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Claims Essentials

Better Tomorrow ClaimsTech

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Contents ClaimsTech finest gather

in London Jonny Valentine ClaimsTech - The Pitch

Shift

Users benefit from Uber delivery

Sharif Ishaque

Data the bedrock of collaboration and

integration Michael Porter Debunking the myths around AI

Irene Castelanotti

Entegral enabling frictionless claims

Sam Newman

Verisk warns of rising fraud risks

Gina Millard

AI code of conduct in the pipeline

Eddie Longworth

Sam Newman

ILC 2

Claims Essentials

ClaimsTech THE PITCH

10 Michael Porter

08 Sharif Ishaque

12 Irene Castelanotti

Gina Millard

Eddie Longworth

DISCLAIMER Contributors The views and opinions expressed within Better Tomorrow are reported from live events and are those of the individual contributor/s. They do not necessarily reflect the official policy or position of the contributor’s employer, organisation, committee or other group or individual. ILC While every effort has been made to ensure the accuracy of information, ILC will not accept responsibility for errors or omissions or for consequences arising from reliance on information published. The opinions expressed in Better Tomorrow are not necessarily the opinions of, or endorsed by ILC unless otherwise stated. COPYRIGHT All rights reserved. No part of the material contained within this publication may be reproduced or copied in any form or by any means without written permission from ILC.

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ClaimsTech finest gather in London J O N N Y VA LE NTI N E ILC ClaimsTech Lead CTO, ThingCo

Leading industry influencers from the world of claims technology gathered in London in September for ILC’s ClaimsTech 2023 programme of events. Backed by Headline Sponsor CoreLogic, along with Gold Sponsors Entegral, Solera Audatex and Verisk, and Silver Sponsor Synergy Cloud the programme included ILC’s inaugural ClaimsTech – The Pitch event which saw six leading technology outfits showcase their offerings to an audience of invited insurance claims experts and investors. Each technology was reviewed – behind closed doors - by the specialist panel culminating in the presentation of the Experts & Investors Choice Award later in the evening. The six - Clearspeed, NuvaLaw, Shift, Sprout.ai, SLVRCLD and

Yarowa - all provided top level insights into their products and services with Shift coming out as overall winners with one expert commenting: “I see how the product is solving a great need in the industry and expect it to be successful.” Later in the day, ClaimsTech LIVE took to the fore, providing insights and product showcases from some of the most respected names in the sector. In another first for the event, AI played its role in hosting proceedings. Included in the line-up were: Uber’s Director of Claims, Sharif Ishaque who provided an insight into the word of Uber Insurance; Corelogic’s SVP International, Michael Porter’s look at the positive impacts of technology; Irene Castelanotti, International Marketing Director for Claims, Solera Audatex who demystified AI for automotive claims management; Sam Newman, Business Development Manager, Entegral EU providing an overview

and demonstration of Entegral solutions; Gina Millard, Strategic Account Director, Verisk revealing a new patented-technology from Verisk; and Eddie Longworth, director of JEL Consulting providing an update from the AI in claims voluntary Code of Conduct group. A new addition to this year’s event included the ClaimsTech LIVE marketplace – providing delegates with the opportunity to get ‘up close and personal’ with event partner technologies. The following pages of this issue of Better Tomorrow provide a brief insight into the day and a glimpse of how technology continues to positively influence the sector Thank you to all those who supported the event – experts, investors, pitchers, sponsors and attendees. Kind regards

Jonny

Claims Essentials

Shift crowned winner of inaugural ClaimsTech

Shift was crowned the winner of ILC’s inaugural ClaimsTech – The Pitch event which took place in front of an audience of insurance experts and investors.

Winner!

Shift – one of six companies to showcase their technologies on the day – was awarded the ‘Insurance Experts and Investors Award’ following high praise for its strict 15-minute live pitch which saw it scored on three key metrics: innovation; potential success; and possible usage/ investment. Ben Lazarevic, Senior Business Developer at Shift – who delivered the pitch during the event – said, “We are absolutely delighted to be acknowledged by the claims community as an innovative and successful solution. Thanks to the panel for their time and consideration, and thanks again to the ILC community for such a fantastic event.” Taking part in the inaugural event alongside Shift were finalists: Clearspeed, NuvaLaw, Sprout.ai, SLVRCLD and Yarowa, all of whom exhibited during the evening’s ClaimsTech LIVE event which attracted over 120 of the sector’s leading claims technology influencers.

