About 90% of insurers in Australia have either implemented or are in the process of introducing chatbots or generative AI for claims resolutions, and 98% anticipate improved speed and efficiency, Gallagher Bassett’s annual survey says. 

There is “a growing acceptance of generative AI and chatbots” despite apprehension over the complexities of integrating AI, the Carrier Perspective: 2024 Claims Insights report says. 

Customer service is the most common application of AI among Australian insurers, and the 90% adoption rate here is much higher than that of global insurers.  

AI is also utilised more in claims processing in Australia (58%), as well as in risk assessment operations (35%), the report says, though use in underwriting operations in Australia was just 19%. 

Globally, the survey found 67% of insurers use generative AI chatbots in customer service. 

Insurers are also leveraging AI during training to streamline claims adjusting, with 44% of insurers worldwide and 35% in Australia saying an AI-powered workforce is an effective strategy to retain employees. 

"By embracing digital transformation, insurers can increase efficiency and cost savings, benefiting both themselves and their policyholders,” Gallagher Bassett Australia Head of Sales and Client Services General Insurance John White said. 

“It is going to be exciting to see how insurers proactively embrace external expertise, data-driven insights and other key tools.” 

Gallagher Bassett is prototyping AI applications in claim management and settlement, first notice of loss sentiment analysis and scanning for risk signatures, claims assignment, investigation, and the refinement of models with unstructured data. 

However, the survey says only 37% of insurers are incorporating new technologies for assessing disasters and resolving claims following severe weather events, and among Australian insurers only 30% are embracing these new technologies. 

Best practices include satellite imagery, 3D technology, and predictive modelling technologies to analyse large datasets, such as historical weather patterns and claims data.  

“This could help in the identification of recurring patterns and the assessment of the potential severity of weather events, facilitating swift and comprehensive damage assessments,” Gallagher Bassett said.  

“Easing concerns over the integration of AI and establishing best practices in everyday operations is pivotal for the industry’s future."