ARTIFICIAL INTELLIGENCE & TECHNOLOGY
The challenges of claims management in Mexico
28 September 2022 · By Ana Navarrina
The insurance sector in Mexico is facing many of the same challenges as other parts of the world. Technology is only just finding its place in insurance, and there is a big opportunity for insurance companies in modernizing certain practices.
Right now, Mexican policyholders face a long wait before the claims process really gets underway. When a claim occurs, the insured party needs to remain at the scene until an insurance adjuster arrives to assess the damage. In many cases, this may involve a wait of up to an hour. Now, imagine you’re on the road out of town with no facilities close by — that’s a difficult and potentially uncomfortable wait.
In this post, we’re going to look at the claims process in Mexico and how it can improve by incorporating AI and Visual Intelligence into the process. We’re also going to touch upon how Bdeo is already kick-starting the digital revolution with our client Zurich Mexico and how we can do the same for your insurance business.
Claims management challenges in Mexico
We could talk all day about how the lack of modern tech is slowing down claims management in Mexico, but the truth is, it’s a much simpler problem. It all boils down to traffic.
Mexico City (CDMX) has the most road traffic in the world. That’s not hyperbole, recent studies confirmed what every Traficalino already knew — the city is among those with the worst traffic in the world. It’s estimated that wasting time in traffic reduces employee productivity by around 30% and can contribute to significant health problems.
The most recent TomTom Traffic Index, published in 2022, ranks the city as the 28th most jammed city in the world, a big decrease since it was top 1 in 2017. However, at the time this article is being written, there is an 81% congestion level and 1588 active traffic jams. This means that a 30 minute trip takes almost an hour to complete.
This causes immense problems for insurance agents. Imagine you’re on the outskirts of Mexico City, and your insurance agent is deep in the city's heart. That agent will be stuck in traffic much longer than it would take to assess the damage.
So, what can insurers do to make the claims process quicker and easier for policyholders and agents alike?
How AI and VI can change the claims management process in Mexico
Given that we can’t do much about the traffic on the roads, we have to think a little more creatively. If we turn to technology, we can start eliminating the challenges we face every time a policyholder triggers the claims process.
Artificial intelligence (AI) and machine learning (ML) are quickly transforming the insurance sector, as we have seen with our collaboration with Zurich Mexico. AI can speed up turnaround times, detect fraudulent claims, and so much more, offering benefits to both the insurer and the insured.
By partnering with a Visual Intelligence (VI) and Artificial Intelligence specialist like Bdeo, insurers can incorporate VI into the process to speed up the entire claims process for policyholders.
With VI, the insured parties can start the claims process with a single button. They can then gather their own evidence with the help of the app’s VI assistant, gathering valuable and accurate data. This completely removes the need for an in-person assessment, which saves the policyholder a lot of time, and reduces the travel expenses insurers need to account for when sending out assessment agents.
Technology can improve a lot more than just the assessment stage — it can help accelerate the entire claims process.
AI and ML processes can sort through countless previous case files and compare them to the current claim. By comparing to previous cases, the AI can detect irregularities that could be signs of fraud. This can include obvious signs — like differences in witness statements — or more nuanced signs that might get missed without AI.
The AI then takes the data provided by the claimant and can assess the damage, check for signs of fraud, and even approve the claim if no issues are flagged. The whole claims process can be completed within minutes, offering a cost-effective solution for the insurer and peace of mind to the insured.
Adopting AI and VI has major benefits for insurers too. Their agents spend less time analyzing and more time building strong relationships with policyholders. Insurers also benefit from higher customer satisfaction levels thanks to faster settlements based on reliable data.
Don’t just take our word for it. Our case study with Zurich Mexico shows how technology can radically improve the customer experience.
Since CMDX’s branding as the city with the worst traffic in the world, Zurich Mexico has been on a quest to improve policyholder's experience. They came to us trying to reduce their claims handling and processing times. We’re more than happy to say that’s exactly what we did for them.
Thanks to Zurich Virtual Adjustment by Bdeo, the company has been able to offer immediate attention to its policyholders, reducing the authorization time for repair centers from 24 hours to just 5 hours.
This was made possible through Bdeo’s revolutionary technology, such as Bdeo SmartVideo. Policyholders can now communicate with a virtual adjuster and are sent an SMS with a link to connect to a video call. During this call, the adjuster can assess damage remotely and resolve the adjustment process in far less time than it would have taken for them to travel to the scene.
To learn more about the impact Bdeo’s technology could have on your insurance company, make sure to download our Zurich Mexico case study.
Looking to reap the benefits of modern technology for your insurance company? Get in touch with us today!
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