The Positive Impact of AI on the Claims Industry

The insurance industry is undergoing a transformation with the integration of AI technologies, a development that is reshaping daily operations. Wendy L. Madevu, the vice president of property, specialty, and casualty claims at Swiss Re Corporate Solutions, discussed the substantial impact of AI on claims management in an interview with Insurance Business.

According to Madevu, AI solutions have revolutionized claims management by utilizing claims data to improve workflows and reduce costs and time. One notable AI-powered tool developed by Swiss Re Corporate Solutions is the Claims Brain, which leverages a comprehensive database of claims data to enhance claims analytics. This tool has enabled the creation of predictive models for subrogation and counter-fraud, enhancing the identification of keywords and phrases to optimize recovery opportunities.

The Claims Brain has empowered file handlers to efficiently manage salvage collection and subrogation opportunities, contributing to fraud prevention and positively impacting expenses and recovery processes. Madevu also highlighted the challenge of claims inflation due to catastrophic losses, natural disasters, rising material and labor costs, and supply chain disruptions. To combat this issue, she emphasized the importance of improving claim reserves and negotiating repair and labor costs effectively.

Effective risk management practices, including stakeholder involvement, are crucial in protecting the organization's brand and minimizing losses during catastrophic events. Swiss Re's POWHER initiative aims to promote gender diversity by providing opportunities for women in senior management positions and fostering female leadership within the industry.