Crashing into a New Era: Using artificial intelligence to assess car damage and speed up insurance claims

June 20, 2020

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2 min read

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What's going on here?

Identifying the need for greater productivity in insurance claims, Alex Dalyac, Razvan Ranca and Adrien Cohen collaboratively established the artificial intelligence software Tractable, enabling swifter identification of damage on car bodies and the calculation of costs incurred as a result of car crashes.

What does this mean?

Tractable’s artificial intelligence offers a simple three-step process for assessing vehicle damage:

  1. “The appraiser repairer uploads an estimate and pictures to…(the) claims management system”;
  2. Artificial intelligence then “compares the pictures and the estimate, and accurately judges the repair operations”;
  3. An assessment which flags any inaccuracies is received.

By simplifying claims by means of artificial intelligence, Tractable can assess car damage in real-time. Meaning that rather than having to wait days or even weeks for human appraisal, Tractable’s method enables the process to be sped up tenfold. 

When generating the estimation of damage, cost of repair and labour required, Tractable scours the database  containing “millions of real images of car accidents and repair operations” to compare to. The data available is so extensive that it dwarfs the experience of any human in the automobile assessment field. By exceeding the experience of humans with even a lifetime of experience, and reducing the likelihood of inaccuracies resulting from human error arising, this proves how the incorporation of artificial intelligence in the insurance sector can save both time and money.

What's the big picture effect?

Looking towards the future, we must consider the long-term potential of artificial intelligence for both the assessment of claims and settlement purposes. 

Tractable offers many benefits of efficiency, accuracy and productivity across the insurance sector, particularly when “over $1bn in auto claims” have been processed for leading insurance firms such as Tokio Marine, Talanx-Warta and Covea across the globe. It is, therefore, unsurprising that insurance firms are keenly embracing the availability of artificial intelligence.

Moreover, it is important to recognise that artificial intelligence is not limited to insurance claims for cars but can be appropriately adapted for a range of incidents, as proven by Tractable’s application to assessing damage incurred by natural disasters. Such disasters impact “hundreds of millions of people” every year and bear the financial impact of over $1 trillion globally. The use of Tractable and other AI in insurance could allow for faster evaluation of damage and therefore faster payouts, allowing devastated areas to rebuild in a shorter time.

When benefits in efficiency and profits are to be gained by use of artificial intelligence in insurance claims, it is difficult to dispute Adrien Cohen’s outlook that its expansion “is not a matter of if – it’s a matter of when”.

Report written by Karolina Smolicz

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