AI could cut cost of running insurance by eliminating repetitive work: Report
The report said AI is being embedded across underwriting, customer service, fraud detection, claims processing and internal operations. Instead of replacing insurance professionals, AI is being used to handle routine tasks so employees can focus on decisions that require judgement and experience.
Artificial intelligence is reshaping the insurance industry by streamlining repetitive tasks, according to a report from Get Covered, an insurance technology firm. The technology is being integrated into various aspects of insurance operations, including underwriting, customer service, fraud detection, claims processing, and internal functions. Rather than replacing human workers, AI is designed to handle routine tasks, allowing employees to concentrate on more complex, judgment-driven decisions.
Key areas where AI is making a significant impact include analyzing documents, identifying missing information, addressing routine customer inquiries, organizing claims documentation, preparing reports, and aggregating customer and risk information for underwriters. AI-powered customer service can manage inquiries 24/7 before escalating complex issues to licensed representatives. This automation now covers up to 80% of repetitive customer contacts, freeing up human agents to focus on high-value interactions.
In claims processing, AI is proving invaluable. Computer vision models can assess vehicle damage from uploaded photos, while generative AI assists adjusters in organizing documentation and drafting reports. AI also aids in document analysis, detecting missing information before human intervention. Importantly, AI systems are not replacing insurance professionals; they are merely eliminating repetitive administrative burdens, enabling employees to focus on higher-value, judgment-intensive tasks.
Brandon Tobman, CEO of Get Covered, emphasized that AI is not intended to replace insurance professionals but to remove routine work so employees can concentrate on more complex, value-adding decisions. In underwriting, AI assistants assist by consolidating information and suggesting next steps, rather than requiring underwriters to manually review numerous documents and disparate data sources. The responsibility for final underwriting decisions remains firmly with human experts.
AI is also playing a crucial role in fraud prevention. Insurers are leveraging the technology to detect unusual behavior and inconsistencies that might be overlooked by humans. However, the report acknowledges that fraudsters are exploiting the same AI technology to create sophisticated fake documents, manipulated images, and synthetic identities.
Looking ahead, the report projects that AI will be integral to the operating model of U.S. insurance companies by 2026. Insurers are embedding AI across customer service, claims, underwriting, fraud detection, and internal operations. Companies like Allstate and Progressive have expanded AI-powered customer service capabilities, while USAA has partnered with Google Cloud to develop computer vision models that predict vehicle damage for individual repair or replacement parts based on photographic evidence.
The broader trend is towards AI systems that tackle routine work, while human employees retain responsibility for complex decisions, judgment, and accountability.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
