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

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

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

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.
Original languageEnglish
Title of host publicationHandbook of Services and Artificial Intelligence
EditorsAda Scupola, Jon Sundbo, Lars Fuglsang, Anders Henten
Number of pages14
Place of PublicationCheltenham
PublisherEdward Elgar Publishing
Publication date2024
Pages53-66
Chapter4
ISBN (Print)9781035301966
ISBN (Electronic)9781035301973
DOIs
Publication statusPublished - 2024

Keywords

  • Artificial intelligence;
  • Automation
  • Augmentation
  • Insurance
  • Services
  • Claim-handling process

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