In the fast-paced world of insurance, efficiency in claims processing is paramount to ensure timely settlements and client satisfaction. In 2022, Allianz made substantial global investments in IT, totaling $5.7 billion, with a significant allocation dedicated to advancing AI technologies. Within Allianz Commercial, a collaborative initiative named the GenAI exploration program has been established in conjunction with Allianz Consulting and Microsoft. This program is designed to investigate various use cases on a global scale, with a focus on developing an internal application that mirrors the functionalities of public Large Language Models (LLMs) while ensuring safety and security. “We see LLMs working very well for general language tasks, but they are not yet designed for the specific technical language we use in insurance, such as legal analysis of policy wordings or claims handling,” says Maneesh Mistry. “GenAI models need to be further trained and customized for the language, data, and processes of our industry. This is the focus of our use cases.”
The exploration of these use cases spans the entire Allianz Group, with a keen eye on identifying potential synergies across different entities and fostering the exchange of insights and knowledge. Allianz Commercial has already embarked on several example use cases as part of this GenAI exploration. These cases include the training of intelligent chatbots capable of addressing inquiries related to risk appetite and underwriting 24/7. These chatbots operate in multiple languages across various channels, providing a seamless and efficient customer interaction experience. Additionally, GenAI is employed to distill key exposures and generate content using cited sources and databases, thereby enhancing the precision of risk assessments.
In a significant step forward in streamlining its marine claims in North America, it has introduced Neptune, an innovative AI-enabled tool equipped with a management ‘cockpit.’ This tool promises to revolutionize the claims management process, providing real-time insights, automation, and improved overall efficiency.
The Challenge Before Neptune:
Prior to Neptune’s implementation, the claims team at Allianz Commercial faced challenges in manually assigning each new claim to the appropriate claims adjuster. This process relied on static business rules and often incomplete information, leading to delays and potential inaccuracies in the assignment process. The need for a more dynamic and automated solution was evident to enhance the first notification of loss (FNOL) stage.
Neptune’s Arrival:
Neptune emerges as a game-changer, introducing AI capabilities to expedite and optimize the claims management workflow. This AI-enabled tool leverages real-time information, including workload distribution across departments, teams, and individual adjusters. The incorporation of a user-friendly management ‘cockpit’ ensures that claims managers have a comprehensive overview of operations, facilitating better decision-making.
Automated Assignment of Claims:
One of the standout features of Neptune is its ability to automate the assignment of claims cases to adjusters during the FNOL stage. Traditionally, this task required manual intervention, with claims adjusters being assigned based on static rules and incomplete information. Neptune’s automation capabilities streamline this process, enabling claims to be assigned promptly and accurately with just a few clicks. This not only expedites the claims handling process but also ensures that each case is directed to the most suitable adjuster, enhancing overall efficiency.
Real-time Key Performance Indicators (KPIs):
Neptune goes beyond merely automating claim assignments; it provides claims managers with real-time Key Performance Indicators (KPIs). This feature offers a daily updated overview of workloads, allowing claims managers to make informed decisions based on current and dynamic information. The ability to monitor and assess team and individual performance in real time empowers claims managers to address bottlenecks promptly and allocate resources effectively. “AI enables insurers to enhance their value proposition by better predicting and therefore preventing risks,” says Michael Bruch, Global Head of Risk Consulting Advisory Services, Allianz Commercial. “AI depends on having good-quality data. We are constantly evolving and expanding our data quality across the business at Allianz – not only at Allianz Commercial, but across all Allianz entities – to train the models we use. This can help us assess and model extreme weather events, for example, gathering data on secondary perils such as floods. Or, by constantly improving the granularity of our location data, we can help corporate customers better identify climate-risk exposures.”
User-Friendly Management Cockpit:
Neptune’s user interface includes a management ‘cockpit’ designed for ease of use. This dashboard-style interface consolidates relevant information, presenting it in an accessible and visually intuitive manner. Claims managers can navigate through real-time data, gaining insights into workload distribution, adjuster performance, and overall claims processing metrics. The user-friendly design ensures that claims managers can make data-driven decisions with minimal effort.
Benefits of Neptune Implementation:
The introduction of Neptune brings a multitude of benefits to Allianz Commercial’s marine claims processing in North America. Some of the key advantages include:
Efficiency: Automation of claim assignment reduces manual workload, enabling a faster and more accurate FNOL stage.
Accuracy: Dynamic assignment based on real-time information ensures that each claim is directed to the most suitable adjuster, minimizing errors.
Transparency: Real-time KPIs offer a clear and up-to-date overview of workloads, facilitating transparent decision-making.
Resource Optimization: Claims managers can allocate resources more effectively, addressing bottlenecks promptly and ensuring optimal team performance.
Enhanced User Experience: The user-friendly management ‘cockpit’ provides an intuitive interface for claims managers, promoting a positive user experience.
Neptune’s integration into Allianz Commercial’s marine claims processing represents a significant step toward modernizing and optimizing the insurance workflow. By leveraging AI capabilities, Neptune addresses the challenges of manual claim assignment and provides real-time insights that empower claims managers to make informed decisions. As the insurance industry continues to embrace technological innovations, tools like Neptune exemplify the potential of AI to enhance efficiency, accuracy, and overall customer satisfaction in claims management. “The new technology means insurers will be able to draw on larger datasets to improve their processes, from automating customer support and manual tasks to honing risk modeling and predictions. It will also facilitate data entry, data cleansing and the classification of data,” says Meenesh Mistry, Business Model Transformation Executive at Allianz Commercial.
