The Internet of Things (IoT). Artificial Intelligence (AI). Machine Learning. Drones.

These are some of the huge trends that are impacting claims management for providers today, but which will soon collectively transform the world of insurance claims.

The Internet of Things (IoT)

The huge amount of data produced by IoT will empower insurers of all types to speed up their claims processing and offer a tailored customer experience. For instance, a truly connected home encourages consumers to assume greater responsibility for risk management, which reduces the amount of time, effort and financial resources invested by insurers. These technologies allow home owners to better control their risk, and speed and reduce future claims processes. The sensors, smart pipes, etc., installed in a connected home will generate immediate data that will help insurers understand what malfunctioned and why.

P&C carriers are also utilizing phone apps and automotive systems that furnish crucial information for automating and quickly closing claims shortly after accidents.

Artificial Intelligence (AI) and Machine Learning

“Machine learning enables insurers to take observations and findings from claims audits, pull those insights upstream and insert them into critical stages of the claims process, including investigation, evaluation and settlement. This allows insurance firms to take action to reduce claims leakage and overpayments before money leaves the firm,” according to Insurance Innovation Reporter.

Systems will improve over time at automatically assessing the impact of damage and predicting the cost of repair, based on the wealth of data from various sources that they will be processing daily. In addition, in the future insurers will be able to use AI to automatically and thus quickly detect potential fraud and trends. Powerful algorithms will comb the data from social networks and cross-reference with other systems in mere seconds.


An army of inexpensive drones will soon be fueling claims processes for insurers around the world. Rather than waiting for human specialists, who are often in high demand after weather catastrophes, insurers can quickly send drones to take pictures and record video.

Allstate used drones for spring storm damage claims. It took as few as four and a half days from when a customer reported damage for the company to issue a repair estimate. Typically, that process would take 11 days, says Glenn Shapiro, Allstate’s executive vice president of claims.

Speed is important because roofing contractors are booked quickly after a big storm hits. “We like the idea of getting our customers to the front of the line,” Shapiro says.

For more information, please check out my eBook, The ABCs of Automated Claims.

  • Artificial intelligence
  • automated claims
  • Customer Experience
  • drones
  • insurance
  • insurance software
  • Internet of Things (IoT)
  • Machine learning
  • policy administration system
  • property and casualty
Lilia Vaserman

Lilia Vaserman Lilia Vaserman is the senior vice president of product management for the Property and Casualty and Reinsurance division at Sapiens. With nearly a quarter century of experience at IDIT/Sapiens, Lilia is intimately familiar with the P&C market; Sapiens’ technology, products and services; and current and future trends.