Hanwha Life Introduces AI in Insurance Claim Payment Review

Shortening the Period from Insurance Claim to Receipt

Expected Cost Savings of Over 10 Billion Won in 5 Years

[Asia Economy Reporter Oh Hyung-gil] Hanwha Life announced on the 15th that it will introduce a 'Claim AI Automated Review System' in which artificial intelligence (AI) reviews insurance claim payments in real time on the cloud.

The system is characterized by AI independently creating regulations related to insurance claim payment decisions through machine learning and reinforcement learning, and deciding on payment approval, denial, or investigation. Hanwha Life developed the system by verifying the consistency of processing results through a total of 35,000 learning processes using 11 million insurance claim data over the past three years.

It also introduced a real-time cloud operation model for the first time in the insurance industry. Designed as a hybrid method integrating the cloud with the company’s own data center, it offers various advantages such as service stability, customer information protection, and cost efficiency.

Hanwha Life aims to apply automated review to up to approximately 50% through this system. Currently, the automated review rate is about 25%, and they plan to double it through AI automated review.

The period from insurance claim to receipt is expected to be shortened. Additionally, the system will handle low-risk reviews, improving review efficiency. It is expected to reduce the time and cost required for reviewing small insurance claims such as indemnity insurance. Over the next five years, a cost reduction effect of more than 10 billion KRW is anticipated.

Lee Jun-no, head of Hanwha Life’s Insurance Core S Construction TF Team, explained, "With the recent increase in indemnity insurance claims and the growth of contracts held, the number of insurance claims is increasing every year. As the automated review rate increases, existing review personnel will be able to focus on more complex cases, and customers will be able to receive insurance payments more quickly."

Meanwhile, Hanwha Life has been building a next-generation insurance core system since last year, aiming to complete it by the first half of 2022, which will newly create IT systems for product development, customer service, and insurance claim payments.

This content was produced with the assistance of AI translation services.