Loss adjusters have to become data partners for insurers

The role of loss adjusters will remain relevant into the future provided they evolve into digital partners for insurers to harness new technology in delivering a superior claims outcome.

That is the view of Sedgwick’s CEO for Asia James Ong who delivered an impassioned opening presentation at the Asia Insurance Claims Summit yesterday, where he made the case for why loss adjusters will remain important despite disruptive forces.

In order to do that, loss adjusters would have to continue adapting to new ways of working and fit into the modern reality of insurance where technology, partnerships and customisation have become common themes, he said. He added the claims process needs to be customer-centric, and that loss adjusters must leverage the latest technology such as drones, image recognition, chatbots and artificial intelligence.

“Loss adjusting companies have to become an integrated part of insurers’ digital claims solutions in the future,” said Mr Ong. He elaborated that loss adjusters can act as valuable data providers to insurers through the repository of losses that they hold, and that data analytic capabilities will be a key differentiating factor for loss adjusting firms moving forward.

Humans & robots complement each other

Mr Ong said that smaller and simpler claims may increasingly be processed through automation, but specialist loss adjustors are indispensable for major complex losses. “High end major complex losses is where loss adjusters can really showcase their skillsets,” he said. 

In that regard, human empathy as well as good communications and project management skills are traits which AI cannot replicate, said Mr Ong. He also added loss adjusters would succeed better than AI at policy interpretation, as humans fare better at sifting through facts and legal documents that may contain loopholes which machines lack the nuance to pick up.

And while there will still be roles for generalist adjustors, emerging risks such as cyber, reputational damage and contingent business interruption are exciting areas for the development of specialist loss adjusters, said Mr Ong. The two-day conference, organised by Asia Insurance Review, ends today. 

Source: Asia Insurance Review