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How technology can reduce turnaround time for insurance claim settlements

Insurance has majorly been led by a traditional model, where claim settlement is a long and tedious process, both for consumers and insurance companies.

Claim settlement and fulfillment, form the most crucial aspect of any kind of insurance product. Insurance has majorly been led by a traditional model, where claim settlement is a long and tedious process, both for consumers and insurance companies.

Due to the risk and fraud-related issues, making prompt decisions without errors is a massive challenge, leading to inordinate delays in settlement. As per reports, around 38 percent of health insurance companies settled claims on an average in 5 business days; there have been reports of further delays in settlements. Covid has been a huge testimony to the emergency health crisis in the country. In the case of life insurance, there have been cases where beneficiaries are not even aware that they are nominees of the life insurance policy.

Thus, claim settlement remains a key challenge for the category, which impacts consumers and insurers. Technology integrations are today, helping consumers with ease in operations, risk-based personalized automated solutions, risk and fraud intelligence, embedded distribution, and sales intelligence, which are the need of the hour for increasing the insurance penetration in the country and for catering to changing consumer insurance needs.

RenewBuy recently acquired Artivatic.AI with the aim of improving claim settlement issues and offering improved automated claims assessment, real-time QC, fraud and risk assessment, and claims settlement with minimal labor and errors. Insurers using Artivatic’s deep technology have witnessed, 90 percent reduction in turnaround time for policy issuance, 70 per cent reduction in claim turnaround time; 15 percent reduction in AML, risk, and fraud.

Insurance companies use artificial intelligence and data analytics to create accurate individual risk profiles. All these make the underwriting process seamless, and, at the time of claim, the risk profiles can be verified quickly, dramatically reducing the turnaround time for claim settlements. Hence, more and more insurance companies should join the tech bandwagon for solving deep-rooted claim settlement issues in the country.

Source : Financial Express