How applied AI is transforming auto insurance

There were 12 million car accidents in the US in 2019, according to data from Statista. Each of these comes with an insurance claim, but these processes are too long and inefficient.

After an accident, people don’t want the added stress of going through an insurance claim. They need to provide detailed assessments of damage, salvage and repair and then an insurer needs to assess client, policy and auto-repair data.

The whole process is long-winded and can leave people waiting a long time for answers. But AI technology is changing things.

Tractable has issued a new report on how applied AI is transforming the auto insurance space.

It said that AI can expedite claims by letting policyholders scan vehicle damage through their smartphone. An AI quickly assesses this visual data to recognise damage and accelerate claim settlements.

Through this, insurers are processing high-stress claims at higher volumes, saving valuable time, as well as reducing costs of each claim.

Applied AI systems, together with supporting hardware for data collection, including geospatial data, high-definition video and IoT data sets, can quickly gather evidence to make appraisals faster. It also collects verifiable data points in real-time to give an accurate picture of the claim.

It said, “In this way, AI-powered solutions give insurers much more visibility of each of its customer’s claims, offering new opportunities to improve services. For example, applied AI can flag border-line claims for further approval, ensuring that important cases get human attention and claims audits are easier to execute.”

Furthermore, fully digitised workflows let claim handlers manage by exception, automatically review and check claim estimations and more.

Tractable offered an example of how an insurer has transformed their auto claims through AI. Japanese insurance firm Tokio Marine is leveraging Tractable’s AI-based computer vision system to assess the damage of vehicles to the same degrees as a human would, all in near real-time.

The AI processes photos of the accident to assess repair, paint and blend operations, as well as labour hours needed. With this, the insurer reduces benefits processing times from days to minutes. It also has enabled Tokio Marine to reduce its carbon emissions and ensure it continues to meet its wider corporate social responsibility goals.

Reinventing business intelligence

The report continued to state that applied AI gives senior leaders a new level of strategic visibility and analytical insight previously thought impossible. Applied AI solutions enable a business to identify pivotal opportunities to increase the efficiency at a granular level. It added that a company’s data, combined with modern applied AI solutions, can help uncover new strategic initiatives and accelerated workflows.

Another benefit is that firms can improve productivity by removing tedious manual workloads, freeing time for more valuable areas, such as customer service and strategic innovation.

Other ways applied AI helps firms include revolutionising operations and customer service, scalability to new opportunities and boosting sustainability efforts.

Read the full report here.

Copyright © 2022 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.