Zurich to use AI for handling claims

ZURICH INSURANCE is deploying artificial intelligence in deciding personal injury claims after trials cut the processing time from an hour to just seconds, its chairman said.

“We recently introduced AI claims handling... and saved 40,000 work hours, while speeding up the claim processing time to five seconds,” Tom de Swaan said, after the insurer started using machines in March to review paperwork, such as medical reports.

“We absolutely plan to expand the use of this type of AI,” he said.

Insurers are racing to hone the benefits of technological advancements such as big data and AI as tech-driven start-ups, like Lemonade, enter the market.

Lemonade promises renters and homeowners insurance in as little as 90 seconds and payment of claims in three minutes with the help of artificial intelligence bots that set up policies and process claims.

De Swaan said Zurich Insurance, Europe’s fifth biggest insurer, would increasingly use machine learning, or AI, for handling claims.

“Accuracy has improved. Because it’s machine learning, every new claim leads to further development and improvements,” he said.

Japanese insurer Fukoku Mutual Life Insurance began implementing AI in January replacing 34 staff.