AI can save US insurers $7B in admin costs, Accenture says

U.S. insurers can unlock $7 billion in total value -- 10-15% of operating expenses -- in 18 months by using artificial intelligence to automate certain core administrative functions, according to a new study from Accenture. The savings could stem from streamlining core functions for payers across the board, including customer service, billing, enrollment, claims and quality and compliance. Automating these functions for an individual health plan would bring in $1.5 million in operating income for every 100 full-time employee by the end of next calendar year for large and small payers alike, the report concludes. In 2017, 72% of payer executives said that, within the year, AI would be among the top three strategic priorities for their organizations, according to a separate Accenture survey, adding to industry buzz around the technology's potential. The top three current areas to target for near-term value were anticipating and resolving customer questions, improving the benefits loading and design process and accelerating prior authorization and clinical review of claims.