Q&A: Davies on the claims handling applications of AI

8th July 2024

This article was first published by Insurance Times.

Jon Glover, director of technical products at Davies, discusses how artificial intelligence could improve the claims handling process.

1. Much has been said about AI’s impact on the industry, but how is the technology being used to disrupt the claims handling sector?

While it’s still early days for the latest advances in artificial intelligence (AI), we’re already seeing the application of this technology to make claims handling processes far more efficient.

For example, AI-powered chatbots providing 24/7 customer support, handling inquiries and basic claim notifications, are freeing up handlers to focus on more complex cases and the more technical elements of a claim.

Such examples go beyond the hype, demonstrating the tangible benefits of using AI. It’s in these areas that we’re seeing signs of disruption in the traditional processes.

2. For all the hype around AI, what are some demonstrable benefits for customers and insurer spend?

We’re already seeing faster claims processing, improved turnaround times and higher levels of support.

There are also early indications that AI can deliver a more personalised claims handling journey to the customer, through highly tailored and real-time responses.

For instance, our Sonic credit hire technology removes the need for handlers to carry out manual searches, creating an almost instantaneous and holistic credit hire claims process.

This has halved the cost for insurers in some cases and provided a much quicker resolution for the end user – a great demonstration of AI impacting both the insurer’s bottom line and the customer’s experience.

3. How can claims handlers ensure that the adoption of AI is targeted at the points that will create the best return on investment?

There needs to be a deep understanding of the problem space. It’s important not to find a problem for the solution – there are already too many examples of implementing tech for tech’s sake.

It’s about keeping handlers at the heart of the design process with an AI-first approach designed to remove both handler and customer pain points, helping create genuinely game-changing AI platforms.

By developing technology in partnership with insurers, products can be – and are being – created that develop a more harmonised claims handling process, focusing on the needs of the customer and removing the practical day-to-day issues encountered by insurers.

4. What are the benefits of customer experience when leveraging AI?

It’s important to remember that customers view interactions with their insurer as transactional and part of their overall digital experience, meaning every touchpoint is incredibly important for customer retention.

The benchmark for these interactions isn’t necessarily the insurance industry, but rather other elements of a customer’s life, such as Netflix or Amazon.

Generative AI can help ensure these touchpoints are seamless, creating a higher level of brand loyalty in the process. AI can be used to interpret a customer’s state of mind based on previous calls, helping personalise the handler’s approach and drive customer engagement by altering how they interact with their insurer.

5. How important is a holistic understanding of the claims handling value chain when considering AI?

It is vital if the tech is to have a real and lasting impact. To use a working example, we developed claims processing platform Lauri CS in close collaboration with an insurer.

By utilising an AI-first approach and deep understanding of the market, we revolutionised their claims handling.

The system utilises unprecedented data sets, providing a 360-degree view of the claims process and customer interactions, resulting in a more data-led strategy and fully optimised customer experience.

By delivering AI-driven, end-to-end processes in this manner, we can increase the strategic strength and agility of an insurer’s decision-making, helping retain customers and decreasing spend.


Get in touch

Jon Glover
Director of Technical Products
Email | LinkedIn

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