The Rise of AI in Insurance Claims: Improving Workflows and Tackling Fraud

The insurance claims sector is tapping into technologies such as machine learning and artificial intelligence to increase efficiency, improve outcomes and detect fraud.

Whether it is a simpler version of AI that can be used to automate back-office processes or the newer generation AI, which can be used to analyze policyholders’ claims history and policy preferences, these new technologies are becoming more widely used in the industry.

‘There are a lot of policies that are written and a lot of claims that occur, which all have data around them,’ said Stan Smith, founder and CEO of Boston-based Gradient AI, which provides AI services for the insurance industry. ‘As I looked into it, claims were more of a challenge than underwriting. There was a lot of focus on how to get our claims costs under control.’