Record Year for Delegates at Insurtech Insights Europe, 2024  March 22nd 2024

Clearcover Launches Generative AI Insurance Tool to Expedite Claims Processing and Improve Customer Experience

Clearcover, a next-generation car insurance company, announces the launch of its revolutionary generative AI solution that further digitizes statement collection, significantly streamlining the insurance claims process and customer experience.

The AI-driven solution utilizes large language models (LLMs) to guide a conversational experience immediately following First Notice of Loss (FNOL). The claims intake tool collects the required information about the incident, which is typically collected in adjuster follow-up calls, to process and pay a claim.

"Our underlying foundation was built with best-in-class technology for digitally native customers, which has enabled us to get ahead of the curve," said Clearcover CEO and Co-founder Kyle Nakatsuji. "I am incredibly proud of our Product, Claims and CX departments for leaning into this industry challenge and raising the bar for AI insurance solutions."

As one of the first-to-market insurtechs to include this capability, Clearcover is rolling out a series of AI products to enhance its end-to-end insurance experience. Earlier this year, Clearcover's custom-built claims assistant began supporting claims adjusters in analyzing files and drafting communications to claimants and their representatives. The company also plans to integrate conversational AI into its mobile app to answer customer questions 24/7 in real-time. The feature will later be included within the company's agent portal and website.

"By leveraging the power of generative AI, we're ushering in a transformational way for our customers to share information and self-serve throughout their insurance journeys," said Clearcover's Chief Product and Innovation Officer Adam Fischer

AI will shift liability rather than create new risks

Lines between product and professional liability likely to blur

Artificial intelligence raises challenging questions for liability as the technology continues to outpace regulatory and legal developments, experts have told Commercial Risk.

The release of generative AI like ChatGPT has accelerated the use of the technology by business, from aiding medical and scientific research to product design and manufacturing. AI is increasingly being incorporated into products and services, for example to power autonomous vehicles, provide advice through chatbots, and create media content and art.

AI brings a raft of opportunities but also potential risks, including financial and reputational issues, according to Chris Williams, partner at UK law firm Clyde & Co. “AI simply cannot be ignored. It will play an increasingly important role for businesses, that’s inevitable. AI is the future and all companies will use it one way or another. The legal issues surrounding AI are varied, complex and rapidly evolving – these considerations are here to stay,” he said.

Yet insured companies using this new technology do not always fully understand these risks, he added.

“AI systems can be something of a black box, using large amounts of third-party data. But where does that data come from and how is the AI trained? This could give rise to a range of liability, such as breach of data privacy or copyright rules. There is also increasing scrutiny in terms of transparency and explainability, and the need for the business to able to explain ‘what’s in the black box’. This will only increase” he said.

Companies are also incorporating AI into their operations and products despite nascent and diverging regulation around AI safety and liability. The EU is developing a comprehensive package of AI regulations, while the UK is taking a pro-innovation wait-and-see approach. In October last year, President Biden issued an executive order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, which introduces new reporting requirements for AI developers in the US.

Are P&C Insurers Ready for Generative AI? | Insurance Thought Leadership

The potential for advanced technology in claims management is there, but first you need a solid foundation. Here's how do build one.

Generative AI will have profound implications for P&C, but right now, the industry, like many others, is doing the hard work of evaluating where to apply the technology and how to do so safely. The promise of generative AI’s abilities to improve claims management is enormous, and its impact will eventually be transformative and live up to today’s hype. But this will take time.

It’s easy to see the potential of the technology. Looking at business processes, one could say, “We could really use some summarization here,” or “a chatbot could totally handle this.” But actually incorporating generative AI responsibly into workflows that, for example, treat injured employees and assist motorists who have been injured in auto accidents is challenging given some of the inherent aspects of the technology. Addressing these characteristics requires thorough experimentation and care.

In the short term, the P&C industry will spend more time preparing for this technology than it will implementing it. There’s no doubt, though, that generative AI is making its presence known in the industry. So as P&C companies evaluate and investigate how they can use this technology, they would also do well to begin laying the groundwork for success.

Mike Bishop is executive vice president, product and technology, at Enlyte, where he is responsible for technical product strategy, direction and execution

AI in Property Insurance: Two Letters, One Massive Impact | CoreLogic®

Employing artificial intelligence in the real estate industry begins with good property data With the rise of Chat GPT – the sophisticated chatbot developed by OpenAI – artificial intelligence (AI) has exploded into public consciousness over the last year. It has also changed the way people live and work across all industries, including the property insurance industry.

As we learned at INTRCONNECT 2024, AI is poised to transform processes across the industry over the coming years. But just because technological change is coming doesn’t mean people should fear AI. The technology won’t replace professionals across the property insurance ecosphere.

Instead, AI will enhance jobs and allow people to concentrate more on the human component of their work. It will allow them to focus on the lives behind the buildings they are insuring, protecting, and restoring.

Many processes that are integral to the property insurance ecosystem, such as bulk processing claims to look for anomalies or filling out forms in the field, can now be expedited thanks to AI. This not only helps insurance and reconstruction professionals efficiently make accurate, objective, data-driven decisions, but it reapportions time commitments so that professionals can spend their days on uniquely human tasks like empathizing with policyholders that have suffered a loss event or combing through cases that merit additional scrutiny. full article

Insureds with AI experience more likely to embrace it, report says

An AI in Insurance Report published by Insurity reveals how insureds feel about P&C carriers using the technology, with some saying it’s a deterrent and others sharing they would recommend an AI-integrated insurer to friends and family.

P&C insurers have embraced AI, incorporating the system into claims processing, fraud detection, personalized risk assessment and AI chatbots to answer common questions. Insurity’s report found that respondents with experience using AI were more likely to view it in a favorable light.

More than 1,000 respondents answered the eight-question survey, released in January 2024, to evaluate the attitudes of today’s insureds about the use of AI in P&C insurance. Overall, consumer opinions took a positive turn if they had direct exposure to services enabled with AI.

First-hand AI experience

Insurity’s report discovered consumers were less skeptical and more trusting of AI if they had first-hand experience using the technology through their P&C carrier, with 63% giving positive feedback after interacting with the AI system.

While 42% of respondents said they were less likely to purchase an insurance policy from an insurer that admitted to using AI publicly, these consumers largely had minimal interaction with AI. These findings suggest the negative connotations associated with using AI in insurance come from a lack of understanding and inexperience.