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Rise of Intelligent Document Processing for Auto Insurance Claims

Thanks to the advent of technologically augmented automobiles, insurance carriers now have the advantage of a better-informed, intelligent approach to processing auto insurance claims. The main digital feature that can help auto insurance agencies in gathering the data required to execute a fair and deserved insurance claim is telematics.

Automobiles with Advanced Driver Assistance Systems (ADAS) such as ones equipped with telematics capabilities are expected to reach 180 million in number by 2020. This increase in ADAS is one of the primary reasons as to why auto insurance companies are further down the intelligent automation line than any other type of insurance provider.

Insurance agencies lose millions every year because of fraudulent insurance claims founded on questionable data. As such agencies find themselves inherently susceptible to fraud caused by an inability to either gather or process evidence in an automobile accident. Insurance fraud alone in the U.S. is responsible for a $80 billion loss annually. Gathering as much information as possible from the vehicle as well as external sources can help mitigate the financial loss incurred upon your business due to such illegal activities.

ADAS can provide information on subjects that would not have been possible with a non-connected vehicle. Data such as the nature of the driver’s habits, does he brake suddenly and frequently at high speeds? Does he drive for long periods of time at a high speed? Basically, any sort of information that would make for a more well-rounded insurance claim case.

Telematics can also pave the way for other added services intended at assisting the customer in the event of an accident or vehicular malfunction. A First Notice of Loss (FNOL) is sent out via the car’s telematics system to the owner’s insurance company giving them a real-time update of the situation so they can begin to process the claim in addition to directing a tow truck and car rental towards the GPS location.

The carrier will also be able to view metrics pertaining to the speed of the vehicle at the time of impact, brake levels and impact specifics that can be used to corroborate claims much faster. Premium customer services like these are now available thanks to ADAS role in insurance claims can drive value for your agency. Despite its ability to consolidate various sources of evidence, telematics is still only one part of the picture. Further data pertaining to the captured images of damage, license details, repair approximations, police plus weather reports and not to mention an adjuster’s report are all required.

Rise of Auto Insurance Automation

There is a critical challenge the automation industry faces when it comes to processing reports and documents that are gathered in the process of making an insurance claim. Majority of said documents are unstructured and come in different formats. The volume of unstructured content is growing by 50-60% each year. Insurance companies have opted for a template centered approach along with Optical Character Recognition (OCR) technology to extract data from documents. This however also has its own limitations due to the variation in document formats. Limitations such as these can be overcome by Intelligent Process Automation (IPA) solutions. By using Artificial Intelligence (AI) such as Natural Language Processing (NLP) it can read relevant data from documents and process it. In addition, the Robotic Process Automation (RPA) component enables automation of downstream processes feeding the processed results to subsequent processes, and performing rule-based automation.

In essence what this translates to is the IPA solution’s ability to read, understand and process all documents including adjuster reports as well as assess photographs of the damaged vehicle. This information can then be automatically input into a downstream claim processing system. Combining telematic information with IA has allowed auto insurance agencies to leverage end-to-end automation for their business. Moreover, thanks to democratized IPA solutions, it is a fairly cost-effective measure without heavy initial investment being required.

AI-based auto insurance automation can also maintain the accuracy of data and guarantee a detailed and thorough log of all actions undertaken. Information sources of this nature can help agencies oversee regulatory compliance in real-time with the help of internal evaluations. Self-assessments can also better prepare a firm in the event of an external audit. Making the most of Intelligent Document Processing (IDP) and IPA solutions can lead to accelerated response time, reduced operational costs, and enhanced accuracy, efficiency, and productivity, all factors that contribute to agency differentiation.

If you’re interested in learning more about Intelligent Automation’s role in the insurance industry you can Explore the Emerging Role of Intelligent Automation in Insurance Document Processing. Alternatively, you could learn more about Understanding the Full Impact of Intelligent Process Automation (IPA) for Businesses.

If you’d like to explore opportunities where your business can benefit from IPA implementations for document understanding and hyperautomation, the Rapid Acceleration Partners team would be glad to help. Our next-gen, AI-powered content intelligence platform RAPFlow enables full lifecycle AI orchestration on a single platform. When used in tandem with our RPA solution RAPBot, it provides end-to-end workflow automation capabilities that can be deployed in just weeks. You can even build your own use case and the platform can easily integrate with your existing systems. Book a demo to get a more detailed understanding of how our products can transform your business. 

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