Putting the AI in Claims to aim cutting handling time with 66%.

ARAG, a leader in accessible legal services, sought to reinvigorate their innovation approach, aiming to address both high-level strategic priorities and operational efficiency. ‍Our team led a comprehensive redesign of ARAG’s innovation efforts, starting with a strategic vision and leading to the successful deployment of AI within their claims processing workflow—a model for future innovation.

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Key Challenge

Tapping into both legal and insurance systems opens up a wide range of innovation directions. But with so many possibilities, it can be challenging to bring the necessary focus to ensure innovation leads to impact in the short and long term.

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Past innovation efforts at ARAG typically struggled to gain momentum beyond the proof-of-concept stage. Recognizing the need for a more tactful approach, ARAG sought a new strategy that could bring clarity and scalability to their (digital) innovation efforts. And the mindset to put the strategy into practice.

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Approach

Our experts pointed ARAG’s innovation efforts towards high-impact, strategic projects that addressed boardroom-level goals and operational pain points. As a resulting flagship project, we initiated the ‘AI in Claims’ initiative with the bold goal to reduce the claims process to just a third of the handling time by leveraging digital AI assistants.

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Many legal claim handling processes are highly reliant on manual work, leading to long processing times and operational bottlenecks. Making this process more efficient can not only bring down costs, but also boosts the happiness of employees who can focus on the more fun parts of their jobs. To get the internal buy-in, we led cross-functional workshops with the legal teams, co-created a concept workflow, and brought in the ideal partners to help execute the project.

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We helped structure the MVP project that focused on the labor law domain to build knowledge, momentum and set the stage for broader adoption. The initial strong results has secured the internal funding and commitment to expand the initiative across the organization.

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“It is great to have an impact as a lawyer on a groundbreaking innovation project that ultimately frees up more time for the fun part of our work: the legal content and customer contact."

• - Avi Jhanjhan, Legal Expert Labor Law, ARAG

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Outcomes

ARAG’s revamped innovation approach has brought measurable improvements to their claims processing, and enhanced AI literacy early on across teams. The PoC's success, which demonstrated the potential handling time reduction, has already spurred scaling efforts. With sustained team engagement and buy-in, ARAG is well-positioned for ongoing, strategy-driven innovation.

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