Posted on Leave a comment

The insurance industry in 2023 and beyond

The global insurance market faces many challenges this year, from ever higher customer expectations, to soaring inflation, climate change, cyber security risks and pandemics. Few insurance lines will be unaffected by these issues. Insurers operating in every jurisdiction and across every line will need to think about how to deal with them.

Here is how Sprout.ai envisions the year ahead playing out, as well as some thoughts on what might happen further ahead.

Inflation will drive up insurance premiums

Inflation is significantly impacting the insurance industry as the rising cost of goods, repairs, and services drives up claims payouts for insurers. As a result, premiums may also increase as insurers look to offset their losses. Traditional insurers may have an advantage in this market as they have a more established brand and deeper coffers, which customers may find more reassuring during uncertain times.

However, traditional insurers also have higher operational costs compared to technology-first insurance providers. To remain competitive, traditional insurers will need to optimise their operations and invest in technology that allows them to provide better service at a lower cost. The insurers that can do this quickly and efficiently will come out on top.

The insurance industry will also need to meet cost-of-living pressures

Despite the higher costs caused by inflation, insurers will need to adapt by offering flexible and competitively priced products to their customers as cost-of-living pressures continue to bite. To stay competitive, insurers should invest in product innovation and offer flexibility and choice. In 2023, customers will look for lower cost policies that are tailored to their specific needs.

To help prevent or mitigate potential losses or risks, many insurance companies will provide additional services to their customers. These will reduce exposure, reduce overall claims volumes, and improve profitability for the company. For example, offering health insurance customers periodic health checks or gym memberships can improve customers’ health and well-being, which reduces the likelihood of making a claim, while generating additional revenues if the right partnerships are created. This can be seen as a win-win situation for both the insurer and the customer.

Insurtech startups will face funding challenges

The decline in tech funding in 2022 has affected the insurtech sector, with companies experiencing a drop in later-stage growth funding and reductions in valuations. Investors are becoming more cautious and focusing on growth metrics, which poses a risk for insurtech startups that rely on funding to fuel their growth. However, this presents opportunities for well-financed companies with deep pockets.

 Traditional insurers may be able to regain market share or drive consolidation in the market as they partner with new and traditional insurance companies. The future of the industry is uncertain and the funding situation may change, but for now, venture capital and private equity funds still have money to invest and insurtech is still considered a “hot” area.

Artificial intelligence and the Internet of Things will continue to disrupt

Artificial intelligence (AI) is overhauling the insurance industry by automating complex tasks that were once difficult to perform with traditional software , as well as the simpler, repetitive ones. With the use of deep learning and other AI techniques, many decision-making processes in insurance can be automated or assisted by software. For example, identifying the circumstances that led to a customer’s insurance claim and cross-referencing it with the terms of the current policy is a complex task that can now be automated. More and more insurers are leveraging this type of technology.

In 2023 and beyond, insurers will begin to use the Internet of Things (IoT) and wearable devices to track customers’ behaviour to identify and mitigate the risk of claiming on insurance. This technology can be helpful in tracking patterns and behaviours, or monitoring health and activity levels for health insurance customers. IoT and wearables can provide insurers with valuable data that can help them better understand the risks their customers face, and allow them to offer more tailored insurance products.

Customer-centric approaches to claims will become the norm

Today, the majority of insurers structure their operations by insurance lines. For customers, this is highly inefficient. One customer holds multiple policies for different insurance lines. It becomes even more inefficient and problematic if the customer needs to claim on more than one type of insurance. 

Here’s what that problem looks like:

Customer ‘A’ owns a house where a fire breaks out. The fire destroys the entire contents of the home and causes the customer severe respiratory issues. Customer ‘A’ will need to claim on up to three insurance policies: buildings, contents and health insurance. This are likely to be held with different companies.

Customer are often emotionally, financially, or physically vulnerable when filing an insurance claim. Improving efficiencies in the claims process will help reduce that stress and enhance the overall customer experience. 

Flexible workforces and embedded technology will enable resilience to global crises

The Covid-19 pandemic had a far-reaching impact on health insurers. Claims volumes increased by 40-60% and have not fallen since. This dramatic increase has been driven not just by Covid infections, but by the knock-on impact of the pandemic on other long-term health conditions. Insurance companies have had to retrain claims handlers from other areas such as motor insurance to manage health claims. This has been a long and expensive process as it can take up to 9 months to train claims handlers.

