Generative AI slashes P&C claim times by 50% – Bain & Co.

It could also decrease loss-adjusting costs by 20% to 25%.

Generative artificial intelligence (AI) could deliver over $100b in economic value within property and casualty (P&C) claims handling, mainly through reduced expenses and claims leakage, according to a Bain & Company report. 

The technology, tested by insurers like Zurich and a South American carrier, has shown promising early results, cutting task times by up to 50% and reducing leakage by 40%.

Generative AI can streamline P&C claims by decreasing loss-adjusting costs by 20% to 25% and leakage by 30% to 50%, benefiting insurers and potentially lowering customer premiums, Bain & Co. said.

Efficiency improvements come from AI’s ability to handle tasks like call transcription, initial data gathering, and summarising claim files, allowing claims handlers to focus on complex cases. 

Additionally, insurers anticipate fewer human oversight demands, as generative AI can identify exceptions and patterns from historical claims data to support adjusters.

Despite these gains, Bain notes that scaling AI solutions across claims handling will require organisational adjustments. 

This includes adopting simpler use cases initially, such as knowledge assistants or automated summaries, before moving to complex applications like customer-facing virtual assistants.