The talk of the town in service delivery across the globe, including Australia and New Zealand (ANZ), is artificial intelligence (AI). The question is no longer: Could AI save insurance companies from the hassle of managing claims, especially during peak disaster events? It is now: How do we use various AI models, like generative AI (Gen AI) and agentic AI, to bolster our claims processes?
Today, heightened external pressures such as climate-related incidents are prompting insurers to pivot their risk management practices. In such a scenario, the industry needs to wake up to the insurance trends poised to shape the claims services market.
Trend #1: Gen AI and agentic AI in claims – From pilot to production
Insurance companies are now extracting genuine value from Gen AI and agentic AI in areas such as claims summarisation, correspondence generation, voice call analysis, and more. Claims automation obviously allows for agility in management, but it’s also useful in scaling up during catastrophe surges.
To quote directly from a vice president of a leading claims and risk management services, “New Zealand and Australian insurers are ahead of the curve, with 50% already using AI chatbots or generative AI tools and another 40% actively working towards it”, leaving only a tiny fraction still inactive in this area. So, if you are still in the small fraction, this is a wake-up call.
Trend #2: From cost savings to strategic outsourcing partnerships
Traditionally, insurance companies partnered with third-party administrators to save on costs. This narrative is no longer relevant and has changed as business process outsourcing and management companies have evolved. They no longer work in silos; instead, they focus on empowering their partners with advanced analytics, customer experiences (CX), digital transformation, service enablement, and a lot more.
The result is a change in perception of how insurance companies view outsourcing partnerships as the dumping ground for labour-intensive tasks. Rather than focusing on low-cost processing, the emphasis is on digital-first experiences for customers and intelligent automation. Strategic partnerships are forged to leverage advanced technologies, like agentic AI and robotic process automation (RPA), to elevate the experiences.
Trend #3: ESG and sustainability become core to claims value
Insurance companies are acutely aware that their processes to manage claims reflect their commitment to sustainability and social responsibility. This is why environmental, social, and governance (ESG) is now woven intricately and deeply into claims processing. Three aspects stand out: environmental responsibility in repairs and supply chain, social equity in service delivery, and robust governance in decision-making.
Image 1 – ESG in claims processes
On the environmental front, there is a push for eco-conscious claims handling. The Social dimension focuses on fairness, inclusivity, and community impact. Moreover, the Governance element in claims manifests as ethical decision-making, unbiased processes, and compliance with laws.
Trend #4: Heightened cyber risk and digital security focus
With AI in insurance and the claims function becoming more digital, leveraging advanced technologies, cybersecurity, and data security has become extremely important. Both regulators and insurance companies are aware of the threats that handling sensitive customer data poses. Thus, there is a concerted push to bolster digital security, privacy protections, and operational resilience in claims.
One driver of this trend is regulatory action. Moreover, insurers must enhance third-party risk management, which means the business process management and claims automation partners must be reliable and adhere to all the appropriate regulations.
Trend #5: Omnichannel and fintech-driven transformation of claims
The convergence of omnichannel digital engagement and fintech innovation is one of the most prominent trends in insurance, as it empowers insurers to reinvent the claims journey. For instance, adopting new insurance models like embedded and parametric insurance that blur the lines between insurance and other services.
Omnichannel claims service means policyholders can initiate and track claims through the channel of their choice and switch between them without losing continuity. A case in point: some Australian insurers now offer self-service E-lodgement of motor claims with guided steps to input details and instant triage to approved repairers, while still providing phone support for older or less tech-savvy customers.
How TP ANZ empowers you to stay ahead
Staying ahead of these industry trends in insurance can be challenging, and that’s where TP comes in as a valuable partner in the claims services area.
Here’s how TP ANZ supports insurers in each of the areas we’ve discussed:
1. Technology and AI enablement: TP brings state-of-the-art digital solutions, including AI-driven claims management tools and agentic AI capabilities, to augment and automate the claims workflow.
2. Strategic partnership approach: TP positions itself as a strategic partner that understands your business and goals. It brings strategic business consulting services, intelligent automation solutions, and AI-powered contact centre support to help you scale with confidence.
3. ESG alignment and customer care: TP is committed to operating as a “Force of Good” and can help insurers meet their ESG objectives in claims.
4. Robust data security and compliance: TP brings world-class security frameworks to all the data it handles. TP’s systems are fortified against cyber threats, employees are trained in privacy protocols, and extensive disaster recovery plans are in place.
5. Omnichannel customer experiences and innovation: One of TP’s core offerings is Omnichannel CX Solutions. When partnering with TP, insurers can immediately extend their claims servicing across voice, chat, email, instant messaging, and social media platforms.
It’s about “global expertise, smart solutions, and elevated CX” for your business, and TP delivers this with robust and cutting-edge customer experience. In a rapidly changing ANZ market, such a partnership can be the key not only to keeping up with industry trends but also to leading the way in superior claims services.