This highlighted the challenge of dealing with a crisis and a spike in claims using legacy processes and technology. In the years ahead, global warming will present enormous challenges for insurers in the form of wildfires, rising sea levels, and floods. Insurers will prepare for these events by automating much of the claims process and increasing the flexibility and elasticity of their workforce.

To learn more about how Sprout.ai can boost efficiency and enhance customer experience, book a call today.

Posted on

AdvanceCare unlocks end-to-end claims automation and real time processing with Sprout.ai

AdvanceCare can scale by serving more customers, while maintaining an exceptional claims experience

Invoices from many categories, including hospital, dental, pharmaceutical, independent workers and optical were processed with a high degree of accuracy

Sprout.ai’s AI technology increases the work capacity and reduce the work volume per team member

AdvanceCare is now using Sprout.ai’s technology to automatically extract relevant data from healthcare invoices. This follows a successful pilot, in which AdvanceCare cut down the claims settlement turnaround time to near real time.

Healthcare insurance group AdvanceCare integrated with the Generali Group, an international group present in more than 50 countries, in 2020. The merger enhanced their ability to grow and serve more customers.

With Sprout.ai’s technology, AdvanceCare will unlock full end-to-end claims automation, allowing the team to index claims with far greater efficiency and speed. 

The pilot

During the pilot, Sprout.ai analysed a significant sample of healthcare invoices across a series of categories of invoices, including hospital, dental, pharmaceutical, independent workers and optical. The pilot outcomes showed very high accuracy levels in the collected fields across all categories.

Sprout.ai’s AI technology will increase the work capacity and reduce the work volume per team member. AdvanceCare will be able to scale up its business by serving more customers, while maintaining an exceptional claims experience. 

With Sprout.ai, claims handlers no longer need to spend their time on low-value, repetitive tasks, allowing them to dedicate more quality time to tasks that are more valuable and rewarding, optimising the customer experience.

Sprout.ai supports digitalisation and efficiency 

“AdvanceCare is continuously looking for innovative ways to improve the insurance claims experience,” said Sergio Melro, chief operating officer at AdvanceCare.

“We selected Sprout.ai as our partner as they have demonstrated that their technology and approach can take us one step forward in our digitalization and efficiency journey.”

In the past year, Sprout.ai has partnered with several new customers in the Health and Property & Casualty (P&C) categories including an international health insurance provider in APAC, and other leading insurers Zurich and Metlife.

Sprout.ai CEO Roi Amir said: “We are delighted to be partnering with AdvanceCare, one of the largest health insurance platforms in Portugal.”

“Using AI in the indexing process will allow the AdvanceCare team to manage claims quicker and more efficiently, improving the customer experience. It’s a win-win for everyone and we are happy to be part of this positive change.”

About Sprout.ai

Sprout.ai is an end-to-end claims automation technology solution for the insurance industry. Sprout.ai works in partnership with major insurers, including Zurich UK, Metlife and AdvanceCare to build groundbreaking AI and data-led products to automate the claims process for customers. 

Sprout.ai’s vision is to provide a frictionless claims experience to everyone in the world. The average time it takes for insurers to process claims is around 30 days. At a time when you’re emotionally and financially vulnerable, this is often frustrating and stressful. Sprout.ai enables insurers to make a decision on a customers’ claim, in near real-time. Sprout’s technology delivers fast and accurate decisions and an exceptional claims experience, driving high customer retention with improved efficiency. 

To learn more about how Sprout.ai can boost efficiency and enhance customer experience, book a call with one of the team.

Posted on Leave a comment

Sprout.ai is now ISO 27001 certified

We’re certified!

Sprout.ai is now proudly ISO 27001 certified for the development, support, and delivery of global ‘SAAS’ solutions that enable automated insurance claim handling. You can download our certificate here and will see the badge displayed across our website.

ISO 27001 is an international standard for information security management. It sets up a framework for managing sensitive information, ensuring that it is protected from unauthorised access, disclosure, and destruction. 

As an insurtech company, we deal with plenty of sensitive customer and partner data, as well as the data of our employees. We hope this certification, which demonstrates just how seriously we take information security and the rigour with which we protect sensitive data, will provide an extra layer of assurance to our partners. 

