Drones are enabling the insurers to streamline claims processing along with the capability to minimize fraud.
FREMONT, CA: The insurance industry is keen on incorporating drones due to several benefits such as safety, improved efficiency, faster turnaround time, and minimal costs. With some serious transparency issues and operational challenges influencing the current insurance landscape, drones can play a crucial role in the sector. Drones capability can encourage swift, data-driven decisions in the industry, especially when we focus on insurance claims. According to a report, drone technology can assist the insurance sector in saving over 6.8 billion USD annually. In the case of claims processing, drones can offset processing expenses by up to 75 percent and significantly streamline the job of damage assessment.
Drones can significantly help the insurers with damage assessments in the properties, thereby aiding an integral aspect of insurance claims processing. Drones are even more relevant for monitoring property damages as it eliminates the need for the physical presence of the owners during drone surveillance. Further insurance firms can analyze damage faster as well as more efficient as the insurance personnel need not visit the property for manual surveillance. Drones can improve inspection efficiency by over 85 percent.
Fraud detection is another aspect of claims processing where drones offer an additional capability for the insurers. As per a report, fraud comprises over 10 percent of processing and claims related losses in insurance. The incorporation of drones can significantly offset the number of fraudulent claims. For instance, drones can assess the precise yield as well as cultivable land in the case of agricultural insurances. Further, a drone can gather data on 500 to 1,000 acres of land within a day, thereby cutting down the time required to settle claims. Similarly, drones can save massive amounts of money in the automobile industry as well. For instance, drones can assist with the random inspections of vehicles as well as other insurance risks, thereby saving time as well as resources.
Insurers realize the potential of drones in terms of transparency as well as efficiency in the claims processing and are increasingly utilizing the technology for gaining a competitive edge.