Written by Andy MacIver, Claims Technical Specialist Lead, Legal & General
This is being written shortly after Christmas, and at that time of year we are always reminded of the importance of the ‘Human Touch’. Whether that is seeing family and friends, enjoying a Christmas get-together with colleagues, or even buying gifts for loves ones, it serves as a reminder that as individuals we are sociable beings, and that no form of technology could ever replace this. With this in mind, and the accelerating societal move towards the next step in digitisation – artificial intelligence (AI), it’s timely to reflect on how the claims industry has evolved and where it’s headed next.
The digital transformation of claims
Since the early 2010s, the claims industry has undergone a digital transformation. Paper files and manual processes have given way to electronic records, online portals, and advanced digital storage. Today, customers expect to manage every aspect of their claim digitally, all the way from the initial notification, to getting interim updates, and communicating with assessors.
Based on L&G research, over 70% of our customers prefer to start their claim online, and in addition to this, claimant feedback, especially from younger generations, shows a clear expectation for 24/7 accessibility. Digital solutions empower customers to navigate the often-difficult claims journey at any time, all year round. Online claim submissions within L&G, now utilised across all claim types, has reduced the average claim timeline by almost two weeks, offering a more efficient and transparent experience, and giving people the flexibility to manage claims when it suits them.
In addition, at L&G we have utilised data models to enable faster assessment of claims and ensure better customer outcomes. We use enhanced data analytics through our claims assessment model to help speed up critical illness claims by reducing the need for extra medical information and delivering faster customer responses.
The role of AI going forward: efficiency, insight, and empathy
Many of us probably hear about AI on daily basis through a multitude of different media channels. We are surrounded by it daily, often without knowing it – navigation apps, smart home devices, weather forecasting, and even the autopilot function on an aircraft, are all examples of sophisticated AI systems on which we now rely on daily.
Even with the significant advancements in technology referenced within the previous section, we all still wrestle with ongoing challenges such as awaiting and then reviewing lengthy medical records, providing customers with satisfactory updates at a point which suits them, and the growing risk of more sophisticated fraud tactics. This is very much where AI can help going forward and potentially mitigate some of the ongoing challenges that exist across the industry. These potential wins include, but are not limited to some of the following:
- Faster Claim Processing through things such as automated document ingestion and validation, and straight through processing of low-risk claims.
- Fraud detection and risk management via predictive analysis tools, checking for document alteration, and scanning for repetition of medical information across multiple claims.
- Using document summarisation tools to speed up the assessment of long and complex medical information.
- The use of advanced 24/7 chatbots and virtual assistants to give customers more insightful updates on their claims.
- Optimising resource by determining not just the volume of claims, but the likely time spend required on each one.
Balancing technology and the human touch
While digitisation, and the growth of AI bring efficiency and improved customer experiences, they also introduce new challenges – ensuring data privacy, regulatory compliance, and above all, preserving empathy. The claims journey often coincides with moments of vulnerability and uncertainty. To me, as a claims industry we need to retain the ‘Human Touch’ element and ensure that we are always engaging with customer on a personal level. Whether that be putting a customer’s mind at ease following the onset of a claim, answering questions during a claim when they are anxious about the outcome, or most importantly communicating that final decision, this should generally always be from a friendly voice.
Technologies that support teams and remain sensitive to the emotional context of customer interactions will be most effective. Developments that enhance insights, free up resources, and empower colleagues to deliver compassionate, efficient service will drive continued progress in the sector.
Looking ahead
The protection industry’s growth brings increased reliance on claims assessors to administer and adjudicate claims effectively. By leveraging AI and digital tools, insurers can ensure that professionals have the capacity to enhance personalised customer journeys and keep the industry sustainable for the long term.
While technology will continue to transform the claims landscape, the enduring need for the human touch remains. The future belongs to those who can balance innovation with empathy, delivering both efficiency and genuine compassion.
