Insurance is not just a product that consumers can buy and secure for the future; It is also a commitment that consumers expect the insurance company to fulfill when they face the most difficult times of their lives. Thus, the concept of claim settlement and fulfillment is the most important aspect of any type of insurance product.
Insurance so far has been mainly led by the traditional model, where claim settlement is a lengthy and tedious process for both the consumers and the insurance companies.
Due to issues related to risk and fraud, it is a big challenge to make quick decisions without error, which leads to excessive delay in settlement. According to recent reports, about 38% of health insurance companies settle claims in an average of 5 business days; There have been reports of further delays in settlement. COVID has been a major testimony to the emergency health crisis in the country. And as per reports, Covid claims that 117 crores are left unresolved for FY21 ending March 2021.
In the case of life insurance, there have been cases where the beneficiaries are not even aware that they are the nominees of the policy. As much as As per 2018 data, 23 life insurance companies have 15,167 crore unclaimed policyholders. In case of individual life insurance business, during the year 2020-21, the number of pending claims at the end of the year was 3,055 623 crores; Whereas the rejected claims were 9,527 for an amount of 865 crores.
Claim settlement remains a major challenge for the category, affecting consumers and insurance companies alike. Powered by digital, technology-enabled data analysis solutions, streamlining claim settlement in the country is the way forward. Insurers can use Artificial Intelligence and Big Data Analytics to create accurate personal risk profiles. All of these make the underwriting process seamless, and, at the time of a claim, the risk profile can be quickly verified, which can reduce the turnaround time for claim processing to hours and minutes.
Indranil Chatterjee, Co-Founder, RenewBuy, said, “We understand the challenges consumers face, especially after filing claims and we have always wanted to upgrade the insurance value chain with the help of deep technological offerings. This is why RenewBuy recently acquired Artivatic.AI. Artivatic’s AI-powered technology will solve a long-standing problem for the industry and our consumers. We will be able to offer superior automated claims evaluation, real-time QC and fraud and risk assessment, and near-immediate claims settlement with minimal labor and errors. We would urge the entire industry to move towards a technology-driven insurance model to address the deep-rooted claim settlement issues in the country.”
Adding to this, Layak Singh, CEO, Artivatic.AI said, “Artivatic.AI already has more than 400 APIs and several patents, which have been developed with various insurance companies. Insurers using Artivatic’s deep technology have seen 90% reduction in policy issuance turnaround time, 70% reduction in claim turnaround time; 15% reduction in AML, risk and fraud. Therefore, deep technology can help the industry meet challenges with underwriting and claim settlement.”
Simultaneously, technology integration can help in ease of operation, risk-based personalized automated solutions, risk and fraud intelligence, embedded distribution and sales intelligence, which are the need of the hour for increasing and catering to insurance penetration in the country. Changing consumer insurance needs. While RenewBuy-Artivatic is a platform that can help the industry and consumers to resolve claims related issues, the industry needs to integrate technology and solve the long standing issues related to insurance. Participation and handshake are required.
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