Roots Automation’s recent whitepaper highlights how artificial intelligence (AI) can help insurers address the costly inefficiencies of processing unstructured data, ultimately improving underwriting and claims operations.
The whitepaper underscores the significant losses insurers face due to inefficient underwriting and claims. In 2023, Property and Casualty underwriting losses surpassed $21 billion, according to AM Best. A major factor contributing to this is insurers’ difficulty in transforming unstructured data into structured data for informing underwriting and claims decisions.
Human power is often relied upon to manage the growing volume of unstructured data, but the information within it is frequently incomplete, misread, or unused. Additionally, the industry’s dependence on human experts for non-core and administrative tasks—like manually entering and correcting information from insurance documents—could lead to an estimated $85-$160 billion in lost value by 2027, according to Accenture.
There is an opportunity to prevent these losses by maximising efficiency and effectiveness across underwriting and claims operations. Accenture predicts that Generative AI could automate up to 62% of these processes, allowing human experts to focus on higher-value tasks rather than managing unstructured data.
Swiss Re also reports that using AI to extract insights from unstructured data can improve insurers’ loss ratios by 12-25% compared to those not leveraging these technologies.
Chaz Perera, CEO and co-founder of Roots Automation, said, “The insurance industry’s unstructured data challenge is massive, but for companies that effectively harness this information, the opportunities are equally as significant.”
He added, “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.”
