Highlights the significant impact AI can have on insurance underwriting and claims teams
NEW YORK, Nov. 18, 2024 /PRNewswire/ — Roots Automation, creator of the AI-powered Digital Coworker and InsurGPT™, the world’s first generative AI model for insurance, today announced the availability of a new whitepaper, “Solving the Insurance Industry’s Unstructured Data Challenge with AI.” The whitepaper, being released at Guidewire Connections 2024, provides an overview of the challenges and opportunities available to insurance leaders seeking to transform unstructured natural-language data – which constitutes around 80% of all data across insurance according to Accenture – into structured, machine-readable “decision data.”
Revenue leakage due to inefficient underwriting and claims represents significant loss for insurers. According to AM Best, in 2023, Property and Casualty underwriting losses totaled over $21 billion. One of the main drivers of this lost value is insurers’ inability to easily and effectively transform unstructured data into structured data for informing underwriting and claims decisions.
With human power being one of the most common solutions for trying to address the ever-growing amount of unstructured data, the information inside this data is often incompletely analyzed, misread or unused. Also, the insurance industry’s dependency on human experts to perform non-core and administrative activities (e.g., manually entering and reworking information from insurance documents) will contribute to an estimated $85-$160 billion in value lost to inefficiency by 2027, per an Accenture study.
The opportunity exists to prevent these losses by maximizing efficiency and effectiveness across underwriting and claims operations. Accenture forecasts that Generative AI will potentially automate up to 62% of underwriting and claims processes – a critical step in increasing the value created by human experts by enabling them to concentrate exclusively on higher-value tasks, rather than focusing on incorporating and attempting to understand unstructured data for decision-making. Additionally, according to Swiss Re, by using AI to extract insights from unstructured data sources, insurers can see a 12-25% improvement in their loss ratio compared with companies that don’t use these technologies.
“The insurance industry’s unstructured data challenge is massive, but for companies that effectively harness this information, the opportunities are equally as significant,” said Chaz Perera, CEO and co-founder of Roots Automation. “AI-driven solutions empower insurers to discover the value
hidden in their documents by delivering critical decision data into underwriting and claims management workflows. This enables underwriting and claims teams to be more efficient and concentrate on creating greater value through customer engagement with top-notch service and enhanced insurance products.”
Roots Automation is a Guidewire Insurtech Vanguard and sponsor of Guidewire Connections, being held November 17-20 in Nashville, TN, and the whitepaper is available at the Roots booth, V8.
For a copy of Roots’ whitepaper, visit: https://marketing.rootsautomation.com/hubfs/2024-Whitepaper-Unstructured-Data/Solving-Unstructured-Data-Whitepaper-Roots-Automation.pdf?utm_source=pr&utm_medium=article.
About Roots Automation
Roots Automation combines machine intelligence and human ingenuity in the form of advanced AI that reads, reasons and infers like humans. Roots’ AI is trained on millions of non-public insurance documents, workflows and systems and continuously learns through interactions with human teams. Roots Automation enables leading brands to liberate their teams from high-volume, complex workflows allowing them to focus on what truly matters – delighting customers with superior service and care. Roots Automation is based in New York and was founded in 2018. For more, visit www.rootsautomation.com.
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SOURCE Roots Automation Inc