Cognitive computing soon will be coming to insurers via high performance claims handling, According to “Data: The Foundation of High Performance Claims Handling,” by Aite Group.
Improvements in quickly and efficiently compensating policyholders for covered losses can’t continue to come from tweaks to existing processes, Aite Group said. Improvements rather will come from increasing the performance of those processes by better making use of data from underwriting, policy and claims systems, as well as external data.
Almost 15 percent of loss costs and loss adjustment expense could be saved through better use of technology, Aite Group said. Using the 15 percent figure, the innovation opportunity could be more than $110 million for a carrier with $750 million in premium, according to the report.
Also see: Realizing the Power of Claims Excellence
“Carriers that pursue high performance claims will reduce claims leakage, improve workflows, and help policyholder retention as well as the retention of claims professionals,” said Jamie Bisker, senior analyst in Insurance at Aite Group. “Engaging claims professionals with new technology and not confronting them with it will help assure faster utilization and the positive results that come with it.”
Aite Group's research is based in part on a 2013 study of new entrants to the U.S. P&C insurance claims-handling market, and considers the potential of new technologies to change processes from which most policyholders derive their opinions of carriers.
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