Latest survey suggests insurers see AI’s potential in claims, but investment hurdles and legacy systems slow adoption.
A new poll has revealed that while confidence in artificial intelligence (AI) within claims management is surging, investment in AI-driven solutions is lagging behind industry expectations.
According to the survey, which was conducted by by insurance technology provider RDT, 85% of insurers think AI and machine learning will have a big impact or even completely change claims processes in the next five years. The key benefits insurers anticipate include faster claims processing, lower costs, and improved fraud detection.
Despite this optimism, AI adoption is still in its early stages. Only 7% of insurers have made large investments in AI-powered claims systems, while 47% are still in the planning phase. While many insurers are optimistic about AI, they still face challenges including budget limitations and difficulties in integrating AI with legacy infrastructure.
The poll also found that 74% of insurers believe AI will be good for both customers and brokers. This fits with an industry-wide move towards data-driven decision-making and customer-centric processes. In addition, 75% think AI will create a more personalised claims experience, making the process smoother for policyholders.
Joe O’Connor, deputy CEO at RDT, highlighted the need for strategic investment to unlock AI’s full potential in claims management:
“AI’s potential to transform claims management is undeniable, but turning potential into reality requires clear investment strategies. Insurers see the benefits – from streamlining claims to improving fraud detection – but execution remains a hurdle. At RDT, we’re developing AI-powered solutions that integrate seamlessly, helping insurers unlock efficiencies, speed up claims handling, and enhance customer satisfaction,” O’Connor said.
Image credit: Photo by Possessed Photography on Unsplash
Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk
