Small claims are likely to be automated but this could impact customer satisfaction scores

The Chartered Insurance Institute (CII) New Generation Group has named the top emerging technological trends changing the claims landscape.

In its latest research entitled The future skillset of claims professionals: Highlighting the potential impact of technology on the race to reskill 2020/2021, the CII surveyed 445 claims professionals.

The report revealed that automation of small claims was likely and could have a subsequent effect on customer satisfaction scores.

The report said that 2020 saw a change in perception in engaging with technology – largely due to the pandemic. 

Matthew Connell, director of policy and public affairs at CII, said: “Insurance is a sector which often relies heavily on legacy systems and this can constrain our sense of what it possible when it comes to technological development.

”We must learn lessons from the pandemic and innovate to meet the public’s needs.”

The emerging trends in claims spotlighted by the CII’s report included:

  • Drones: A flying robot that is controlled remotely or flies autonomously via software-controlled flight plans. The use of drones can reduce investigation costs in claims, provide enhanced visual data and make desktop decisions.
  • Webchat: An online chat service between consumer and organisation via chatbot or live chat, such as Zurich’s chatbot Zara.
  • Self-service portals: A self-service portal is an online service that customers can use themselves. It allows administrative fees to be cut out and therefore pricing can be competitive. Marshmallow makes use of a self-service portal alongside webchats.
  • Internet of Things: The connecting of devices to the internet as well as other connected devices, for example smart fridges and microwaves. IoT devices can provide early notifications of claim severity where a water sensor is used, FloodFlash uses an IoT sensor to detect flood water levels using a pre-set trigger and pay-out within a parametric insurance model.
  • Remote inspections: Live video streaming (LVS) code allows claim handlers and loss adjustors to carry out remote inspections by connecting to policyholders through an app or a link.
  • Robotics, artificial intelligence (AI) and machine learning: Robotic Process Automation (RPA) is a solution that can automate manual repetitive tasks like back-office administration processes. RPA sits on top of the IT infrastructure and works well with legacy systems.