Artificial Intelligence won't displace Claims Handlers, but those who adopt it may elevate and improve their roles
In a groundbreaking development, DAC Beachcroft has partnered with Verisk, a leading global data analytics provider, to introduce two new products aimed at simplifying and streamlining the insurance claims process. The partnership underscores the benefits legal services suppliers can gain from using advanced claims management platforms.
The new products, developed in DAC Beachcroft's Innovations Lab, include the verifyTM claims management platform. This platform is designed to guide and support clients and their customers through the insurance claims journey, providing direct, real-time access for DAC Beachcroft's lawyers to resolve claims more efficiently.
Generative and Agentive AI, integral to these new products, have the potential to revolutionize the claims process. These technologies can learn and improve over time, offering increased efficiency by automating complex and time-consuming tasks, enhanced fraud detection, and proactive risk management through real-time monitoring and preventive alerts. AI can also analyze vast amounts of structured and unstructured data to uncover insights that improve claims handling, underwriting, and risk assessment.
However, the integration of AI into the claims process comes with its own set of challenges. Over-reliance on automated processes may lead to insurers facing heightened risks, including regulatory breaches and reputational harm. To ensure a balance between human and machine involvement while maintaining fair and lawful outcomes, insurers should retain human oversight over AI-generated decisions, develop transparent policies and procedures, disclose AI involvement appropriately, implement internal appeals and review processes, and maintain compliance automation.
Insurers who embrace AI have a competitive advantage, but human judgement and empathy remain vital for achieving the best customer outcomes. The balance between human and machine will vary depending on the part of the claims process in question. Ultimately, the final responsibility for making decisions rests with claims handlers, and they must be able to justify their decisions objectively.
Training is essential to enable colleagues to understand the benefits of using AI and how to use it effectively. Pete Allchorne and Jo Folan, part of the Strategic Advisory team at DAC Beachcroft's claims division, CSG, emphasize the importance of human judgement in the claims process. They note that the new products from DAC Beachcroft also include a feature where insurers select a road layout image that best indicates the accident scenario.
The new products are not just about automation. They are designed to support clients and their customers, answering simple questions about motor accidents, and providing a Customer Care package that includes features based on feedback from insurers and their customers. This balanced approach leverages AI to improve operational effectiveness and customer experience while safeguarding against legal exposure and preserving trust in the claims process.
[1] AI in Insurance: Balancing Efficiency, Effectiveness, and Fairness, McKinsey & Company [2] AI Ethics Guidelines for Technical Standards, European Commission [3] AI and Insurance: Opportunities and Challenges, PwC [4] AI in Insurance: A Guide to Implementation, Deloitte [5] The Future of Insurance: Embracing Change, KPMG
- The new products, resulting from DAC Beachcroft's partnership with Verisk, not only automate complex tasks in the insurance claims process using AI technology, but also offer a Customer Care package that supports clients and their customers, ensuring a balanced approach that protects both operational efficiency and legal exposure.
- As these innovative new products, including the verifyTM claims management platform, are implemented, it is crucial for insurers to maintain human oversight over AI-generated decisions, develop transparent policies, and retain the final decision-making authority with claims handlers, thus ensuring fair and lawful outcomes while leveraging the advantages of AI.
