The insurance industry, a cornerstone of economic stability in the modern era, is currently in the midst of a transformative paradigm shift. With its roots dating back to the dawn of capitalism, insurance has always been a necessity, providing a safety net for individuals and businesses alike. Yet traditional manual insurance underwriting and claims management processes are poised to be redefined by the integration of artificial intelligence (AI) and big data.
Owl.co, a Delaware-incorporated insurance company, appears at the forefront of this revolution, using its revolutionary platform as a beacon of transparency and objectivity in a rapidly transforming industry.
Historically, insurers have relied on a triad of information sources when reviewing claims: claimant data, employer records, and medical information. This triad, although proven and reliable, has its limits. Manual claims review is a time-consuming and resource-intensive process, with the challenge of separating eligible claims from those that are not. This critical task requires rigorous diligence and unwavering consistency without introducing bias into the process, often impossible to accomplish with traditional manual processes.
Additionally, in recent years, the insurance industry has come under scrutiny, facing increased scrutiny due to alleged bias and discrimination in its risk assessment practices. Consumer advocates and regulators have questioned the industry’s reliance on factors such as ZIP codes and credit scores to set rates and determine risks. These factors, they argue, can serve as indirect indicators of racial or socioeconomic discrimination.
Harnessing AI and Big Data to Improve Transparency and Efficiency in the Insurance Industry
“There is a growing demand for transformation in the insurance sector,” explains Sean Merat, the dynamic CEO and co-founder of Owl.co. “We need systems that provide a fairer and more equitable experience, reduce potential bias and significantly improve efficiency.”
To meet this need, Owl.co introduced a new perspective to the traditional triad: a sprawling network of publicly available data. This additional perspective acts as a powerful resource sorting through 260 million people records, 220 million business records, as well as billions of publicly available data sources, providing a wealth of external evidence that can complement existing data sources to uncover information previously inaccessible to insurers. Using its AI-powered platform, Owl.co is able to efficiently analyze thousands of these data points, gather accurate and relevant evidence to surface and prioritize relevant information and claimant activities so that insurers can make faster decisions with more confidence at the right time.
Merat specifies: “Owl.co does not replace human judgment but rather an amplifier. Our goal is to provide evidence-based information that helps claims management teams focus on high-priority cases while improving efficiency and fairness.
This innovative application of machine learning to insurance claims management shows promise in reducing not only the cost and time associated with claims review, but also the potential for bias. Rather than relying on a few controversial factors, insurers can now leverage a wider range of data sources. This wealth of diverse data brings a new level of depth and nuance to risk assessment practices.
The transformative potential of this technology has not gone unnoticed by industry stalwarts. Although a startup, Owl.co has already attracted the attention of top insurers in North America. Their commitment to privacy, reflected in their “Privacy First” policy, has been key to their success, earning them the trust of their partners. After impressive coverage of the North American market in a relatively short period of time, Owl.co launched Owl Nest, calling it the fastest growing searcher network. By becoming an Owl.co customer, insurers can leverage industry best practices at their fingertips and compare key metrics in real-time, all powered by AI that constantly learns from every claims decision across the entire spectrum. network.
The early success of Owl.co and similar platforms marks the beginning of a significant shift in the insurance landscape. While the delicate balance between maintaining fairness and managing risk remains, the potential of AI and Big Data to improve transparency and efficiency is becoming increasingly evident.