Artificial intelligence has the potential to transform the claims process, but that transformation must be done in a way that elevates the standing of the adjuster through the better application of data and efficiency improvements AI delivers.
This is according to a panel at the Crawford Technical Claims Forum which took place in London recently.
Andy Hutchinson, chief revenue officer at Turvi, told delegates: “The transformation that we're seeing now with AI is something that we've have experienced before with the development of the internet.
“We believe that probably within the next 10 years, you most likely will not be able to imagine your lives without utilising some form of artificial intelligence.”
Taking an AI step forward
The technology is helping the insurance industry to take significant forward steps in terms of how it handles the massive amount of data it holds. However, the panel recognised the importance of ensuring that AI served as a tool.
Greg Smith, president of Crawford Canada, highlighted that just because AI technology is data driven doesn’t mean the AI is in charge: “The impact of it being data driven doesn't mean you let the data do the driving. At the end of the day, it's that human input and that human judgment that brings that data to life and takes a decision based on that data.”
Mollie Brentnall, IT director at Crawford UK, pointed out that AI is best used as a tool to support and guide humans to make intelligent decisions: “The data is there, but it doesn't make the decision. It supports and guides.”
AI is already making waves across the claims sector and Turvi has created models to assist claims handlers. Hutchinson explained:
“One of the tools that we're working on is called Cover AI, where we have built large language models that will read and analyse insurance policy language to give you a coverage determination.”
Crawford is also developing proprietary technology for subsidence claims, combining mobile technology with AI and data science to accurately assess instances of subsidence within seconds. “The overarching aim of our AI ambitions,” said Brentnall shortly after the discussion, “is to develop innovative technology that puts powerful insights into the hands of our teams. This not only enhances accuracy and efficiency, but also delivers the best possible customer outcomes in every claim situation.”
Maintaining a controlled approach
Of course, technology does not come without risks. The panel, chaired by Sophie Roberts of The Insurer, pointed out that every task a human asks an AI bot to complete results in carbon usage so the benefits must be weighed against the costs.
Brentnall commented: “We must bear that in mind when we're thinking about these use cases. Where is it most appropriate? Where are we going to get that valid payback? We do have to include in part of our thinking whether Ai is the right option in each instance.”
Data security and appropriate use are also key considerations according to Smith: “The biggest risk is that people are using it in an uncontrolled environment,” he told delegates. “It's making sure that they're recognising the risks around data security, data integrity, and always understanding where it's safe to use AI.
“We have to give our employees the tools that are protected and secure so that our customer data is not at risk, but also making them aware of what the particular limitations of the technology or the tools are.”
In this context, AI regulation is coming much more into focus globally. The panel believed that AI regulation is essential to ensure products are fit for purpose and that the sector is held to the highest standards.
A positive step that regulators are taking is they are creating a compliance approach based on outcomes rather than rules.
“Lawmakers are very aware of the fact that the technology will move a lot faster than regulations will move,” explained Brentnall. “So, they are writing these values based and outcome-based regulations. This is really helpful as it gives us clear tram lines to operate within.”
While risks exist, AI clearly offers significant potential in the claims space – not to replace expertise but enhance it. As Smith concluded: “AI is doing the redundant necessary work in the background, capturing data and supporting our adjusters. These AI-based tools are here to make your job better, and more satisfying because you can focus on the more important and valuable aspects of your role.”
AI has a clear and important role in the claim context. The key for the claims professional is getting the balance right – capitalising on the data and efficiency benefits it delivers so they can focus on servicing customers and exceeding their expectations.
