Generative AI Cuts P&C Claim Times by 50% – Bain & Co

Generative AI to Bring Big Benefits in P&C Claims Handling: Generative artificial intelligence (AI) could deliver over $100 billion in economic value within property and casualty (P&C) claims handling, mainly through cutting expenses and reducing claims leakage, a Bain & Company report reveals. It could also decrease loss – adjusting costs by 20% to 25%.

Promising Early Results from Testing: The technology, which has been tested by insurers like Zurich and a South American carrier, has shown great early results. It has cut task times by up to 50% and reduced leakage by 40%. Generative AI can streamline P&C claims by reducing loss – adjusting costs within the 20% – 25% range and leakage by 30% – 50%. This benefits insurers and might lead to lower customer premiums, as per Bain & Co.

Challenges in Scaling AI Solutions: Efficiency improvements stem from AI’s capabilities such as handling call transcription, initial data gathering, and claim file summarization. This allows claims handlers to concentrate on complex cases. Insurers also expect less need for human oversight, as generative AI can identify exceptions and patterns from historical claims data to assist adjusters. However, Bain notes that scaling AI solutions across claims handling will demand organisational adjustments. This involves starting with simpler use cases like knowledge assistants or automated summaries before progressing to more complex applications such as customer – facing virtual assistants.

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