By Ravi Mathur
The insurance claims settlements/redressal industry has emerged as an important domain in recent years by facilitating the easy resolution of customers’ insurance grievances. In the insurance industry, where businesses compete for customers, the claim-settlement ratio is one of the most important factors in helping customers choose a provider. The latest technology trends have disrupted the insurance claims industry remarkably. Customer expectations have increased at par with the digital age and it has become imperative for the diverse insurance settlement platforms to adopt the latest technology to compete and remain in the market successfully.
Some of the most revolutionary technologies in the insurance redressal sector include artificial intelligence (AI), machine learning, and robotic process automation. As compared to the conventional approach used earlier by the redressal companies for claims processing, contemporary technology like AI incorporates clever programming to discover specific claim patterns at random or on a large scale. The best part is that the insurance redressal procedures can be executed well with the latest technology without raising operational costs or consuming an extra amount of time. Machine learning algorithms, for instance, are utilised in fraud detection and tracing abnormalities in insurance claims which significantly help in the appropriate and quick resolution of insurance grievances.
Artificial Intelligence (AI)
The most revolutionary technology used in the contemporary insurance redressal sector is AI (Artificial Intelligence). Computer systems have evolved remarkably due to AI and machine learning. With robotic process automation, the capacity of operating systems has been enhanced to process claims efficiently. AI has facilitated unprecedented prospects for disruption in the insurance industry. Automation opportunities for claims processing have expanded due to AI which has resulted in faster and error-free grievance resolutions.
The articulate utilisation of machine learning algorithms for fraud detection in insurance policies has altered the way the claims settlement industry works. Businesses are implementing AI-centric technologies at an increasing rate to monitor and prevent fraud, handle claims, and improve process efficiency. The immense potential of Artificial Intelligence (AI) is expected to work wonders for insurance redressal platforms and customers by transforming the paradigm of operations.
IoT (Internet of Things) Technology
One of the prominent innovative technologies that have transformed the insurance claims settlement industry disruptively is IoT. The Internet of Things (IoT) refers to the network of physical objects, “things,” that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. IoT technology and telematics provide real-time risk monitoring, which has been very helpful for the claims settlement platforms to resolve claim settlement issues about the automobile, P&C (Property & Casualty) and health insurance policies. Telematics is a branch of IoT that combines telecommunications and informatics that allow the flow of information. The combination of Telematics with IoT has been groundbreaking for the insurance claims settlement industry.
Data management and its accurate analysation are crucial for the success of the insurance claim redressal industry. Data analytics play a vital role in the identification of issues for redressal purposes. Data analytics, for instance, enables insurance claims settlement platforms to precisely forecast policy patterns, improve decision-making, cut operational costs, better claims triage, and even identify new trends. The claims procedure has been one of the important issues for the insurance sector.
Fraudulent insurance claims can be conveniently identified with the aid of technology which notably enables the usage of sophisticated algorithms for data evaluation. The assistance provided through the latest technology of data analytics not only helps the insurance redressal platforms in faster resolution of insurance claim-related issues but also in the early detection of similar issues. The digital efficiency provided by Data Analytics leads to smoother and quicker client servicing which is a boon for any insurance redressal platform.
Digital innovation and disruptive technologies like AI, IoT, cloud computing, predictive data analytics etc. have drastically influenced the execution and procedural practices of insurance claims redressal platforms in recent times. The above-mentioned new-age technologies are here to stay for the overall enhancement of the insurance claim settlement industry. Innovative technologies are contributing commendably to the diligent operations of insurance claim settlement platforms which subsequently will lead to a praiseworthy customer experience and better resolution of insurance-related grievances.
(The author is co-founder and CTO ( Chief Technology Officer) at Insurance Samadhan. Views expressed above are personal)