Could AI help super funds solve claims handling?

Artificial intelligence could be a part of the answer to superannuation funds addressing their shortcomings on process death benefits and insurance claims, according to technology innovation company, Novigi.

In the wake of the problems which confronted Cbus and AustralianSuper, Novigi has pointed to the degree to which processing d3ath benefits and insurance claims remains a highly manual and human dependent exercise for superannuation funds.

“Trustees must navigate a web of legal, procedural, and interpersonal challenges, balancing regulatory compliance with sensitive family dynamics,” Novigi’s Kevin Fernanez and Sophie Coianiz said in a newly published analysis.

While pointing to the possible shortcoming associated with exposing grieving claimants to artificial intelligence, they suggested that superannuation fund staff could treat AI in the same manner as an experienced and knowledgeable coworker.

“An AI coworker would be made available to claims processing teams via enterprise messaging platforms like Slack or Microsoft Teams, and would need to be able to field queries from staff and perform tasks including:

• • Extracting key information from documents, including death certificates, forms, evidence of relationship, medical records, wills, probate, etc.
  • Assisting with drafting emails and other communications to claimants.
  • Proposing an allocation of the death benefit to each beneficiary based on the same factors a human would consider, plus a complete database of previous cases handled by the fund.
  • Giving guidance on what activities still need to be completed, and how they should be handled to ensure compliance.
  • Assisting with record keeping and the maintenance of an audit trail.

If implemented correctly, an AI coworker of this kind could both increase the productivity and consistency of existing claims staff and dramatically reduce the amount of time it takes for new team members to become capable and productive. This kind of approach would make it possible to rapidly address short staffing, and to scale up when volumes spike.

While AI and other technologies hold immense promise, their success hinges on careful implementation and oversight. By combining the power of automation with human expertise, superannuation funds can ensure that they meet regulatory demands while also improving outcomes for grieving beneficiaries.