Big process changes
The shift toward zero-touch processing
Respondents were asked about the progress they expected to make in augmenting key processes between now and 2023. (Percent of respondents who report some level of augmentation: “widespread” or “implemented projects/good augmentation”)
Response base: 285 insurance executives Source: Cognizant Center for the Future of Work Figure 4
As Figure 4 reveals, both claims processing and underwriting/risk assessment will change dramatically between now and 2023. The percentage of insurers planning to augment claims processing will jump from 16% today to a staggering 58% by 2023. Underwriting and risk assessment processes will see a similar leap, from 9% today to 49% by 2023. Insurers are investing heavily to make these two processes almost zero-touch, reducing both cost and processing time.
Both underwriting and claims handling can be streamlined and mined to detect fraud and make smarter decisions while minimizing unnecessary human interaction, which can lead to inaccuracies and bias. Machine learning and AI software can dramatically shorten the claims lifecycle further; imagine when drones and image recognition software can be spliced into the workflow, and algorithms take on more decision-making.