Geico Will Use AI to Speed Up Claims
Geico Partners With Tractable
Geico, the Berkshire Hathaway (BRKB)-backed insurance company, has inked a partnership with a London-based AI startup called Tractable. Geico hopes to accelerate the way it processes vehicle repairs and accident claims using Tractable’s technology. Photographs of damaged vehicles will be analyzed by Tractable’s AI software to provide accurate estimates to insurers.
Tractable is one of several startups applying AI to eliminate some of the hassles of filing a vehicle accident claim. Under the plan, the autobody shop would first send images of the vehicle and a repair estimate to Geico. Geico would then use Tractable’s technology to confirm the estimate in minutes.
State Farm Already Uses AI
Using AI to confirm accident repair estimates may become the norm in the insurance industry. State Farm Automobile Insurance already uses AI in its claim process. When a customer files a claim, machine learning technology will predict whether it is a total loss or if repairs are in order. State Farm still uses human claims adjusters.
Geico will also rely on human adjusters, even as it rolls out the AI software. If the AI software notices an issue with the estimate provided by the auto shop, the claim will be sent to a human adjuster.
Insurance Companies Incorporate More Technology
Geico hopes that by embracing AI it can eliminate some of the frustration of filing claims for its policyholders. Currently, the process can take significant time and can cause stress for policyholders. Though AI will not solve everything, it may streamline processes and help people receive money more efficiently.
AI and machine learning are being incorporated into a wide variety of industries, including insurance. It is likely that other insurance companies will follow State Farm and Geico’s lead and will incorporate more AI and other technology into their business models in coming years.
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