Credit Insurance Industry Uses AI Technology To Face Spike In Claim Ratio

Photo: Special

JAKARTA - The surge in claims in the credit life insurance industry has prompted industry players to innovate to find solutions. PT Seleris Meditekno Internasional (Seleris) and PT IDPay Asia Jaya (IDPay) also synergize to provide artificial intelligence (AI) technology in the risk selection process or underwriting.

This collaboration marks a new era in the underwriting process of credit life insurance in Indonesia, which was originally carried out conventionally, can now be done digitally using artificial intelligence, real-time, and accurate when customers apply for credit at financial institutions.

The Artificial Intelligence-based Credit Selection Platform will be integrated directly into IDPay's All-in-One ID Card Reader or Electronic Data Capture (EDC) devices spread across thousands of banking outlets and financial institutions throughout Indonesia.

"We are developing artificial intelligence technology that fundamentally changes the way the industry is doing underwriting," said Founder of PT Seleris Meditekno Internasional, Rinaldi Anwar Buyung, Friday, October 31.

Rinaldi said the Credit Seleris platform has also received recognition from global reinsurance companies with minimum AM Best and S&P A. This admission underscores that AI-based platforms from the Seleryis meet international standards in the risk selection process and underwriting of credit life insurance.

"This is not just a technological innovation, but a real solution to save the credit life insurance industry from collapsing underwriting quality," he said.

Furthermore, Rinaldi also hopes that the wide reach of IDPay infrastructure can support banks and financial institutions in improving the quality of credit portfolios.

They conducted an in-depth audit of our AI algorithm, the risk assessment methodology, and the track record accuracy of our predictions. Their trust is proof that Indonesian technology is able to compete at the global level," he said.

Meanwhile, the Chief Business Development Officer of PT IDPay Asia Jaya Adrian Kurniady said the underwriting process was also being transformed. He said Al's algorithm was able to carry out risk assessments in just seconds.

Adrian said this process was designed to be more accurate and standardized thanks to machine learning technology that has been trained with millions of data.

"This is a historic moment that marks the realization of integration between financial and health services in Indonesia," he said.

The two companies also emphasized that the entire process will comply with the Personal Data Protection Law Number 27 of 2022 and other related regulations. Also, layered security systems and encryption at the entrance level ensure that customer data is maximally protected.

This solution is expected to reduce the ratio of claims to a sustainable level. Thus, the impact of credit life insurance products can be more affordable and sustainable in the long term. As well as maintaining public access to quality insurance protection.