Prudential applies AI to streamline claims processing

Tran Le Quoc Son, Chief Information Officer at Prudential Vietnam

Following this trend, businesses are also at the forefront of adopting technology in their operational processes and service offerings.

For example, in the life insurance sector, amid updates and amendments to the Law on Insurance Business, insurance companies are leveraging technology as a new approach to adapt to the market landscape. Tran Le Quoc Son, Chief Information Officer at Prudential Vietnam, said, “Digital transformation and technology adoption will contribute 80-90 percent to the implementation of the regulations of the new insurance law.” “This is a catalyst for insurance companies to upgrade themselves and retain customers with the goal of sustainable development,” he added.

Specifically, insurance companies have been applying technology in their operating processes to handle vast and complex customer databases. This has helped companies optimize their operations and save costs, especially in adapting to the new wave of changes brought about by the Law on Insurance Business.

A prime example is Prudential, one of the first insurance companies to shift its traditional claims and payout processes to the e-claim system since 2018. This innovation allows customers to easily submit claims through online portals, such as Prudential Vietnam’s official Zalo page or via the PRUOnline app and website.

Recently, Prudential has continued to apply new-generation OCR technology (Optical Character Recognition integrated with AI) to automate the claims process for urgent insurance benefits, such as healthcare, hospitalization support, and surgeries. Developed by VinBigdata, this new-generation OCR technology likened to a “smart-eye” allows the system to automatically read and analyze information on insurance documents submitted by customers in image form.

As a result, customers can receive immediate feedback from the system regarding the validity of their documents, instructions on submitting the correct and complete documents, as well as instant notifications on the outcome of their insurance claims. At the same time, sales agents can closely monitor customer's claim progress and provide timely assistance when needed.

With adequate investment in digital transformation, Prudential’s technological initiatives have gradually met the needs of insurance customers

Since it was put into use in mid-October 2024, the new-generation OCR “smart eye” has supported the processing of more than 50 percent of insurance eclaims, significantly reducing customer waiting time. In many cases, results are provided within minutes from the time the customer submits their request until they receive the payout decision from the system.

In recent years, Prudential has also implemented a comprehensive range of solutions to gradually improve its technological infrastructure, with over 90 percent of its infrastructure currently using the cloud computing technology. This foundation enables Prudential to continuously apply new technologies, including AI, to optimize service processes and enhance its payout capabilities for the benefit of customers.

Up to the third quarter of 2024, Prudential has recorded 87 percent of claims submitted online. In which, 92.828 compensation cases were processed, resulting in an impressive 91 percent approval rate for insurance claims. This means that for every 10 claims submitted, 9 are approved for payout.

With adequate investment in digital transformation, Prudential’s technological initiatives have gradually met the needs and addressed the challenges faced by insurance customers. This has helped Prudential win the “Insurance Claims Initiative of the Year” category at the Insurance Asia Award 2024.