Lessons About AI in Property and Casualty Claims

The Property & Casualty (P&C) insurance industry is undergoing a seismic shift, driven by the rapid adoption of artificial intelligence (AI). At Loveland Innovations, we are proud to be a part of this shift and equally grateful to have a front-row seat to what’s happening.

The claims process has traditionally been labor-intensive, time-consuming, and prone to human error. But today, AI is streamlining operations, enhancing accuracy, improving customer satisfaction, and enabling much-needed improvements to the claims experience.

Here are a few examples of AI making a significant difference:

• Claims automation. Through natural language processing and machine learning, insurers can automatically extract relevant information from claim submissions, validate policy coverage, and make initial liability assessments.
• Fraud detection. By analyzing vast datasets and identifying patterns that may indicate suspicious behavior, AI systems can flag potentially fraudulent claims.
• Damage assessment. Carriers analyze photos of damage with AI, allowing adjusters to make assessments more quickly and with increased confidence. This is happening across photos captured on phones, with drones, by planes, and even by satellites.

It is in this last category that we have deep experience. We introduced our AI-damage detection product in late 2017, and it is used by hundreds of companies (carriers and roofing contractors) as part of their damage assessment and claims processes. Over the years, we’ve seen AI solutions come and go, some come and grow, and we’ve spoken with hundreds of companies about how AI can be used in insurance. As such, we’ve learned a thing or two about how to be successful when implementing AI.

Here is an important lesson we’ve learned: Be very intentional with what AI either automates and/or augments, and in what it replaces.

1. Automate. A benefit of AI is that it can automate simple, time-consuming tasks: creating reports, filling out basic information, and generating summary findings. If a task doesn’t require a judgment call, it may be a good candidate for AI to automate it.
2. Augment. Some parts of the claim process require the judgment and human touch to get right: making a final determination on what is or isn’t damage, responding sensitively to a homeowner, and handling a dispute. For these types of decisions, consider how AI can help to augment your judgment. This is often reflected in how AI quickly provides a deeper or more thorough analysis than what you could do yourself.
3. Replace. If you are intentional with what AI can automate and how it augments your judgment, you can then begin determining what steps in your process AI can replace.

AI is not replacing insurance professionals—it’s empowering them. With AI, professionals can complete tasks quickly, enabling them to focus more time on parts of the claims process that require empathy, negotiation, and nuanced judgment.

The result is an improved work experience for the professional and a better claims experience for the homeowner. Win. Win.

The above is definitely an oversimplification of what to consider. We’d love to help you plan your journey with AI. Please reach out if you want to talk to one of our experts. We stand ready to help!