Artificial intelligence-based car insurance services are scheduled to be introduced next year so that post-accident handling can be expedited.
The South Korean government is planning to set up a working group this month so that the services can be promoted based on deregulation, infrastructure establishment and better consumer protection, reported Business Korea.
The purpose of the services is to automatically calculate repair costs using AI to determine the degree of damage and the necessary repair parts based on pictures of a damaged vehicle.
This system is a combination of AI and the Automobile repair cost On-line Service (AOS) currently in use by insurers and auto repair shops.
Under the process, pictures are transmitted to the AOS server of the Korea Insurance Development Institute (KIDI). The AOS analyses the pictures and automatically calculates repair costs, and then the data are transmitted to an insurer, an auto repair shop and the owner of the vehicle.
The owner can immediately receive the repair cost data. On the insurer’s part, more accurate claims adjustment is made possible and work can be expedited as no on-site process is required.
The AOS is capable of identifying duplicate pictures, and thus duplicated insurance claims can be prevented. Quicker repair cost claims are possible for repair shops, too.
“The AOS analysed one million pictures of damaged cover panels from April 2019 to April this year to record a matching rate of 70% to 80% for those cases with a repair cost of less than KRW900,000 ($750),” KIDI explained, adding, “The AOS is equipped with algorithms applicable to 170 models of sedans, SUVs and so on and is capable of covering 90% of all vehicles.”