Optimizing Claims Prevention
In the arena of claims reduction, there is one area that remains relatively untapped by most
insurers. It's the proactive vs. reactive approach of their claim's operations. With newer AI and
analytical capabilities, insurers no longer have to wait for an incident to occur. New
technologies like telematics and connected devices -- can alert claimants to potential risks
before a loss occurs.
In their article, "Claims 2030: Dream or Reality?", McKinsey provided some examples.
TOUCHLESS CLAIMS | 11
By interacting with policyholders before a loss, Insurers have the opportunity to transform the
claims journey and become claims prevention partners with their customers. That is truly a
win-win situation.
Is Touchless Claims the Future?
It is true that technological advancements have transformed claims operations in ways that
were never imagined before. Artificial intelligence, machine learning, advanced analytics and
automated processes are having a huge -- and positive -- impact on the industry.
But is a totally touchless claims operation viable for most insurance carriers? Can you take
humans out of the equation? Or maybe the question is -- should you?
As smart as artificial intelligence and machine learning algorithms may be, they aren't
flawless. Many companies leverage algorithms to reach one decision: should a claim (or parts
of it) be handled automatically or be referred to a human?
"Sensors in buildings will alert owners and insurers when temperatures indoors get
low enough to freeze pipes and automatically trigger integrated smart
thermostats to turn up the heat. In areas vulnerable to hurricanes, smart homes
will automatically deploy hurricane shutters based on weather notifications sent
by the insurance carrier. Similarly, in the manual labor workplace, sensors
embedded in workers' clothing and telematics devices in machines will notice that
an employee is working long stretches and prompt her to take breaks to maintain
alertness. When she steps out of a 'safe zone,' sensors monitoring her movements
will send an alert that stops her machine automatically, preventing injury."
