of dev teams could see some changes. Drive your business in accordance with your vision by working with code yourself – even without training or knowledge.
  3. Data Detoxification is taking all the bad out of large data sets, leaving you with pure, filtered gold. This newly cleaned data can then be used to inform your decisions and accelerate your business, creating the best plan of action built from the most reliable data sources.

Find out more about upcoming tech trends in 2024 

Accelerate Your Claims Processing with Intelligent Automation from Future Workforce

While world events have meant the insurance sector has taken a hit in recent years, intelligent automation can make your business stand back up with increased rigour. By enhancing your processes across the board and drawing insights that would otherwise be near impossible, you can bring your operations to the next level.

Get in touch with the team at Future Workforce to start your digital transformation, check out our services for an overview of what we do, or find out more about our work in the insurance sector.

Meet the Authors

Edwin Provoost

Edwin Provoost

Business Manager

An experienced commercial and organizational business builder with a comprehensive international network on senior level. Highly energetic, focused, strong on sharing knowledge, building trust & relationships and used to acting on C-level

Daniel Young

Daniel Young

Consulting Director

Has over 20 years of consulting experience at global system integrators across Europe, US, Middle East and Asia. Prior to FWF, Daniel led Intelligent Automation Consulting Practices supporting organisations across Financial Services, Banking, Insurance, and Energy sectors to achieve value from Intelligent Automation.

Contact Daniel