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How technology has disrupted the insurance claims system in recent times

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Per Ravi Mathur

The insurance claims settlement/repair industry has emerged as an important domain in recent years, facilitating the easy resolution of customers’ insurance claims. In the insurance industry, where companies compete for customers, the claims settlement ratio is one of the most important factors in helping customers choose a provider. The latest technological trends have notably disrupted the insurance claims industry. Customer expectations have increased in line with the digital age and it has become imperative for the various insurance settlement platforms to adopt the latest technology to successfully compete and stay in the market.

Some of the most revolutionary technologies in the insurance repair industry include artificial intelligence (AI), machine learning and robotic process automation. Compared to the conventional approach previously used by repair companies to process claims, contemporary technology like AI incorporates intelligent programming to discover specific claim patterns at random or on a large scale. The best part is that insurance repair procedures can be performed smoothly with the latest technology without increasing operating costs or consuming an extra amount of time. Machine learning algorithms, for example, are used in detecting fraud and tracking abnormalities in insurance claims, which significantly helps in the proper and quick resolution of insurance claims.

Also Read: How Does Life Insurance Claim Settlement Work In India?

Artificial Intelligence (AI)

The most revolutionary technology used in the contemporary insurance repair industry is AI (Artificial Intelligence). Computer systems have evolved remarkably due to AI and machine learning. With the automation of robotic processes, the ability of operating systems has been enhanced to efficiently process claims. AI has facilitated unprecedented prospects for disruption in the insurance industry. Automation opportunities for claim processing have expanded due to AI, which has resulted in faster, error-free claim resolutions.

The concerted use of machine learning algorithms to detect fraud in insurance policies has changed the way the claims settlement industry works. Companies are implementing AI-centric technologies at an increasing pace to monitor and prevent fraud, handle complaints and improve process efficiency. The immense potential of Artificial Intelligence (AI) is expected to work wonders for insurance repair platforms and customers, transforming the operations paradigm.

IoT (Internet of Things) technology

One of the prominent innovative technologies that have disruptively transformed the claims settlement industry is the IoT. The Internet of Things (IoT) refers to the network of physical objects, “things”, that are incorporated into sensors, software and other technologies for the purpose of connecting and exchanging data with other devices and systems over the Internet. IoT technology and telematics provide real-time risk monitoring, which has been very useful for claims settlement platforms to solve claims settlement problems on automobiles, P&C (property and accident) and health insurance policies. Telematics is a branch of IoT that combines telecommunications and computing that allow the flow of information. Combining telematics with IoT has been a game changer for the insurance claims settlement industry.

Read also: Settling car insurance claims online – Everything you need to know

Data Analyze

Data management and accurate analysis are crucial to the success of the claims repair industry. Data analysis plays a vital role in identifying issues for remediation purposes. Data analytics, for example, enable insurance claims settlement platforms to accurately predict policy defaults, improve decision-making, reduce operating costs, improve claims triage and even identify new trends. The claims procedure has been one of the important issues for the insurance industry.

Fraudulent insurance claims can be conveniently identified with the aid of technology that notably allows the use of sophisticated algorithms for data evaluation. Assistance provided through the latest data analytics technology not only helps insurance repair platforms in faster resolution of issues related to insurance claims, but also in early detection of similar issues. The digital efficiency provided by Data Analytics leads to smoother and faster customer service, which is a boon for any insurance repair platform.

Digital innovation and disruptive technologies like AI, IoT, cloud computing, predictive data analytics, etc. have drastically influenced the execution and procedural practices of insurance claims repair platforms in recent times. The new age technologies mentioned above are here to stay for the overall betterment of the insurance claims settlement industry. Innovative technologies are making a commendable contribution to the diligent operations of insurance claims settlement platforms, which will subsequently lead to a commendable customer experience and better resolution of insurance-related claims.

(The author is co-founder and CTO (Chief Technology Officer) of Insurance Samadhan. The views expressed above are personal)