Based on the sources provided, the following is a comprehensive breakdown of the data and statistics regarding the role of AI in insurance claims and underwriting.
Research Methodology and Scope
Accenture conducted primary research across three distinct groups to understand industry pain points and AI opportunities:
• Customers: 6,784 home and auto insurance customers across 25 countries who made a claim in the last two years.
• Claims Executives: 128 executives across 13 countries.
• Underwriters: 434 US-based underwriters ranging from entry-level to senior management.
Customer Satisfaction and Financial Risk
The report highlights a significant gap in customer satisfaction that poses a massive financial risk to carriers:
• Dissatisfaction Rate: One-third of all claimants reported they were not fully satisfied with their most recent claims experience.
• Revenue at Risk: These dissatisfied claimants represent up to $170 billion in renewal premiums over the next five years.
• The Impact of Speed: Dissatisfaction increases as settlement time lengthens. The percentage of policyholders not fully satisfied based on settlement speed is as follows:
→ <48 hours: 17%.
→ 48 hours – 1 week: 25%.
→ 1 – 4 weeks: 31%.
→ 1 – 2 months: 37%.
→ 3 – 6+ months: 39%.
Operational Inefficiencies and Costs
The sources identify major areas where manual processes lead to significant industry-wide losses:
• Underwriting Time Loss: Up to 40% of an underwriter’s time is consumed by non-core and administrative activities.
• Economic Impact: This loss of productivity represents an estimated $160 billion industry-wide efficiency loss over the next five years.
• Claims Call Volume: Approximately 40% of inbound calls to claims departments are basic status checks, which could be automated through AI-driven outbound messaging.
• Falling Technology Costs: The cost to train an image classifier (ResNet-50) on a public cloud dropped from roughly $1,000 in 2017 to just $10 in 2019, making AI adoption more viable.
Investment and Market Trends
Investment in AI is accelerating as both executives and investors recognize its transformative power:
• Insurtech Funding: AI-led insurtechs saw a 20% Compound Annual Growth Rate (CAGR) in investment from 2015 to 2020.
• Venture Capital: In 2021, there were at least five instances of VC funding exceeding $100 million into AI-led insurtechs.
• Executive Sentiment: While only 44% of claims executives believe their organizations are currently advanced in AI and automation, 80% believe these technologies can bring more value.
• Future Spending: 65% of claims executives plan to invest more than $10 million into AI over the next three years.
The Impending Workforce Crisis
AI is positioned as a necessary solution to a shrinking labor pool:
• Retirement Gap: The US Bureau of Labor Statistics estimates that 50% of the insurance workforce will retire within the next 15 years.
• Labor Shortage: This retirement wave will leave more than 400,000 open positions that cannot be replaced person-for-person, requiring AI to supplement the remaining workforce.
Case Study: Compensa Poland
The implementation of a self-service, AI-based claims-handling system yielded measurable improvements:
• Cost Efficiency: Achieved a 73% increase in claims process cost efficiency.
• Accuracy: Improved claims accuracy by 10%.
• Customer Advocacy: 50% of customers who used the digital application said they would recommend it to friends or family.
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