It wasn't that long ago that insurers had to rely on a lengthy information-gathering process --
talking to the drivers involved in the crash, interviewing witnesses or third parties at the site,
and reviewing police reports. Today, telematics can help reconstruct the actual accident by
collecting a myriad of vital information at the beginning of the claims process. This critical
information can be pre-filled in the claims management systems for review and helps to
settle claims faster on the backend.
In 2020, USAA announced the launch of a telematics enabled auto claims (TEAC™) solution.
TEAC utilizes data from the company's behavior-based telematics app called SafePilot to
expedite the claims process, allowing for a more seamless member experience and faster
resolution of claims. While driving patterns, and the associated auto claims levels, are still
below pre-pandemic levels, the severity of these accidents has increased. As a result, USAA
will be accelerating the next phase of the TEAC offering-- proactive crash detection.
There is one other interesting note about USAA. In 2019, the insurer completed a
pilot where field adjusters were equipped with augmented reality (AR)-enabled
glasses. These glasses allowed their managers to see what the adjusters were
seeing and give real-time feedback during physical inspections. The pilot
eliminated 160 hours of travel time for four adjusters over the course of three
months. USAA has now entered a production-level test period with 250 pairs of
AR-enabled glasses distributed to adjusters.
Fraud Detection
Fraudulent claims cost insurance company's money. Over the years, industry estimates of
insurance fraud have hovered in the 10% range. But in a recent study by FRISS (global leader in
AI-powered fraud detection software for insurers), that number almost doubled. According to
the responses from 500 insurance professionals worldwide, 18% of all claims contain an
element of fraud, inflation, or misrepresentation.
"The top fraud schemes that saw an increase in popularity during COVID-19 are staged
accidents and vehicle thefts, procedure billing or phantom services, and fake accidents
occurring at people's homes."
In a study by the Coalition Against insurance Fraud, most insurers rely much less on traditional
technologies such as business rules and red flags, and more on predictive modeling, link
analysis and exception reporting. A growing number also employ artificial intelligence.
"Detecting claims fraud continues to be the reason most anti-fraud technology is deployed.
Every property/casualty company — and half of non-pc insurers surveyed — report detecting
claims fraud as their primary reason for employing technology."
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