Title

AWS re:Invent 2022 - Why use AI in insurance underwriting and claims? (PRT271)

Summary

Accenture and AWS have partnered to create AI solutions for insurance underwriting and claims.
AI is recognized as transformative for insurance, but adoption is slow, with only 44% of executives feeling they are effectively leveraging AI.
The solutions focus on improving decision-making accuracy in claims and underwriting, which directly impacts economic performance.
Macro trends like inflation and changing investment income are influencing insurance economics.
High churn and shopping behavior in insurance require efficient underwriting to handle increased activity without corresponding yield.
Claims dissatisfaction often stems from process complexity and cycle time rather than settlement amounts.
The solutions aim to streamline processes, reduce inefficiencies, and improve customer experience.
AI solutions are built to integrate with existing workflows and systems, focusing on modularity and connectivity.
The underwriting solution includes intelligent email processing, content extraction, data enrichment, and decision support.
The claims solution focuses on fast-tracking eligibility checks, seamless intake, and efficient adjudication for flow-through claims.
Regulatory compliance, explainability, and ethical considerations are integral to the AI solutions.
The solutions are designed to augment human decision-makers, not replace them.

There is a significant gap between recognizing the potential of AI in insurance and effectively implementing it.
The insurance industry is heavily regulated, necessitating AI solutions that are ethical, responsible, and explainable to regulators and stakeholders.
The economic case for AI in insurance is grounded in improving the accuracy of decision-making in claims and underwriting, which can lead to better loss ratios and net premium growth.
Customer experience in claims is a significant focus area, with opportunities to improve satisfaction through digital deflection and proactive communication.
The adoption of AI solutions requires careful integration into existing workflows to ensure they are embraced by underwriting and claims professionals.
The underwriting AI solution presented is designed to handle complex information and streamline the underwriting process, particularly in commercial lines.
The claims AI solution is tailored for high-frequency, low-severity claims, aiming to keep as many claims as possible on a "happy path" for quick resolution.
The solutions leverage various AWS services, including machine learning and AI tools, to process and analyze data efficiently.
Human oversight remains crucial, with AI serving as a tool to enhance, not replace, the expertise of underwriters and claims adjusters.