Impact of artificial intelligence on the claim-handling process in insurance services: automation, augmentation, or both?

Ada Scupola, Victor Holck Abildgaard, Federica Auletta and Magnus Zwicky Riddersholm

Chapter 4 in Handbook of Services and Artificial Intelligence, 2024, pp 53-66 from Edward Elgar Publishing

Abstract: The financial and insurance sector ranks as the third-largest service sector in the European Union for investments in artificial intelligence (AI). Particularly, the non-life insurance sector is embracing AI to reshape operations in claims handling, back-office functions, and finance. This chapter delves into the contrasting logics of automation and augmentation concerning the integration of AI within the claim-handling processes of non-life insurance firms, as perceived by diverse stakeholders. To address this query, the chapter leverages AI-based process innovation and the automation-augmentation paradox, employing semi-structured interviews within three prominent Danish insurance companies. The chapter’s primary contribution lies in showcasing the automation-augmentation paradox within the service sector, notably insurance. It illustrates that the augmentation and automation paradigms are not mutually exclusive; they coexist within the same company albeit across different departments. Moreover, the chapter provides evidence of a virtuous cycle within the automation of claims management in non-life insurance companies.

Keywords: Business and Management; Economics and Finance; Geography; Innovations and Technology (search for similar items in EconPapers)
Date: 2024
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