By: Balachander Sekhar, Co-founder of RenewBuy
Claims and fulfillment are the most critical aspects of any insurance product. Insurance is largely dominated by the traditional model, and claim settlement is a long and tedious process for both consumers and insurers.
Making timely and error-free decisions is a huge challenge due to risk and fraud-related issues, resulting in excessive delays in settlement. Some 38% of health insurers reportedly settled claims within an average of 5 business days; further delays in settlements have been reported. Covid has been an important witness to the country’s urgent health crisis. In the case of life insurance, the beneficiaries don’t even know they are the nominees for the life insurance policy.
As such, claims remain a major challenge for the category, impacting both consumers and insurers. Today’s technology integrations that help consumers operate easily, risk-based personalized automation solutions, risk and fraud intelligence, embedded distribution and sales intelligence, are the keys to increasing insurance penetration in the country and catering to changing consumer insurance needs .
RenewBuy recently acquired Artivatic.AI, which aims to improve claims issues and provide improved automated claims evaluation, real-time quality control, fraud and risk assessment, and claims settlement with minimal labor and error. Insurers using Artivatic’s deep technology have seen policy issuance turnaround time reduced by 90%, claims turnaround time by 70%; anti-money laundering, risk and fraud reduction by 15%.
Insurers are using artificial intelligence and data analytics to create accurate individual risk profiles. All of this makes the underwriting process seamless, and when a claim is made, the risk profile can be quickly verified, significantly reducing the turnaround time for claims resolution. As a result, more and more insurers should jump on the tech bandwagon to tackle the country’s ingrained claims problems.