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HDFC ERGO Takes a Technological Leap with AI Based Motor Claims Processing

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Published on July 21, 2021. EST READ TIME: 4 minutes

HDFC ERGO has never shied away from experimenting with cutting-edge technology for smoother and more efficient operations. Their tech focus has always been to improve customer convenience and to optimize the cost of policy administration. In 2020, the company found a great opportunity to take their tech leadership forward, by introducing HDFC AI based motor claims processing system. To know more about it and how both HDFC ERGO and you can benefit, read on.

What is AI based claims processing?

By utilising technologies like Neural Network image processing and Analytics, Machine Learning and Natural Language Processing, insurance companies can now process claims completely though computers with minimal to zero human intervention. Moreover, since these systems use neural networks and machine learning, they get faster and smarter as they process more and more claims. This is the reason why companies that provide insurance for vehicle of any kind are now looking to use these advanced systems for improving claim processing.

 

How HDFC ERGO is making the most of AI based claim processing?

With the introduction of app-based vehicle surveying in 2017, HDFC ERGO gathered more than 3,00,000 images of damaged vehicles. These images, along with their relevant details, form the basis of the IDEAS system, which acts as a centralised claims processing system. It will start as a system that supports instant damage detection. The surveyors can use it for calculation of the claims estimate. This will make it possible for them to get car insuranceor two-wheeler insuranceclaim settlement in real-time.

Benefits of HDFC AI enabled claims processing

1. Makes claim processing simple: Filing and processing a claim is usually a complicated task. Apart from several forms, the process involves photographing the vehicle and where the damage has occurred and multiple levels of scrutiny. And these various steps tend to develop different levels of complexity. The AI used by HDFC ERGO can handle most steps on its own and reduce human effort, making the entire process much simpler.
2. Makes claims processing cheaper: As there are many steps involved in the claims process, you also need to bear the cost related to people and paperwork for each of these steps. With an AI enabled system though, most of the process is digital. AI systems have a one-time deployment cost and much lower ongoing cost, making it much cheaper overall. 
3. Makes claim processing faster: When claims are being processed by people, they will take a certain amount of time. People need time to collect and organise claim related information, process it, and check it for any inaccuracies or mistakes. They also need to scrutinise the claims for any falsity or fraud risk. HDFC ERGO’s AI system can do this in a matter of seconds where people would take hours to process the same.
4. Makes claims processing more accurate: With people involved in many steps of the claims process, there is always a risk of human error. These can be simple ones like incorrect spellings in names to more complicated ones like mistakes in the entry of financial data like account or amount details. With an AI enabled claims processing system, the overall processing becomes much more accurate because computers do not make human mistakes.  
5. Increases claims processing volume: With the traditional form of claims processing, insurance companies can only maintain a certain volume of processing because of multiple levels of human intervention. Speeding up can only be done when more people are added to the team, which increases the cost for the company and policyholder. On the other hand, HDFC ERGO’s AI enabled claims processing is handled by computers, which work much faster. This means many more claims can be processed in the same time period.
6. Reduces the number and risk of false claims: Fraud detection and legal compliance is always a challenge for any financial services company. No matter how hard they try, insurance companies are not always able to stay ahead of fraudsters. With AI enabled claims processing, it is now possible for HDFC ERGO to get ahead of the claim and significantly reduce fraud claims. This makes insurance overall cheaper for everyone.

 

All in all, HDFC ERGO has embraced the latest in technology to make its claim settlement process simpler, faster and smarter. This will not only help them reduce operational costs and frauds, but also boost customer experience, gain goodwill and build long term relationships.

 

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

 

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