When it comes to homeowner's insurance, customers are quick to file a claim if they experience any type of damage to their home. However, carriers are at risk of losing premiums from these dissatisfied claimants if they do not handle the situation in a timely and proper manner. Our Texas attorneys at The Voss Law Firm discuss the importance of timely communication with insurance following a claim and how the insurance industry is evolving.
One-Third of Claimants Are Not Fully Satisfied
A new study from Accenture has found that poor claims experiences are costing insurers billions of dollars in lost premiums. Translating the level of dissatisfaction into an eye-opening dollar figure, Accenture said $170 billion in premiums are at risk over the next five years as these customers may switch carriers as a result of unsatisfactory claims experiences. The research report published last week found that one-third of claimants were not fully satisfied with their most recent insurance claims experience. The report added that speed of settlement is a clear pain point for policyholders.
The research report contains a chart which illustrates rising levels of dissatisfaction as the time to settle increases. The data shows that while just 17 percent of those whose claims were wrapped up within two days were dissatisfied with the speed of claims handling, once the duration went beyond a week, the dissatisfaction percentages rose to 31 percent and higher (reaching 39 percent for three months or more). This suggests that there is a clear link between the length of time it takes to settle a claim and customer satisfaction levels.
Could AI be the Answer?
The report, "Why AI in Insurance Claims and Underwriting," draws insurers' attention to the benefits of artificial intelligence, which the report authors describe as transformative technology. Noting the aging of the insurance workforce is happening at the same time as advances in AI, they assert that the time is now for insurers to invest in AI capabilities—stressing, however, that AI should be used "responsibly, in tandem with humans."
“AI solutions can improve settlement time by enabling digital and self-service claims processing that dramatically enhance customer experience and accelerate processing,” the report says, noting that “many leading insurers have invested heavily into this aspect, creating omni-channel environments that leverage the use of chat bots, rich text messaging, [and] guided scripting for agents.”
The report provides an overview of how AI is being used in the insurance industry, with a focus on the life and property/casualty segments. It includes survey responses from claims executives and underwriters in 13 countries, detailing the benefits and challenges of AI implementation. The report highlights a number of AI use cases in both the life and property/casualty segments, providing insights into the potential of this technology in the insurance industry. Overall, the report provides a helpful overview of AI in insurance, and will be of interest to those working in this sector.
“Incorporating AI and automation into the underwriting workflow is a prime opportunity to reduce time spent on administrative tasks, manual processes, and redundant data inputs,” the report says. Describing an “intelligent underwriting solution” as one that includes submission ingestion, data enrichment, triage, appetite fit and propensity-to-bind scoring, the report notes that this kind of AI allows underwriters to focus time on core activities like risk evaluations of submissions, which in turn leads to claims being resolved quicker.
Do You Have a Claim?
If you’re tired of fighting with an insurance company, the Voss Law Firm can help you get the compensation you deserve. Call us at 1-888-614-7730 or complete our contact form today to get answers to your questions, or start reading your copy of our free book, Tricks of the Trade: How Insurance Companies Deny, Delay, Confuse, and Refuse.