IAG says that following significant investment in artificial intelligence (AI), the core of its claims process transformation is complete, with 16 independent, ageing claims platforms merged into a single modern platform.
In his Investor Day 2023 presentation, Neil Morgan, COO of IAG, revealed that 65 per cent of all IAG automation is focused on claims, producing a “faster, leaner experience”. For example, embedded AI has reduced IAG’s total loss motor claims processing time from “days to hours”.
Going further in an interview with Insurance Business, Morgan said that IAG’s AI enhanced digital capability for motor vehicle claims is being deployed above the transformed core.
“We’ve seen that AI operates at very high levels of accuracy – over 90 per cent accuracy, and it gets better over time,” he said.
“[The AI enhanced motor claims process is] both helpful from a customer experience perspective [and] hopefully from a broker perspective in terms of their relationship with customers, but also it has an efficiency side to it for us. So, reduced operating costs in towing and assessments and turnaround times.”
Responding to intermediated motor claims stakeholders who say that some insurers can take weeks to respond to claims, Morgan said the AI capability is used across IAG’s direct and intermediated insurance divisions, adding that the technology is “applicable for claims regardless of where they originate”.
With the transformation of the core claims process complete, Morgan said IAG will turn its attention to ongoing digital tweaks and upgrades, adding that’s “where the magic happens.”
In the direct business, the upgraded system is expected to roll out over the next 12 to 18 months. It will replace legacy systems used by two thirds of IAG’s personal lines customers across Australia and New Zealand.