The use of drones has and will continue to drastically impact the claims space, an expert has said.
Muthu Kumaran, global practice head, insurance, at Cognizant, said that drones have emerged as “a game-changing trend in recent years” as insurance processes continue to evolve.

“Where previously drones have been used for military and combat operations, drones are now finding their way into the insurance market and have drastically impacted the insurance underwriting and claims process,” Kumaran told Insurance Business.

Australia has been at the forefront of utilising drone technology in the insurance industry.
Following Cyclone Debbie, Suncorp revealed that it has used the technology to assist clients impacted by the storm. This followed a move from IAG to use the technology in the aftermath of a bushfire in Victoria.

Specialist insurer Ansvar also announced plans to use the technology last year while other underwriting agencies and insurers have launched products to protect drones.

Kumaran noted that the use of drones in the aftermath of natural disaster will be important in the future to not only speed up response to disaster, but also to ensure safety for assessors working in disaster-hit areas. By taking to the skies, the industry can virtually eliminate risk of injury during the claims process.

Technology in the claims space will also be important for the industry as it helps ease the burden on customers.

Kumaran said that the use of technology in claims allows for more accurate reserving and assessment as new processes can be deployed quickly.

“The advantage of new technologies in claims, in particular, is the chance to use preconfigured components to form the heart of digital claims solutions,” Kumaran continued. “This not only leads to increased efficiencies, accuracies, and customer benefits, but also fosters a wider culture of innovation within the claims space.”


Related stories:
Drones assist in Cyclone Debbie claims
Brokers need to keep pace with drones