AAUI Proposes Insurance Claims Process Using Artificial Intelligence Technology

JAKARTA - Chairman of the Indonesian General Insurance Association (AUI) Budi Herawan proposed a claim process for mandatory third-party accountability insurance (THR) for motorized vehicles using artificial intelligence technology.

"We are inevitable to have to use a digital system because Indonesia's demographics are very broad. We will also use AI (artificial intelligence) which has been used by friendly countries," said Budi Herawan in Jakarta, quoted from Antara, Tuesday, July 23.

He said that his party had studied, discussed, and exchanged ideas with related parties in China, Japan, South Korea, and Malaysia regarding the use of artificial intelligence in the insurance industry.

Not only with insurance practitioners from various countries, he stated that his party would also deepen discussions on the use of AI with the Traffic Corps (Korlantas) of the Police.

"This is very necessary because later of course without legalization from them (Korlantas Polri) the claim process cannot be processed," said Budi.

He said that the plan was that the claim process would be carried out mostly digitally by sending photos showing damage to property due to accidents to a digital platform.

Later, the estimated value of losses that become a burden on insurance service providers can be immediately known. The replacement fee will also be directly conveyed to the injured party.

"So we really have calculated the system in the future because it is impossible not to use technology," said Budi.

He said that this effort made it easier for the public to file claims because it could be done online, supported by wider access to technology in the community, which is projected to have 80 percent to 90 percent of Indonesians owning devices.

In addition, he said that the technology could also reduce the potential for fraud (fraud) in the claim process.

"We are trying not to let the chaos (chaotic)... all administrative processes will be carried out in one system that we will build. Well, we have explored this from several experienced vendors, especially those who have handled insurance," said Budi.

Even so, he realized that there are limited infrastructure to implement the digital system for mandatory insurance, especially in remote areas.

To overcome this, he stated that his party would coordinate with Korlantas and the government in order to provide financial assistance and infrastructure to build the digital system in all regions.

"Building a system requires a fee, this is what we will convey to the government. We will also be transparent how much is needed to build this platform," added Budi.