How AI can add a human touch to claims support: Deloitte

Property and casualty insurers must rethink how they balance AI technology with a more human touch in claims handling, according to Deloitte, which published new research about how the claims experience is a key driver of customer loyalty. 

The study of 4,000 P&C insurance customer responses found that while the claims process had an above-average influence on customers' future purchase intentions, it also ranked the lowest in positive sentiment.

Many insurance customers experience complex, fragmented claims intake and communication processes, despite insurers making large investments in related digital tools and platforms. Disjointed and lengthy claims outreach may leave policyholders frustrated if their issue cannot be resolved through their preferred channel, according to Deloitte, and raises the risk of non-renewal.

"When a person has a claim, it is often an uncertain and at times highly emotional experience, particularly when it comes to their homes, businesses or higher severity vehicle crashes. The key to getting the balance right is to focus AI on claims processes and enabling orchestration with partners who provide services," said Kedar Kamalapurkar, managing director of Deloitte Consulting.

According to the analysis, the top four factors in positive customer sentiment are all related to human interaction: customer support, knowledge, communication and attitude. Kamalapurkar further notes that while insurers can leverage AI to improve processes and boost customer satisfaction, it's still important to keep a human in the loop too.

"The objective of using AI should always be to empower the human — whether that is the customer or the claims professional — to support customers in the way that they need at each stage of their post-loss recovery," said Kamalapurkar. "For the insurer, this approach can also mean faster and potentially more accurate claim processing with professionals focused on areas that require judgment or human-to-human relationship building — areas that are not the best uses of AI." 

Previous Deloitte interviews with P&C chief claims officers also show that while soft skills, like empathy and conflict management, are critical in complex claim situations, many adjusters struggle to effectively utilize these skills. 

Deloitte advises insurers to continue investing in this area of skill development in tandem with AI investments, such as with AI-powered sentiment analysis training or simulations and digital tools that offer real-time insights to help adjusters with more challenging claims interactions.

"When evaluating if they have struck the right balance, insurers should go beyond cycle time to include trust, communication quality and future purchase intent, because that is the way carriers can assess if they are building lasting commercial relationships," Kamalapurkar said.