AI Leveraged to Speed Up Insurance Claims
May 12, 2020—Going virtual and digital in light of coronavirus events, is the way to win over customers, according to a recent webinar on "Claims Like Never Before—Agility, Leadership and Collaboration for a Seamless Claims Experience."
The webinar was recently hosted by Insurance Nexus, the central hub for insurance executives, and Tractable, a company that develops artificial intelligence for accident and disaster recovery, to take a closer look at how repairers and insurers can make the customer experience an easier one.
Artificial Intelligence is going to be critical in how the auto industry grows out of this current environment and into the next one, says Jimmy Spears, head of automotive for Tractable.
Shops need to keep speed, accuracy and service in front of mind and vet out suppliers during this time. While Spears offers takeaways aimed more specifically at collision repair shops, every repair shop has options to implement AI programs to help make the repair process easier for the customer.
Speed: One example of speed is a touchless first notice of loss (FNOL) process. When a customer calls in from a scene of an accident, the service representative can send him or her a link over. By the time the customer opens the link, two to three minutes later, the customer has the critical decision at the FNOL. If the car is repairable, it has to go the shop of choice. If it's not, it has to go down the loss channel.
"When we talk about speed and look at vendors, we have reduced one week of cycle time out of that process and that is a significant amount of time," Spears says in the webinar. "Having those critical decisions placed up front has an impact."
Accuracy: One example of accuracy is to do an estimate review and this case, a second review. Use a tool that can see the vehicle so that everyone can be calibrated to the review and where there is opportunity, pick up 20 to 30 percent more accuracy out of that file.
Service: The right decisions need to be escalated. Artificial Intelligence tools can be used to supplement some staff.
"One of the biggest things I had to consider was that we did have an aging population and in particular in the auto physical damage space," Spears said. "It's 20 to 30 percent and in some carriers about 40 percent of their auto physical damage space is retirement age or a little bit older."
For the customer, any movement needs to be done to reduce the period of uncertainty. Touchpoints need to be reduced.
A large carrier for example is better able to have one touch at the FNOL, one touch when it comes to the shop and one touch when the customer picks the car up.
"If you can have three touches or less, you will certainly score the highest in the polls we use in the industry," Spears says.
He says that shops now can use technology like Tractable to have 70 percent fewer total losses going to shops.
And, even for parts suppliers, with AI, at the FNOL, these suppliers can begin to have orders come in at FNOL and this can further reduce cycle time.