AI-driven automation is helping insurers reduce turnaround times, while strengthening fraud detection and operational efficiency. Artificial intelligence (AI) is rapidly becoming a core part of South African insurers' operating models, with firms using the technology to automate quoting, accelerate claims processing, strengthen fraud detection and improve customer service. While approaches differ, insurers increasingly view AI as a practical tool for improving efficiency. while allowing human specialists to focus on more complex cases.Naked Insurance, King Price Insurance and Discovery Life tell ITWeb they have all embedded AI into key parts of their operations, although each has prioritised different areas of the insurance value chain."Our most important design principle was not to modernise a traditional insurance system, but to build an AI-first business from the ground up,” explains Ernest North, co-founder of Naked Insurance, which was built as a digital-first insurer.“AI and automation are embedded across the entire customer journey, from underwriting and policy administration, to claims processing and customer self-service. This enables us to deliver greater convenience for customers, while reducing operating costs." See also According to Naked, AI enables customers to receive binding insurance quotes online in under 90 seconds. Rather than relying solely on traditional actuarial models, the insurer combines multiple data sources with AI algorithms to assess risk and generate personalised premiums.The company has also automated a range of back-office processes, including data entry, premium calculations and payment processing, reducing manual intervention and operational costs.Customer engagement is similarly AI-driven. Naked's chatbot, Rose, guides customers through purchasing and managing policies, while its claims assistant, Jade, helps customers report incidents and track claims around the clock. According to North, human consultants remain available for more complex queries.AI also plays a significant role in claims processing."Our AI algorithms assess claims within seconds, allowing straightforward, low-risk claims to be approved almost instantly, while more complex cases are referred to human specialists. “For certain claims, such as windscreen repairs, almost every claim is approved automatically without human involvement. This means customers receive faster outcomes, while our teams focus their expertise where it adds the greatest value," states North.King Price Insurance says it has focused much of its AI investment on improving claims processing and fraud detection.Over the past two years, the insurer's enterprise AI division has developed proprietary AI models that support every personal line claim by analysing multiple data sources, assessing risk and identifying unusual patterns.One of its most significant developments has been an AI-powered claims risk engine that determines how individual claims should be processed, it notes. According to the insurer, this has enabled a substantial proportion of routine claims to be approved automatically, reducing turnaround times for those claims by 50%."AI delivers the greatest value when it solves practical business problems rather than simply showcasing new technology,” says David Diamond, enterprise AI team lead at King Price. “Our priority has been to make claims processing faster, fraud prevention more intelligent and decision-making more consistent across the organisation. Those improvements ultimately create a better experience for clients, while improving operational efficiency." The insurer has also rebuilt its optical character recognition capability to better process e-mails, forms and supporting documentation, reducing administrative workloads and expanding automation across the claims process.Fraud detection has become another major AI application, adds Diamond.“Specialised fraud detection models analyse large datasets to identify suspicious behaviour, while AI-powered voice identification technology helps detect identity misrepresentation. The insurer is also investigating deepfake image detection technologies, as digitally-generated fraud becomes more sophisticated,” explains Diamond.AI enables the insurer to balance speed with trust by accelerating straightforward claims, while strengthening controls that protect the insurance pool, Diamond adds.Naked says it uses AI to detect fraud by analysing large volumes of structured and unstructured data.“Our AI-driven claims system tracks large volumes of data variables from systems to learn more about patterns in fraudulent claims. This means that in addition to the answers provided to a given question (which is all a traditional insurer would have available), our system tracks interaction data to look for markers of fraudulent behaviour, which allows us to more successfully pinpoint fraud,” North comments.Naked has also launched what it describes as SA’s first native ChatGPT insurance application, allowing customers to obtain quotes, upload policy schedules and ask insurance-related questions using natural language.Discovery Life previously told ITWeb it uses AI primarily to strengthen fraud detection and improve life insurance claims management.It notes that fraud accounts for less than 0.5% of claims, but says AI enables investigators to identify unusual activity much earlier, helping protect the integrity of the risk pool."Discovery Life combines AI, machine learning and data analytics within our own systems to identify suspicious claims and strengthen fraud prevention," says Sylvia Steyn, head of life claims and service at Discovery Life.“These technologies also help us proactively identify claims that should be paid, while allowing lower-risk claims to be processed more quickly. “Human judgement remains central to investigations because protecting the risk pool and ensuring fair outcomes require both intelligent technology and experienced claims specialists.”The insurer adds that advanced analytics are used not only to detect fraud, but also to proactively identify claims that should be paid to customers, improving operational efficiency, while maintaining rigorous oversight of higher-risk cases.“Discovery Life’s combined AI and ML technologies pull data from multiple sources, including the Department of Home Affairs, fraud databases and industry trends, creating alerts that help assessors decide whether further investigation is needed,” Steyn continues.As AI capabilities continue to mature, insurers say they will deepen their use of the technology across underwriting, claims, customer engagement and risk management.