TECHNOLOGY
through computer vision algorithms and automatically generating an accurate repair cost estimate .”
Paul Donnelly , Executive Vice President , EMEA at Munich Re , agrees . He says , “ With each acceleration to the settlement process , the carrier is able to improve the insured ’ s experience of their service and their experience of insurance as a whole .”
Donnelly believes the success of these ‘ pay and finalise ’ systems to date means that he expects to see a role for AI and data analytics in claims settlement of everincreasing complexity .
Embracing the technology The new technologies have made great strides in some areas and have had less impact in others . Often , this is because some sectors are naturally more technology-open than others .
Alan O ’ Loughlin , Director , Data Science International at LexisNexis Risk Solutions , believes commercial property insurance has been significantly driven forward by the technologies . He says , “ I think the use of AI and data analytics in claims management and settlement has advanced in some lines of business more than others . In the commercial property insurance arena , data analytics and data visualisation are enabling providers to understand the precise impact of a severe weather event on policyholders in a defined location .”
O ’ Loughlin points out that companies can use motor insurance , telematics or usage-based insurance and its driving behaviour data to get on the front foot at first notification of loss ( FNOL ), helping to deliver a better consumer experience post-accident .
He says , “ Changed customer expectations , new technologies , and
“Changed customer expectations , new technologies , and new market entrants require insurers to rethink the claims journey ”
ALAN O ’ LOUGHLIN LEXISNEXIS RISK SOLUTIONS
new market entrants require insurers to rethink the claims journey . The insuranceclaims journey — from prevention , to loss notification , to assessment , to handling and settlement — has historically been opaque and confusing to customers .”
“ They have paid in advance for an abstract product , a policy to defend against risk , and at the “ moment of truth ” when they want to recoup a loss , they are faced with a complex , cumbersome , often very time consuming and iterative process .”
From the insurer ’ s perspective , claims management is often seen as a cost centre only , as claims expenses and indemnity
100 January 2022