A prospective client asked us some great questions about the future of IA in claims and at ClickClaims.
“Things are changing so fast in the technology world. I have been reading up on anticipated advancements and the use of AI. It is anticipated that by 2030, 31% of the work currently completed by employees will be handled by artificial intelligence. Also, noted is that scam artists are using AI to create more malicious code that will prevent warning signals and afford them faster access to interact and secure information. No doubt, AI is moving fast and, while it
might not affect us today, it is vital that our data remain secure and that we reduce our vulnerability as much as possible. What is ClickClaim doing to keep pace with this and other advancements within our industry? I simply think it would be helpful to understand how ClickClaim views the future and how they plan to address these areas.”
What great questions! This company proved that they were certainly doing their due diligence when researching claims management systems.
Allow me to share the response from Founder & CEO, Thomas Brown:
Great questions, for which I think no one has all the answers. Most of us “claims people”, like everyone else, know changes are coming. I believe it’s here already; and yes, it will flourish as it improves. I do believe that AI, along with several other emerging and maturing technologies will continue to replace human activities related to adjusting. That displacement began five or more years ago, as we have witnessed with the dramatic shifts to remote/self-service inspections, virtual adjusting, drones, automated file reviews, and bots (for taking FNOL and even claim support). It’s everywhere, already. Yet, still much in its infancy. It’s unrefined and largely imperfect – most tech is until it isn’t. I believe we will see dramatic changes
over the coming 3-5 years.
As to the specific changes and what that means for claim handlers, the numbers I have seen are that roughly 30% of all PC claims can be handled FNOL-to-disposition, with straight-through-processing (STP), meaning very little, if any human resources needed. It’s widely agreed that such claims are “high frequency, low touch” meaning low value, clear-cut claims that simply do not require humans. Certainly, that benchmark will vary by LOB, coverage/limits, peril, etc. I believe it will happen before 2030, by at least a few years. Adjusters who understand this and hone their skillsets toward the other 70% of claims will always have job security.
E-Claim was the first to launch a cloud claims management system for property claims. One of our six core values is Innovation. We believe those who embrace change and understand where the market/industry and the underlying technologies are headed, will prosper. Those who do not will fail, sadly. It’s always been this way, but the rate at which change is happening has never been as rapid as it is today.
So, what does that mean for IAs and tech vendors like us? I’ve always been forward-looking and understood that when and where tech can improve any process, it will. IMO, that does not mean tech can, will, nor should replace humans for most of what we do as claim handlers. Rather, tech should make us more efficient, reducing the manual, menial tasks that makeup so much of our day. Adjusters should become better at core adjusting skills and embrace any tech that reduces the time they spend on admin tasks. They should understand and utilize any tech that allows them to do more “adjusting” and thus increase their worth and earnings. I also believe the industry is moving toward more specialization, which will include changes to assignment scope (more inspections, less admin). Our carrier clients are even looking at workflows that significantly limit the typical assignment to photos, and scope and letting remote staff create the estimate and manage the insured communications. That’s dramatic, but it is what I am seeing.
At E-Claim we follow the DRIP Principal (chapter 2 of a book written by my business coach Dan Martell, titled “Buy Back Your Time”). It’s a great read and promotes using the hours we each have, daily, to do your most important work. We design our solutions to do just that – to make our clients the most efficient at doing more of the work that makes them valuable. We are fanatical about eliminating “extra steps” and we are highly focused on having the system automate repeat tasks. We allow users to do most core operations in batch (dispatch, emails, SMS, auto-logging, diaries, emails/documents processing, reopens/reassignments, and integrations with other core systems). AI will play a very significant role in such process changes. E-Claim will be at the forefront of these changes, and our clients will benefit from this.
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Chief Revenue Officer