The pivotal role of AI-powered solutions in the UAE motor insurance industry

(MENAFN- Shamalcomms) Newgen Software Technologies Ltd., a global provider of low-code digital transformation solutions has been supporting multiple motor insurance companies in the region for over two decades. Vivek Bhatnagar, Head of Business, Europe, Middle East, and Africa at Newgen, explains how an AI-powered solution can streamline processes and improve customer satisfaction:

The floods in Dubai earlier this year presented a significant challenge for motor insurance companies as they waded through a record number of insurance claims in the weeks that followed. According to some insurance providers, they received 12 years’ worth of insurance claims in the immediate aftermath, with flood-related claims still being submitted over the summer months.

Estimates suggest 17 million cars will be on the road in the GCC by 2027. The flooding, the growing number of vehicle owners on the road, and subsequent insurance claims have prompted insurance companies to actively seek solutions to process motor claims more efficiently while reducing operational costs. Insurers are now seeking solutions to streamline the claims process, provide real-time data analysis, and reduce fraudulent claims while enhancing the customer experience.

For many motor insurance companies, the claims process is labour-intensive and traditionally involves manual methods. The inefficient handling of a high volume of motor claims can lead to issues such as data entry errors, the duplication of claims payouts, and cost leakages. In addition, current systems make it more difficult to identify unusual patterns or anomalies in claims data, making verification challenging.

While insurers in the UAE are leveraging various technologies to address the challenges, a more comprehensive and integrated solution is clearly needed. This solution should encompass detailed reporting and monitoring mechanisms, user-friendly interfaces, and rules-based systems, providing a complete package for efficient claims processing.

While some claims management solutions offer benefits such as data capture and risk detection, the scale of the problem in the UAE motor insurance industry demands a more advanced solution. AI-powered systems with machine learning capabilities can effectively manage high claim volumes, enable data-driven decisions, and foster collaboration across departments, offering a promising future for insurers.

Streamlining the entire claims life cycle—from the start of a claim through to assessment and settlement—is crucial. Key elements of such a solution should allow policyholders to easily capture and upload vehicle images and videos and track the status of their claims in real-time. Our motor claims management solution lets customers access a location-based list of repairers and surveyors.

The solution enables insurers to integrate third-party systems and legacy applications seamlessly, ensuring smooth information flow across the organisation. In addition, intelligent assessment auto-prioritises and allocates cases based on complexity and workload.

Through a decision support system, the claims handler can find the best estimates, trigger purchase order documents, and share relevant communication with the repairer. The system manages payment processing using AI and ML for final calculations and generates necessary documents such as settlement letters and credit notes. Monitoring and insights from AI algorithms help identify fraudulent activities, predict default probabilities, and ensure transparent claim processing through an escalation matrix and monitoring reports.

Given the high volume of claims companies have to deal with daily, time is of the essence, and the AI solution significantly reduces claim processing time while providing a 360-degree view of each claim. Another benefit is that AI and ML models effectively identify and prevent fraudulent claims by extracting and analysing historical data and shifting to a single digital solution, enabling insurers to remove the costs of storing physical documents.

As the number of motorists increases, a growing need for more efficient and effective motor insurance services will emerge, making AI indispensable for the industry. In the coming years, motor insurance companies will increasingly rely on AI to handle the higher volume of claims, optimise pricing models, and deliver a seamless customer experience, ultimately enabling them to remain competitive in a rapidly evolving market.

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