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Trends in Claims Automation The insurance industry is at the brink of going digital, and claims automation is leading the way. A 2019 McKinsey report predicted that approximately 60% of claims will be fully automated by 2030, 1 a revolution we are experiencing in real time. 32 ©2022 Redhand Advisors. All rights reserved. At the same time, the post-pandemic world contains fewer claims adjusters trying to manage an ever-growing pile of claims. Though the cost of technology is decreasing as the number of digital natives rises, an explosion in claims costs threatens to overwhelm the whole system. Manual reporting is soon to be replaced with an automated claims process in many cases. Not only does automation increase efficiency and reduce risk, but it leads to dramatic cost savings over time. And it frees up adjusters and expert claims personnel to make the real decisions. Claims Automation: Where Are We Now? Many organizations have come to embrace to digital risk management solutions. They currently rely on a variety of tools, from a RMIS with a full suite of capabilities to independent SaaS add-ons, to support their claims processes. These tools provide a certain amount of automation to help streamline the claims process. Claims automation already benefits businesses, carriers and TPAs in the following ways: Time savings. One of the greatest benefits to claims automation is time savings through claims resolution. The simplest, most straightforward claims that can be automated in some way, or completely. 1 McKinsey & Company, "Claims 2030: Dream or Reality?" April 2, 2019.