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How automation transforms motor insurance with global statistics

The introduction of artificial intelligence and digital transformation technologies in the finance, banking, and motor insurance industry has led to the rise of the hyper-automation market, which is expected to be valued at nearly $600 in 2022. While the insurance industry was a late adopter of all of these technologies, in recent years automation has brought transformations that allowed changes in both how claims are made and, in the speed, they are handled in. Artificial intelligence has allowed motor insurance companies to combat fraud cases and minimize losses. These are only a few of how automation and digital transformation have so far affected the motor industry.



Best use cases for automation in the insurance industry


1. Claims processing


The biggest difference brought by artificial intelligence in the motor industry has to do with the speed and efficiency of claims processing. Before the digital transformation of this process, it would usually take days for an insurance agent to gather the plethora of documents and evidence required to process the claim. Nowadays, that has changed as customers can use online apps and websites to file all of their claims online. By guiding customers through the simple automated process all of the documents are submitted at once and depending on the size of the claim the system can even approve the claim without an agent checking it. If an agent is called to check the claim, then their work will be reduced by 80% as all of the checks and gathering of data would have been digitally completed.


2. Policy management


Policy management operations, which normally include both policy issuance and updates have also been greatly altered after artificial intelligence and digital technologies were introduced. For example, policy issuance which used to be fully manual work can now be completed with automated systems that can fill in the information and update the internal systems as necessary. Automatic messages can also be sent to customers when needed. As such, agents are only required to come on board for more specialized cases.


4. Underwriting

Automated underwriting is a digital transformation that has allowed for increased accuracy and speed. This process involves data gathering and analysis to reduce potential risks associated with a certain motor insurance policy. The data gathered and reviewed can pertain to internal systems updates, loss runs assessments and customer claims history records.


Benefits of intelligent process automation in insurance:

  • Unstructured data processing

The benefits of artificial intelligence and digital automation will often relate to gathering data and documents and organizing those as necessary for a claim to be processed faster. Digitally collecting all of this information will usually be less time-consuming and any inconsistencies in the documents will be picked up immediately.

  • Integration with legacy applications

For years legacy applications have been used in the motor insurance industry for handling business operations. For companies that have used certain software for years switching to something new can often be costly and can disrupt operations. This is why digital transformation programs like those offered by Motori integrate fully with the already existing systems. This allows for a faster and easier transition.


  • Additional benefits and scaling opportunities

In general, digital transformation and automation can reduce the use of human labor and thus, decrease the costs of handling claims by close to 40%. The processes are not only faster with automation, but they can also be up to 90% more accurate. Finally, because automation allows for quick updates, regulatory compliance is easier to ensure.


Conclusion


Automation is the key to unlocking the full potential of the processes of motor insurance companies by both speeding things up and making everything more accurate. A reduction in the costs of operation along with the security of handling fraud claims efficiently can help companies increase their revenues by close to 50%. With so much potential, it is no wonder that the digital transformation of the motor insurance world is so imminent and desired by customers and companies alike. Motori has helped many motor insurance companies to drive growth in the digital era. To learn more about how you can transform your business, contact us today.

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