Claim handling dissatisfaction could put $170 billion of global insurance premiums at risk in the next five years, according to Accenture's
The report is based on surveys from about 6,700 policyholders in 25 different countries, 120 claims executives in 12 countries and more than 900 underwriters who are based in the U.S. It includes information on how the industry is responding to market dynamics and pressures, as well as underwriting challenges and the integration of AI technologies.
About one-third, 31%, of claimants were
AI technologies are highlighted as something that could benefit the
"AI is no longer a technology of the future, but an established capability that many insurance innovators are already putting to work to deliver better customer experiences and empower their workforce," said Kenneth Saldanha, who leads Accenture's Insurance industry group globally, in the press release.
About 80% of the claims executives surveyed said they think
While the potential benefits of AI in claims are clear, the adoption of the technologies is slow. Only about one-third, 35%, of claims executives said their organizations are using
"As humans and AI collaborate ever more closely in insurance, companies will be able to reshape how they operate, becoming more efficient, fluid and adaptive. Those that are already moving to leverage AI will be able to create sustained competitive advantage," said Saldanha.
Additional findings to note include:
- Nearly 40% of an underwriter's time is spent on administrative and non-core, an annual efficiency loss of between $17 billion and $32 billion.
- 60% of underwriters surveyed said that improvements could be made to the quality of their organizations' processes.
- Process inefficiencies in underwriting could potentially cost the industry another $160 billion by 2027.