Zurich Indonesia’s AI upgrade speeds up vehicle policies

AI streamlines appraisal and is part of the insurance firm’s P&C business growth, which experienced a remarkable 20% growth in GWP during Q1 of 2023.

Zurich Indonesia has taken a bold step towards enhancing their vehicle appraisal process by embracing Artificial Intelligence (AI). Through this new technology, the conventional manual survey method for used cars and new vehicles is getting a much-needed upgrade, promising improved efficiency and accuracy.

In an interview with Insurance Asia, Edhi Tjahja Negara, main director of Zurich Indonesia, acknowledged that manual surveys are prone to such challenges as timing, data accuracy and human error. AI assistance addresses these and hastens the evaluation process.

“One thing we understand from customer needs is data accuracy and process simplification. We saw an opportunity in the vehicle survey step to issue a policy and partnered with CamCom, an AI-based technology provider company," he said.

With AI at the core of their appraisal system, Zurich Indonesia aims to set new industry standards, delivering quicker and more reliable policy issuance for their valued customers.

Edhi explained that since the survey process could be performed automatically by agents and surveyors, the streamlined process allows for a faster and more accurate inspection report.

“This allows us to determine the appropriate protection value, more quickly, accurately, and reduces human error. Customers can also get an insurance policy on the same day,” he said.

It will also have a positive impact on company performance. Through better and faster services in real-time to customers. “Policies can be issued more quickly which leads to improvements in business,” he said.

Contribution of vehicle insurance

Vehicle insurance is crucial for Zurich Insurance’s property and casualty (P&C) business. This product serves as the largest contributor to gross premium income and company growth.

Furthermore, consider looking at Indonesia’s general insurance GWP in 2022 which grew 15.3% year-on-year (YoY) with the second largest contributor coming from vehicle insurance.

“We also believe that there is further potential for vehicle insurance, as four-wheeled vehicles sales are still growing so that there are still many drivers who will benefit from insurance protection,” Edhi said.

Potential and challenges

AI has proved to be useful in various ways, starting from reading forms automatically and using large language models (AI large language models), to the use of calculating risks and understanding customers better.

“At the moment, our focus is on applying these AI tools in our and our auto insurance surveys, and we plan to expand it for customer activities in the future,” Edhi said.

However, this process still faces challenges, particularly in terms of integrating with IT services and systems. “We believe that AI works best alongside human expertise,” he asserted.

Meanwhile, the company acknowledges the importance of data security in this regard. 

“It is very important that customer and company data is always safe and protected, so if we are considering the use of large language models (AI large language models), this needs to remain in the private domain with strict monitoring and control. As a company, we are developing an assurance framework for use with AI,” he said.

The second challenge lies in the adaptation process of company employees. “Along with the introduction of new technologies and developments, we provide ongoing training to our agents, surveyors, and internal employees prior to the introduction of this tool. We will continue to socialise new technological innovations to customers that will provide added value,” he explained.

So far, Zurich Indonesia has served more than 3.5 million customers. In Q1 2023, the P&C business recorded a growth of 100,000 customers with a gross premium growth (GWP) of 20%.

“We hope our focus on customers and continuing to innovate will continue our success for the rest of the year,” Edhi said.