Insurance Innovation of the Month: AI-powered claims adjusting by Ageas

Ninety’s “Insurance Innovations of the Month” feature contains regular snapshots of real and recent insurance innovations, based on conversations with the innovators behind them. They are drawn from anywhere in the world, and from all categories of insurance. If you’ve got an innovation you’d like to highlight, drop us a line at ninetymarketing@ninety.com.

• Insurer(s): Ageas.
• Market(s): UK & beyond
• Insurance type(s): Auto / motor insurance

Problem

Ageas are continuously looking for ways to improve the claims experience, there were a couple of areas they were looking to improve. First, minimizing inconvenience for the customer by providing clarity on what happens next as quickly as possible. Second, using Ageas resources in a more effective way by getting the cases that need intervention to the right people quickly and in return automating approval for other cases resulting in improved turnaround and cost control.

Solution

Ageas chose to partner, rather than buy or build. Their choice, Tractable, develops software for accident & disaster recovery. It does more than cars, but had the capability and focus that Ageas required. Working together in Ageas’ solution centers, where photos from normal claims are manually processed and estimated, they used the technology to automate the process. In particular, they configured the tech to determine whether accidental damage could be repaired, or whether it had to be replaced. The solution also suggested the best method of repair, and generated an estimate of the cost. From the customer’s perspective, an app helps the customer to take high-quality images of the damage, guiding them through the process to avoid having to come back to them again afterwards. The technology then assesses the damage, like a human accident appraiser would, generates an estimate, and sends the information to the customer and claims handler. Both are given relevant information and able to engage immediately. For the claims handler, that means making an immediate, informed decision. For the customer, it means knowing straight away whether their car will need to be repaired or replaced. They can also be guided to specific repair networks if relevant.

Outcomes

For Ageas, the process reduces operational costs on every claim, using the software to inform decisions, and avoiding unnecessary data-collecting loops back to the customer. The software is also bringing down indemnity cost of claims, learning to make more decisions in favor of repair, rather than expensive replacement. A further benefit, even if harder to measure, is on customer satisfaction. For the customer, the process is now fast, efficient, one-time, and simple. That critical period of uncertainty is reduced to virtually an instant. Looking ahead, Ageas are thinking about expanding and doing more with the pilot. For now, the UK has led, implemented and piloted the technology. Ageas is in the process of exporting that innovation to other countries in their group, and are in pilot mode with some of them to see how the solution scales. Beyond that, Ageas are interested in what the applications of the technology could be beyond car claims.

Social impact

As a social, for-purpose business ourselves, Ninety is always looking for the social, human or environmental impact of new ideas in insurance. This innovation has a clear positive social and human impact, helping customers in their moment of need, reducing the period of traumatic uncertainty, and getting them back up and running faster.

Tips to other innovators:

• Partner with a player that has expertise in a specific field, and work together as a team. Put engineers together: ours, and theirs.
• Be very honest when reporting success. Be very clear on performance before, and after. Not showing just how great AI software is, but tangibly show business benefits to the management.

Categorization for insurance innovation portfolio planning:

Ninety Ten Big Ideas: this is an example of Ninety’s “Customer Interactivity” and “Smarter Back-Office” Big Ideas.

Ninety Ten Types of Insurance Innovation: this innovation combines the following Ten Types categories – 1) Operations & Claims, and 2) Customer Experience.