The standard covers our entire information security management process, including risk assessment, security controls, incident management, and compliance. 

We selected the United Kingdom Accreditation Service (UKAS), a national accreditation body, to review and verify our information security management systems. The leading accreditation body for ISO 27001 in the UK, UKAS is recognized by the UK government and is a member of the International Accreditation Forum (IAF), the global organisation for accreditation bodies.

UKAS will continue to audit us to ensure we remain SO27001 compliant as we grow.

CEO Roi Amir said: “We are proud to announce that we have achieved the ISO 27001 certification. Sprout.ai has always treated information security seriously and by achieving this certification, our customers, employees and partners can have confidence that we are taking the necessary measures to protect their data and  maintain high levels of security.”

To learn more about how Sprout.ai can help you process claims in real time, book a call with one of our claims experts

Posted on

Customers’ expectations vs reality

Insurance customers anticipate a far faster claims process than the one they experience. How can insurers catch up?

More than 1 in 5 (21%) insurance customers expect claims to be resolved within hours. A total of 100% of 18 to 24 year olds expect a resolution on an insurance claim within one week, according to our recent research into customer expectations of the claims process.

Download the report: Responding to rising customer expectations in insurance

We surveyed 1,000 consumers about their attitudes towards insurance claims. Of that number, 99% were either solely responsible for choosing and purchasing insurance products, or made the decisions with a member of their household. 

They told us:

  • 43% of customers across multiple insurance lines waited over two weeks for a claim to be resolved
  • 62% of claimants with a “good” or “very good” customer experience said that they stayed with their existing insurance provider
  • 31% of claimants with a “good” or “very good” customer experience said that they would use the same provider at some point in the future
  • 19% of those with a “bad” or “very bad” experience said they are still a customer of their existing insurance provider
  • 89% with a “bad” or “very bad” experience said they would not purchase a policy from the same insurer in the future

Customer service matters most during claims

In today’s highly competitive insurance markets, margins are tight. It is easy for customers to switch between different providers. Delivering excellent customer experience is, therefore, vital for customer retention.

After a customer purchases an insurance policy, the next ‘touchpoint’ is typically when a claim is filed. The customer is likely to be vulnerable or distressed. The insurer needs to deliver and prove that the customer’s purchase was a wise investment.

The time it takes for a claim to be processed and the ease of speaking to a claims handler have a significant impact on the overall customer experience. This can boost customer experience, and in turn, the insurer’s Transactional Net Promoter Scores (TNPS).

How Sprout.ai helps insurers meet their customers’ expectations

Customers want: Quick resolutions

Sprout.ai empowers insurers to settle many claims in real time, and speed up the time it takes to process more complex claims.

Customers want: To be able to speak to a handler

Sprout.ai performs many of the repetitive data entry and checking tasks that take up claim handlers’ time, freeing them up to speak to customers.

Customers want: Confidence that their claim has been processed fairly

Sprout.ai is free from bias and 97% accurate. 

How it works

Data extraction

Documents submitted for a claim can include PDFs, handwritten reports, images and freeform notes, as well as structured text and digital content. Manually processing these documents is time consuming and open to inaccuracy, fraud and wastage. 

Our NLP and patented OCR technology can extract all relevant information from any type of document submitted as part of the claims process. As a result, it can be used to automate and provide insights. 

Data enrichment 

We refine and improve the data we have captured by up to 300% by attaching external data points such as fraud checks, replacement prices, claims history and much more. This helps us validate the claim, checking for fraud, reduce waste and abuse and identify outliers. 

Policy checking

Our technology enables fast, accurate and superior policy checking and claim validation. It takes all relevant information and validates it against the policy documents to check whether the claim is covered under the customer’s specific policy. 

Our patented NLP solution can automatically check for coverage a moment a claim is made due to its deep understanding of claims and insurance related language, including synonyms for the same word (e.g. waste, garbage, rubbish). 

As a result, claims can be processed in real time, or far faster than before, freeing up handlers to focus on customer service.

To learn more about how Sprout.ai can help you process claims in real time, book a call with one of our claims experts

Posted on

How can insurers attract Gen Z?