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Finalists SLVRCLD

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ClaimsTech

Users benefit from Uber delivery

S H A R I F I S H AQ U E Claims Director Uber

Uber revealed in a keynote address how it leverages data to select insurance partners and ensure that it offers the best protection for users. Setting the scene, Sharif Ishaque, Claims Director, Uber Insurance, explained how his company has set itself the target of being ranked in the top two of every market it operates in around the world. To achieve this, since 2020 it has been laser-focused on reducing operating costs and efficiencies. That has involved cutting operating costs, while also exploiting the latest technological breakthroughs in AI. Strategic partnerships are also critical to the company’s continued growth as it aims to increase its presence in more niche areas such as freight, scooters and highcapacity vehicles, such as Uber buses.

Claims Essentials

Data

Service

But, underlining everything this global disrupter does is data.

Data is also critical to the level of service Uber offers its users. It has created an insurance stewardship model, which combines its own customer knowledge with the expertise of insurer partners to ensure its platform is meeting the changing needs of customers, while a customer satisfaction programme provides a direct health check from the user about how they feel about service and whether they would return to the Uber platform again.

Sharif said, “We are data obsessed. We have a list of criteria which we demand from our insurer partners. We put that data into a carrier scorecard and every six months we benchmark our insurance carriers against each other across multiple lines. We also use that data for carrier selection going forward because what we’re looking to do is build long-term strategic partnerships and develop long-term price stability and predictability. For us, it’s about optimising insurance spend, and that means buying the right protection at the right price.”

Regular reviews also help the company identify and resolve potential problems before they become significant.

Sharif said, “The rewarding part of doing claims at Uber is we’re able to take our reports and metrics and drive real outcomes. We’ve been able to make material changes to policies according to different conditions or where we’ve seen gaps to improve the user experience. “It’s also helped us identify fraud and introduce forced exclusions and change eligibility criteria, which has driven hundreds of thousands of dollars of lost cost savings. “We can also share our claims and incident reporting data with our safety teams, enabling them to build products for future incident prevention.” To that end, it has developed a number of services geared specifically towards customer safety. Ride Check enables the platform to detect long stops and automatically contact the driver for a response, while its emergency SOS button enables users in volatile markets to alert the platform of a serious issue, with responders often arriving on the scene before the emergency services. Sharif concluded, “For us, safety never stops; it’s our number one priority.”

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Data the bedrock of collaboration and integration

M I C H A E L P O RTE R SVP International CoreLogic

Collaboration and integration have been buzzwords in insurance claims for a number of years but, according to Michael Porter, SVP International, CoreLogic, what is at the bedrock of it all is data. Speaking to Nic Sproul, ILC’s CCO, Michael said that sharing data is the fundamental aspect of collaboration and integration throughout the supply chain. This is particularly true in the property space, where there are typically any number of different parties involved at various points of a claim.

Claims Essentials

Michael said, “The ultimate goal is to reinstate the policyholder and keep them happy along the way. To achieve that, insurers now expect suppliers to collaborate more in the value chain because when that happens, value is created – and that value is the data.” He explained that, as the data builds up over time, it increases in value as it enables insurers to predict likely outcomes and then improve processes and automate steps. “The more data you have, the better decisions you can make,” Michael said. “But we need to get better at understanding that data and what insights we want to gain from it, and to do that we all need to be talking about the same thing, at the same time, and in the same way. That means using standardised platforms so everyone can see the data, share it, distribute it and learn from it.”

Transparency This level of transparency is not easily achieved, with each stakeholder driven by commercial incentives and, consequently, employing their own data strategies for their own objectives. But while Michael admitted that creating a sense of joint value is difficult, he insisted that it is possible. He said, “The carrot and the stick method won’t work in the long term. Ultimately, you’ve got to create individual value for everyone involved. That can be in terms of profits, longevity, or security.” Meanwhile, with the new Consumer Duty shining a spotlight on service, insurers now find themselves treading a line between innovating greater efficiencies while still delivering a personalised service that meets regulatory requirements. Again though, Michael believes that good use of technology is the key. He said, “Consumer Duty is about being customer centric, and that means giving the customer choice. Technology can be used to customise services and offer choice.

