Original text here from Patrice Bernard (LinkedIn)
As part of its mobile phone insurance offering distributed through its partnership with Orange, BNP Paribas Cardif is launching an instant claim acceptance option for breakage and oxidation incidents at the start of this year. This feature is powered by artificial intelligence and aims to expedite compensation processes.
Now, the million customers of the operator who have subscribed to this warranty will be offered a "fast track" for their claims (with no obligation, as the option to speak directly with an agent remains available if declined). The platform then automatically analyzes the submitted information and the individual's history, making a decision in five seconds, compared to the current average of two hours.
This acceleration promises a significant improvement in user experience: beyond the time saved, it's especially the reduction of the period of uncertainty before receiving a response that makes a difference. With Orange's previously implemented 24-hour exchange service, the stress of being without a smartphone is (almost) alleviated. However, it's regrettable that a more environmentally friendly repair option isn't prioritized within the same timeframe.
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Nevertheless, I'm curious about customer reactions, particularly those whose claims are denied by the algorithms, when they realize that the machine's judgment of their case is primarily based on an evaluation of their behavior as reflected in their interactions with their provider. The principle is certainly valid and one can trust an insurer to have tested its implementation, but what about its perception by the affected customers?
Looking slightly into the future, the next step could be a parametric contract. Instead of requiring the customer to initiate the process, the computing power in modern devices could perhaps detect signs of a material defect and autonomously manage the entire claims process. Its significant advantage would be eliminating the need to analyze the claimant's profile, along with the implicit suspicion that comes with it.
Regardless, unless there's a strong consumer backlash, such automated approaches are likely to become more widespread in the insurance world. Not only do they offer benefits in terms of customer satisfaction, but they are also attractive due to their potential to reduce the high costs of human processing in routine operations. But, of course, the early adopters in this field will insist that it's not about replacing employees with AI.