Two young women looking at a phone

Real time claims processing gives insurers an edge that Gen Z care about

Young people have the highest consumer expectations of any age group according to multiple surveys and reports. Whether they are buying an insurance policy, opening a bank account or sending a parcel, they look for and expect exceptional customer service. Digitally literate, they are the group most likely to access and purchase products and services online. If providers fail to meet their high expectations, they are happy to vote with their feet and change providers. 

Our own recent research into insurance customers’ expectations around the claims process confirms this. Of the 1,000 insurance customers we spoke to, 100% of those aged 18 to 24 said that they expect a claim to be settled within a week. 

They are likely to be disappointed. Our research found that 43% of customers across multiple insurance lines waited two weeks or more for their claim to be resolved.

Download the report: Responding to rising customer expectations in insurance

We also discovered:

  • 18% of 18-24 year olds buy insurance solely from digital players. In contrast, no 55-64 year olds said they would consider buying insurance from a digital player only
  • 50% of respondents who buy solely from traditional insurers would consider buying from a challenger brand
  • 34% already buy policies from both traditional insurers, such as AXA, Aviva and Allianz, and challenger brands, such as Lemonade and WeFox

The allure of digital challengers

There is a significant adoption of digital insurance products Gen Z and millennials. They actively look for providers offering instant digital access, transactions and customer support, as well as fast settlement times.

The insurtechs providing these services are thriving. Lemonade, the US digital insurer, recently released its best ever results. It saw 76% growth in ‘in-force’ or active premiums, more than triple the number it had two years ago. The company has 1.7 million total customers, 30% more than a year ago. 

In Europe, Wefox is gaining traction by selling insurance products through in-house and external brokers, rather than taking the direct-to-consumer route. In July 2022, it raised $400 million in a Series D round at a valuation of $4.5 billion. 

How can legacy insurers keep up?

Legacy technology and processes are simply too slow to keep up with Gen Z’s expectations. Traditional insurers have focused on innovating and digitising the front end experience of insurance products, but less on the claims experience.

Legacy insurers are at risk of losing ground to these digital players if they do not invest in technologies that enable excellent customer service through the claims process. 

Although they increasingly offer the same, intuitive User Experience (UX) consumers have come to expect from their favourite grocery delivery or ride-hailing apps, back-end processes also need to be updated. This can drive growth and reduce costs for insurers operating on increasingly tight margins. 

How Sprout.ai helps insurers attract and retain Gen Z customers

Gen Z consumers want: Quick resolutions

Sprout.ai empowers insurers to settle many claims in real time, and speed up the time it takes to process more complex claims.

Customers want: Great customer service

Sprout.ai performs many of the repetitive data entry and checking tasks that take up claim handlers’ time, freeing them up to speak to customers.

Gen Z consumers want: Confidence that their claim has been processed fairly

Sprout.ai is free from bias and 97% accurate. 

Gain a reputation for efficiency and boost tNPS 

Sprout.ai’s intelligent claims automation engine empowers insurers to resolve claims in a time frame that meets customer expectations.

This can boost customer experience, and in turn, Transactional Net Promoter Scores (TNPSC), which indicates how likely a customer is to recommend that company’s product or service to others, based on the customer experience of the joining process, resolution of a support question, or interaction with their customer service representative. 

How it works

Data extraction

Our NLP and patented OCR technology can extract all relevant information from any type of document. That includes everything from PDFs to handwritten reports, images and freeform notes, as well as structured text and digital content. Manually processing these documents is time consuming and open to inaccuracy, fraud and wastage. 

By automating data extraction, insurers speed up processing times and gain a valuable bank of information that can be used to generate insights into customers and their claims.

Data enrichment 

By attaching external data points such as fraud checks, replacement prices, claims history and more, we can refine and improve customer data. This helps validate the claim, reduce waste and abuse, and identify outliers. 

Policy checking

Our technology takes all relevant information and validates it against the policy documents to check whether the claim is covered under the customer’s specific policy. This enables fast, accurate and superior policy checking and claim validation. 

Our patented NLP solution has a deep understanding of claims and insurance related language, including synonyms for the same word (e.g. waste, garbage, rubbish). As a result, it can automatically check for coverage a moment a claim is made due to its As a result, claims can be processed in real time, or far faster than before, freeing up handlers to focus on customer service.

To learn more about how Sprout.ai can help you process claims in real time, book a call with one of our claims experts