You can set expectations at the start of the process and tell the customer what choices they have throughout the claim. If you give them that choice then they’ll feel they’re part of the process.”

Future Looking ahead, he predicted that quantum computing rather than AI will be the most disruptive technology. “With AI, you won’t know whether what you’re seeing and hearing is real or generated, and you won’t be able to prove its authenticity,” he said. “Customers will lose trust in it. That’s already happening. But quantum computing is possibly the most exciting and potentially dangerous thing that’s coming.” He revealed that Google’s quantum computing lab solved a problem in 200 seconds that would have taken a standard computer 10,000 years. He warned the implications for fraud and data security of this could be substantial. Michael said, “We have to completely transform the way we transact, share and protect data.”

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Debunking the myths around AI

I R E N E C A S TE L A N OT TI International Marketing Director for Claims Solera | Audatex

The myths around the adoption of AI were debunked during a session by Irene Castelanotti, International Marketing Director for Claims, Solera Audatex. The session highlighted the impact AI is having on all sectors, and urged insurers to cast aside their doubts and embrace the benefits that can be achieved in terms of efficiency and customer service. Irene said, “AI is affecting all of us right now. It is affecting different industries, different job roles at different levels in the hierarchy, and at different paces.”

However, she believes there is a stubborn reluctance to adopt AI because of misconceived fears that it will replace jobs, be difficult to implement, and is viewed sceptically by customers.

Complex Addressing these concerns, she said, “AI won’t replace people in claims for three reasons. The first is that the claims decision-making process is extremely complex, and while we’re using AI to help us in some aspects it would not cope with the whole process. We need humans for the more complex cases. “We also require humans to develop regulation and to monitor the ethics behind the development and usage of AI. No one wants algorithms that work instead of people; we want algorithms that work for people.

Claims Essentials

“The third reason we need human involvement is customer trust. It’s true that customers require a far more digitalised experience these days, but at certain points in the claims process a human touch is required because that builds trust and engagement.”

Benefits The benefits of AI, in terms of savings, underwriting and customer service, are substantial. Irene revealed that underwriters in America dedicate 40% of their time to non-core activities. That equates to a loss of productivity valued at between $80bn and $160bn over five years. Further, the loss to American insurers of customers switching providers for a better digital experience is estimated at $170bn over the next five years. AI, by freeing up human resources to focus on what matters while at the same time streamlining service, can go a long way to mitigating both losses.

Underwriting

Personalised

Irene also said that AI can greatly improve underwriting, reducing the risk of fraud and improving both accuracy and terms.

She cited an EY survey that found that 71% of respondents would be in favour of data sharing if it led to a more personalised offering, while further research carried out by Solera Audatex revealed that 71% of customers would switch insurers to one which delivered a more digital experience.

She said, “By understanding not only who our customers are but what they want and how they are behaving, we will be able to be more precise in risk assessment and change the way we deliver our services. AI can also reduce fraud by identifying patterns and using natural language processing analysis to map the content of the conversation with the sentiment and flag any discrepancies.” Of course, understanding the customer better requires personal information and that can challenge data protection regulations. However, Irene believes that customer hesitation is over-stated and if sharing data improves both service and terms then most are supportive.

She said, “We know we have space to grow in claims management, and that there is a significant potential loss. But AI can enhance the customer experience, enabling us to widen our solutions portfolio and better understand who our customers are and what they want.” She concluded, “The future of claims management is using AI to deliver a completely connected and seamless management process, with human intervention only when it is required and decisions taken faster.”

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Entegral enabling frictionless claims

SAM NEWMAN Business Development Manager Entegral EU

Frictionless claims and repairs is a priority for insurers, repairers and drivers alike: Entegral explained how its suite of products are helping to make it a reality. Entegral, an Enterprise Rent-A-Car company, develops products specifically for insurers, OEMs, and repairers. Its solutions are divided into four value streams: products based around the network management experience; products based around the repair experience; products based around the instant coordination experience; and products based around the data that underpins all three.

Claims Essentials

Streamline

Selection

Speaking to ClaimsTech Live delegates, Sam Newman, Business Development Manager, Entegral, explained how its motor claims platform, Smart Assist, works to streamline the customer journey from FNOL to settlement, providing choice, transparency and efficiency.

Customers are then invited to select their own repairer from Entegral’s nationwide database and their own rental vehicle from a selection of the nearest Enterprise Rent-A-Car branches.

