The insurance settlement is the most important moment in the relationship between the insured and the company. Technology comes to improve processes, make them more efficient and generate improvements in customer satisfaction.
The time of the claim is, traditionally, the most important in the insurance circuit. It is the moment of truth, where each of the actors play cards. Many actors participate in the claim process: the insured who makes the complaint, one or more insurers involved, the insurance producer, the liquidator and, in the automotive sector, the workshops or those in charge of obtaining the spare parts. In addition, it is at the time of the claim that the anti-fraud mechanisms are activated. It is a moment of tension, decisive, and in which more attention must be paid for customer satisfaction.
The complexity of insurance settlement and payment processes makes it fertile ground for implementing technology. Any technological improvement will speed up processes, guarantee security and improve fraud detection systems. For these reasons, claims settlement is where the greatest innovation in insurance is concentrated.
The insurtech have several technology proposals to improve the processes, and the insurers themselves are beginning to work on improvements in their applications that allow progress in the self-management of the claim. The trend is that, in cases of simple claims, the insured themselves can manage the entire life cycle of the claim from their cell phone.
In the updates of the applications of the insurers, new functionalities that go towards self-management are observed. The La Segunda Insurance Group, for example, recently presented an application that allows the user to manage the replacement of wheels. Meanwhile, Galeno Seguros -see note below-, is working on a “self-inspection” application to be able to self-manage car claims.
TWO KEYS. In the insurtech world, progress is also being made in solutions that help insurers to improve processes. Technology companies come to create a disruption in the business model with technology.
One of them is LISA, a technological solution based on artificial intelligence and machine learning, which is responsible for speeding up claims settlement processes. The solution, created by a Chilean company, collects the information sent by the victim in the complaint and automatically proposes a settlement to the insurer. In 80% of the cases, which are simple claims, LISA can have the settlement in 15 minutes, without the intervention of an inspector. The solution is designed for the liquidation of automobiles, home, unemployment and health. In addition, all the information generated in the application is secured in a chain of blocks (blockchain) with two keys: one held by the insurer and one held by the insured.
“The idea is to streamline the end-to-end process of the claim from the complaint, settlement and payment,” explains Alfredo Muñoz, communication manager at LISA Insurtech. The executive points out that the implementation of technology combined with artificial intelligence makes it possible to reduce claims management costs by about 60%, be 80% faster in settlement and increase customer satisfaction by approximately 20%.
On a similar path is Iupik, an Argentine company that works to solve the complexity of claims, especially in the automotive sector. The company is working on the first technological evolution, which has to do with starting to digitize claims processes and have visibility at all times. As a second step, Iupik hopes to develop artificial intelligence. “We give you the possibility of doing a 100 percent online process. Inspectors can validate the claim from the office through a remote inspection or coordinate a physical inspection, if necessary ”, indicates Patricio Pelizzari, CEO of Iupik. In addition, the application concentrates all the information of the claim and allows to keep the user informed, improving the experience. The expectation is that the implementation of this type of process reduces costs by about 50% due to the reduction in the time required for an inspector to carry out the inspection.
In large claims, the situation is different. Self-management is not possible, because specialist inspectors are required who can make an assessment of the claim. However, technology is already offering alternatives to improve the process, mainly with the use of drones. This is of vital importance in branches such as agriculture, where in the event of a meteorological event, the company receives more than 300 claims that must be settled.
Tomás Fourcade, Adjustments Manager at Leza Escriña y Asociados (LEA) states that, for agricultural risks, where there are large tracts of land to assess, liquidators rely on satellite images and drones to understand the magnitude of a loss. In addition, the company has developed its own software to load information related to the crop, evaluate the yield of the agriculture and estimate the damage “In reality, technology does not serve so much to speed up times, but it does to avoid errors in the process. What we achieve is to ensure that all the information that is sent to the insurer is accurate ”, he details. As a second benefit, there may be a reduction in time, because the insurance company receives all the analysis, evidence and images in a much more reliable way, which avoids having to re-review the information, accelerating payment times.
FRAUD. In the insurance market, it is estimated that claims fraud represents between 10% or 15% of insurance premiums. For this reason, processes and controls are established that clients have to go through to confirm the existence of the claim covered by the policy, delaying claims processes. Technology has evolved to assist insurers in this process, taking advantage of available information to verify fraud. “Imagine how much simpler the insurers’ processes would be if they knew that everything stated by the client is true,” says Gonzalo Delger, an entrepreneur who is one of the three founding members of Emet360, the company that represents and implements RA7 technology. in Argentina.
RA7 is a technology that allows to demonstrate the veracity of the complaint with a very high level of security, allowing clients who are not at risk to have a much faster process. The technology, explains Delger, allows to reduce the insurer’s claims ratio, since a high percentage of fraud is eliminated and improves process times and, consequently, their costs.
Other alternatives are also being used to prevent fraud. Liquidators are taking advantage of the Fénix system, a sinister history database that allows fraud to be detected early.