The LMA is undertaking some exploratory work that is looking into the feasibility of introducing automated learning/robotics into the London market: technology that could support and enhance the roles of claims handlers and managers, allowing the opportunity to refocus and distribute resources and time to more valued tasks, whilst improving claims service and the customer experience.
Developments in this technology are enabling insurers to speed up the claims process and remove the most labour-intensive aspects of claims handling.
Start-up insurer Lemonade claimed earlier this year to have set a new record, approving and paying a real personal lines insurance claim in just three seconds. In those few seconds, a claim bot reviewed the claim, validated it with the policy, carried out fraud checks and arranged the claim settlement to the policyholder.
As we are beginning to see, automated technology can make the insurance business more efficient. It is a matter of when, not if, carriers within the London market will look to adopt this technology.
In the London market, automation/robotics could be used to make pre-adjustment checks, triage claims, validate data or automate claims responses/agreement based on rules and the risk appetite set by each carrier.
Automation can also be used to enhance the notification and communication of claims during the life cycle, improving the message and notification to brokers and customers.
The claims process is often described as the ‘shop window of insurance’ and the Lloyd’s and London market has a large amount of talent in the claims community. This talent needs to be supported with the right tools and technology to enhance future roles as claims handlers, analysts and service providers of a product that has been bought by a policyholder or client.
Now is the time for our market to modernise and embrace the possibilities of automation and robotics.