The evolution and transition to no-touch insurance claims 

April 23, 2024

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By Vaneet Gupta, Head of Business Systems and Applications, Australia

In the ever-changing landscape of insurance, the future is unfolding before our eyes, and at the heart of this transformation lies the rise of technology. One of the most notable advancements reshaping the industry is the emergence of no-touch claims—a game-changer powered by artificial intelligence (AI) and automation. In this blog, I explore this rapidly evolving concept in the insurance industry and its implications for both insurers and policyholders alike.

The concept of no-touch claims revolves around leveraging cutting-edge technology to streamline the entire claims process. From the moment a claim is filed to its resolution, AI algorithms and automation take centre stage — revolutionising the traditional approach to claims management.

At the core of no-touch claims is the seamless integration of technology into every stage of the process. At a macro level, here’s how this works functionally:

  • Automated data collection: Imagine taking photos of property damage with your phone. AI technology can extract crucial details from photographs, eliminating the need for extensive paperwork and reducing the risk of errors.
  • AI-powered assessment: Sophisticated algorithms can analyse photos and data to determine the severity of the claim and even generate initial repair estimates tailored to the policyholder’s specific circumstances.
  • Streamlined approval and payment: Based on the AI assessment, simpler claims could be instantly approved, and payouts automatically processed based on predefined rules. This not only accelerates the resolution process but also minimises the need for human intervention.

The benefits of no-touch claims are manifold, both for insurers and policyholders:

  • Faster resolution: Wave goodbye to the old days of waiting for claim processing. No-touch claims system ensures a faster resolution, helping you move forward without delay.
  • Enhanced convenience: File your claims with ease, anytime and anywhere. Forget the hassle of tracking down adjusters or dealing with complicated phone menus.
  • Reduced costs: The automation of administrative tasks translates into cost savings for insurers, enabling them to allocate resources more efficiently which could mean more competitive premiums for you, the policyholder.

Although no-touch claims offer considerable benefits, the transition involves several challenges and key factors that insurance organizations need to contemplate prior to initiating this transformation which includes:

  • Data quality and integrity: Ensuring the accuracy and reliability of the data being used is paramount to avoid errors and discrepancies that could compromise the integrity of the claims process.
  • Complexity of claims: While automation excels at handling simpler claims, more complex scenarios may still require human expertise to navigate nuances and intricacies effectively.
  • Regulatory compliance: Adhering to data privacy laws and consumer protection regulations is essential to maintain trust and compliance in an increasingly regulated environment.
  • Customer expectations: Despite the automation, maintaining personalised support and clear communication with customers remains crucial to meet their evolving expectations and foster trust.

So, what does the future hold for insurance claims resolution? The answer lies in embracing a hybrid approach that combines the best of both worlds:

Seamless technology integration

Harnessing AI and automation to swiftly process simpler claims, while reserving human expertise for more complex scenarios where judgment and empathy are indispensable.

Human expertise

Engaging and maintaining a team of skilled adjusters and claims professionals to handle intricate cases, ensuring thorough assessments and personalised support whenever required. 

Transparency and communication

Keeping policyholders informed and engaged throughout the claims process, regardless of whether it’s handled through AI or an adjuster. This fosters transparency and builds trust through clear and timely communication.

No-touch claims are set to transform the insurance process, offering a seamless experience that’s both quick and user-friendly. With ongoing technological advancements, the day for no touch claim management isn’t far off. As we embrace this innovative future, it’s crucial to maintain a balance between cutting-edge tech and the expertise that only people can provide, ensuring fairness and support for every policyholder. 

Tags: AI, AI technology, Artificial Intelligence, aus, Australia, automation, Claims, claims industry, claims technology, Compliance, Data, Digital, empowering performance, Insurance, insurance industry, insurance market, Insurers, Property, Technological advances, Technology