How Top Carriers Use AI to Boost Customer Experiencehttps://www.lovelandinnovations.com/wp-content/uploads/2019/03/3.6.19_top-carriers-AI_r1@2x-1024x576.png 1024 576 Bruce Crankshaw Bruce Crankshaw https://secure.gravatar.com/avatar/a6ccc9e1b95013852bf3ac771b0fc875?s=96&d=mm&r=g
The claim settlement process is the pivot on which customer experience turns. Two main underpinnings support the importance of claim settlement. First, a claim is the opportunity for the carrier to fulfill its promise to a policyholder. Second, at no other point in the customer lifecycle are a policyholder’s expectations so high.
The combination creates a critical point in carrier operations. If a carrier handles the claim settlement process well, they have created a loyal customer and a net promoter. But a dissatisfied claimant will likely shop for another carrier and may take their friends and neighbors with them. According to one customer satisfaction report, fewer than half of the dissatisfied claimants polled would recommend their insurer, and 10 percent have already switched carriers.
Today’s insurance carriers have an opportunity to create a competitive advantage not only in customer experience, but also in claims handling, loss adjustment expense, and even underwriting practices. Artificial intelligence for insurance promises solutions to some of the industry’s most pressing pain points. Forward-thinking carriers are already reaping the benefits.
Catastrophes and Artificial Intelligence Insurance Solutions
For the most part, insurers do well with customer experience during the claim process. A 2018 JD Power survey shows customer satisfaction rates for claims handling have been on the rise for several years. However, in some regions of the country, satisfaction scores plummet. The report points to Florida and Texas – two states often hit with hurricanes – as having below average satisfaction ratings.
The data is clear. If carriers seek high customer experience ratings across all its markets, catastrophe claims handling must be addressed. In this capacity, A.I. and drone solutions shine. The technology allows carriers to scale quickly to meet demands for a catastrophe and provides adjusters with fast, reliable data on damage.
Top carriers have noticed. Artificial intelligence and drone solutions for insurance were a significant part of the response to last year’s Hurricane Florence. Long before it was safe for adjusters to enter flooded areas, drones captured imagery and data and fed it back to adjusters who were able to review and settle claims without ever setting foot in the catastrophe zone.
Claims Processing Time and New Customer Expectations
One of the most compelling stories involving claims and artificial intelligence insurance solutions involves the startup Lemonade. The company settled a 2017 claim in three seconds. The policyholder filed the claim after losing his winter coat. Lemonade’s A.I. bot analyzed the information, determined there was coverage, found no fraud indicators, and paid the claim.
The story may sound like a marketing stunt, but it raises the question: If Lemonade can settle a claim for a coat in three seconds, what are the implications for other carriers?
The growing abilities of A.I. coupled with increasing customer expectations mean it makes sense for carriers to embrace the technology-driven solutions. Currently, most major carriers can’t create Lemonade-like instant settlements, but there is potential. Settling a roof claim, for example, may take the unaided adjuster weeks or months, but with the use of A.I.-powered inspection platforms, carriers can turn around a fully adjusted claim in a few days. For those who employ the technology, A.I. delivers a triple competitive advantage – more efficient claims handling, lower loss adjustment expenses, and improved customer experience.
Predicting Losses and Setting Reserves
Among artificial intelligence insurance programs, predictive data analytics is also making a wave among the major carriers. Accurate loss prediction helps carriers sharpen underwriting and set appropriate reserves. A study by A.M. Best asserts carriers who use predictive data analytics to help form risk management strategies are more competitive than those who don’t. Further, the report notes carriers who don’t embrace the technology will suffer in the coming insurance market.
Claims-Focused A.I. Strategies
Artificial intelligence insurance technology has the promise to deliver efficiency and savings across carrier operations. However, focusing A.I. directly on the claims process with chatbots, drone solutions, and inspection platforms may be the most impactful approach. Claims handling has the greatest impact on customer experience, and it is customer experience that matters most to a carriers’ bottom line.
With A.I. at the center, many insurtech companies have made it their mission to help carriers do more with their data. Guidewire is helping carriers leverage machine learning for large claim data analysis. Duck Creek has partnered with vendors to create solutions that identify fraud and risk. Loveland Innovations helps carriers more quickly gather high quality claim information using automate drones, then powers near-real-time damage analysis with A.I. and deep learning tools. The benefits of A.I. are boundless, and wise carriers should be considering where it fits in their organizations.
Loveland Innovations turns roof and property data into actionable information for carriers. Interested in learning what A.I. can do for you? Request a demo.
Bruce is the VP of P+C Insurance at Loveland Innovations. He’s a battle-hardened sales and marketing professional who has spent the bulk of his career focused on providing incredible services and technologies to the insurance space. Currently, he’s leading the charge in putting the latest drone tech, A.I., and analytics tools in the hands of carriers and adjusters across the U.S. In his spare time, Bruce is a hobbyist drone pilot, a photographer, and an outdoor enthusiast who loves spending time with his wife and six wonderful children.All stories by: Bruce Crankshaw