Summary:

In this episode of Insurance Unplugged, host Lisa Wardlaw speaks with Heather Wilson, CEO of Clara Analytics, about the intersection of AI and the bad faith epidemic in the insurance industry. They discuss how AI can help manage claims and prevent bad faith situations, the challenges faced by adjusters in a rapidly changing landscape, and the importance of operational intelligence in claims management.

Heather shares insights on the current state of litigation, the role of AI in augmenting adjuster capabilities, and the need for carriers to adapt to the evolving environment. In this conversation, Heather Wilson and Lisa Wardlaw discuss the integration of AI into core systems, addressing the workforce crisis, and the importance of designing for defensibility and trust in claims management.

They emphasize the need for real-time data and the role of AI in enhancing decision-making processes, while also exploring future visions for AI in the insurance industry.

Takeaways:

AI can serve as a strategic tool in preventing bad faith claims.

The insurance industry is facing an epidemic of nuclear verdicts.

Adjusters are overwhelmed by the complexity of litigated claims.

Operational intelligence is essential for effective claims management.

Plaintiff law firms are leveraging AI to gain an advantage.

Insurance carriers must adapt to the changing landscape of litigation.

AI can help identify patterns in claims and litigation strategies.

The competition between AI tools is intensifying in the legal space.

Insurance started as a safety net for unforeseen events.

Carriers need to collaborate and share knowledge to combat litigation challenges. Clients want integrated solutions that combine document intelligence and workflows.

AI must be embedded in daily operations for effective use.

Real-time data is crucial for managing claims effectively.

The insurance industry has lagged in adopting real-time processes.

APIs alone are insufficient for modern challenges in claims management.

The core systems must evolve to incorporate AI capabilities.

There is a significant talent crisis in the insurance industry.

AI can help manage cognitive load for adjusters.

Explainability in AI is essential for building trust.

The future may see AI agents taking on roles traditionally held by humans.

Sound Bites:

"The competition of the bots is real."

"You have to level up in the era of AI."

"They want all of it together."

"It can't be this side process."

"The intelligence has to be served up."

"It's triaging a human as a patient."

"Real time or near real time on the cases."

"APIs are killing me."

"You have to have all that instrumentation."

Keywords:

AI, bad faith claims, insurance, operational intelligence, litigation, Clara Analytics, Heather Wilson, claims management, data analytics, insurance technology, AI integration, workforce crisis, document intelligence, claims management, insurance technology, real-time data, agentic AI, litigation strategy, explainability, trust in AI