Leveraging AI to manage loss claims during hurricane season Catastrophe modelers expect insured losses from Hurricane Ida to reach between $18 to $29.5 billion. (Photo: ssguy/Shutterstock)

The North American hurricane season is well underway, which means insurers are hard at work managing customer policies and processing claims. After last year’s record-breaking season, insurance companies must be prepared for the impending tsunami of claims and the corresponding deluge of paperwork. And this year, there’s been no shortage of damage and devastation. Hurricane Ida recently left more than 1 million homes and businesses throughout Louisiana and Mississippi without power for weeks. For insurers, this is a different type of calamity, especially with homeowners and businesses needing to cash in on multiple policies related to tropical storms.

Though it will take months to actually calculate the total losses related to this storm, insured losses are forecast to reach between $18 to $29.5 billion, according to catastrophe modelers. All of which accounts for insured losses across Ida’s entire track for onshore wind and private flood losses as well as adjustments for increased materials and repair costs. And the cost for insurance carriers is exponential as well. Outside of the obvious cost of claim payouts, processing losses has historically equated to an uptick in human resources. This causes more complexity, cost, time and manual effort to review each claim, enter line-by-line and process all other related documents.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PC360 Evolving Risk Summit 2023Event

A Conference Designed to Help Insurers and Risk Managers Stay Two-Steps Ahead of Property & Casualty Evolving Risks.

Get More Information
 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.