Insurance Australia Group (IAG) has announced it is implementing artificial intelligence (AI) to improve customer experience by reducing claims processing times from over three weeks to only a few days.
IAG's new predictive total loss tech, which combines AI with business process automation, removes the need for a vehicle to be towed to a repairer before being assessed as a total loss – reducing claims processing times for customers with cars written off in an accident.
IAG director of analytics Hannah Sakai said the insurer developed the new tech to help reduce the emotional impact of an accident by providing policyholders with more clarity and certainty sooner in the claims process.
“A car accident can be a traumatic and challenging time for our customers, so we turned to artificial intelligence to help improve this experience,” Sakai said.
The new predictive total loss solution leverages machine learning to detect a potential total loss with over 90% accuracy by using the information provided by the policyholder when they make a claim on the phone with a consultant or online. The insurer then notifies the policyholder of the potential total loss outcome via text message the next day to provide transparency upfront on the process and to give answers to commonly asked questions.
“We've seen a significant uplift in customer advocacy as measured through total loss customer experience surveys,” Sakai said.
“The predictive total loss model is one of many AI applications being developed by data scientists in IAG's AI Centre of Excellence. Using an internal team allows us to leverage our unique business knowledge to tailor the experience to our customers.”