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Vulnerable Customers, AI and Fraud – Sarah Glenn discusses with Modern Insurance Magazine

Vulnerable Customers, AI and Fraud

Vulnerable Customers, AI and Fraud – Sarah Glenn discusses with Modern Insurance Magazine

As a regular contributor to Modern Insurance Magazine Editorial Board, our Commercial Director, Sarah Glenn, talks about automation within the investigation of claims, with particular reference to vulnerable customers.

 

When we talk about automation in the investigation of fraud cases, we always remember that it is crucial to have a human input—especially when dealing with vulnerable consumers.

 

Through automation, you can streamline repetitive tasks, reduce human errors, and save costs. Our databases have been proven key in such tasks. Additionally, AI systems offer a way to analyse customer data with insights that can better inform your business decisions—leading to more personalised recommendations for customers or clients.

However, automation and AI are not meant to replace humans. Instead, they’re meant to complement our workforce by handling complex issues that may otherwise be difficult for humans deal with—and build trust and rapport with customers on an emotional level.

AI is extremely valuable when it comes to the early stages of a claim, especially those involving an individual making genuine efforts to seek compensation, however, we do feel that when it comes to vulnerable consumers, there must be a process that still heavily relies on the human element when dealing with an investigation of a claim.

As we know, the FCA has placed great emphasis on providing good outcomes for customers and protecting those that are most vulnerable. Under the Consumer Duty, the FCA will increasingly be asking for data focused on consumer outcomes with the fair treatment of vulnerable customers high on their checklist, therefore insurers will need to maximise the oversight of all their customer interactions, with a particular focus on how they are assessing vulnerability.

It’s clear that data analysis and artificial intelligence (AI) are already playing a role in reshaping the way insurers and other companies offer support to vulnerable consumers. As more regulatory frameworks around customer service emerge, these technologies may help shape them—and impact other ways we live our lives as well. While determining whether someone is vulnerable and how to support them is a very human judgment, the use of data—segmenting customers by their behaviour patterns in order to direct customer-support teams where they’re needed most—can help spot potential issues before they become problems.

In conclusion, it is clear that you should never rely on a fully automated process and to do so could affect your overall consumer journey, and we should never underestimate the resolve of fraudsters, who exploit weaknesses in fraudulent activity that can bypass detection measures—including AI. This raises important questions about whether or not organisations have been able to detect every type of fraud committed so far.

 

Sarah GlennSarah Glenn 
Commercial Director, RGI Solutions

Credit: Modern Insurance Magazine