He said, “When the customer has had an incident and contacts the insurer, they receive an email or text with a link. Once they click that they will be walked through the steps they need to take next. This includes providing details about the incident, the car and the location, as well as taking images.

That repairer will then be notified of a new claim via CAPS with all the relevant data automatically shared within their management system. “From then on,” Sam said, “the customer is able to track their repair, with updates generated automatically and visible to all parties involved in the claim.”

“The benefits of this speak for themselves. Being able to take and share images with repairers early in the process is only going to add efficiency to the process. It is also an opportunity for insurers to benefit from AI technology, with our own AI partners validating the images.”

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Verisk warns of rising fraud risks

G I N A M I LL A R D Strategic Account Director Verisk

The insurance industry has been warned of the increasing risk of fraud as more and more advanced technology is available to more people. Gina Millard, Strategic Account Director, Verisk, said that developments in technology pose a risk on two fronts: insurers may adopt new systems or processes that leave them more vulnerable to fraud, while wider access to technology means a greater number of people are now able to target insurers.

The big risk is fraud because technology is available to anyone. There is a growing number of fraudsters trying to manipulate the process and, because of the cost-ofliving crisis, there are also more normal policyholders exaggerating their claims. The third reason we need human involvement is customer trust. It’s true that customers require a far more digitalised experience these days, but at certain points in the claims process a human touch is required because that builds trust and engagement.”

She said, “Technology is impacting every aspect of the claim, so we have a really big challenge within the insurance industry to improve processes while at the same time keeping customers happy and safe.

Claims Essentials

Detected She cited figures from the Association of British Insurers that revealed instances of insurance fraud to the value of £1.1bn had been detected last year, which equates to one case every five minutes, with another £1.1bn estimated in undetected fraud. Gina said, “Fraud is very real and we know how much it costs the industry. But it is the unseen fraudulent claims that are the concern; if we can’t see them, how can we protect the industry from them?” To help combat the increasing threat of fraud, Gina explained that Verisk has developed a patented AIpowered technology that involves a deep analysis of claims. The solution doesn’t just assess the validity of the image, but it also analysis the pixels within the image to test if they’ve been manipulated. She said, “We looked at 81,000 image appraisals over a two-year period and we saw a 16% increase in severity and cost, that represents a £1m indemnity. Nine per cent of the images were duplicate, and 701 claims were suspected or actual fraud.” She concluded, “We need to protect ourselves, we need to protect our indemnity, and we need to protect our customers.”

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AI code of conduct in the pipeline

E D D I E LO N G WO RTH Founder and Director JEL Consulting

A new voluntary code of conduct for the use of AI in claims will be introduced in January 2024. Eddie Longworth, Founder and Director of JEL Consulting, has revealed that a working group of around 100 industry professionals are developing the code which they hope will provide a framework for the safe and ethical adoption of AI technology. Speaking to Jonny, ClaimsTech Lead & CTO, ThingCo, Eddie said, “What we’re trying to do is bring an ethical framework to how AI might be applied in the world of claims. The group includes insurers, suppliers, tech companies, loss adjusters, legal experts, claims management companies, and ILC, so we’re getting a breadth of input that is very rare, and that’s why it’s working.” He said that the group addressed three key issues in recent meetings: transparency – when is AI being used; accountability – ‘You can’t blame the computer. AI does not make decisions, it’s the human who input into it that make the decisions.’; and ownership of the issue.

Claims Essentials

Eddie said, “AI is about making the complex simple to the end user. It should not be used simply to speed up what we we’re already doing, because all that happens is we do the wrong thing even quicker than before. There is a danger that AI becomes a catch-all solution, but it needs to be very focussed and very clear. “Where AI has huge benefits is in allowing us to reimagine how we do things rather than just speeding them up and automating them. In the future we don’t want to do the same things as we’re doing today. It can take us to a new level, but it needs reimagination rather than automation. “We need to step forward steadily, patiently and within the right framework. Hopefully that is what the code of conduct will do.”

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ClaimsTech

LIVE 2023

Making a positive impact

“Thanks again for a great event yesterday! Had an amazing time and the ILC team were fantastic.”

“It was a really well curated event and shows how effective smaller focused events can be”

Claims Essentials

“Yesterday was one of those days where I’m so grateful for being back to in person events and networking...”

“The talks and networking options were good”

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