You’re absolutely right about the potential impact of technology on the claim processing industry, especially with advancements in automation. The core idea is that a significant portion of claims—about 85%, as mentioned—are straightforward and can be processed without human intervention. This opens the door for tech-based solutions, like AI and machine learning, to streamline the process.

Key Points of Automation in Claim Processing:

1. Plain Vanilla Claims: These are routine claims with no complexities, such as standard medical treatments or procedures. Automating these can save time and reduce operational costs for insurers and third-party administrators (TPAs).
2. Tech Startups in SE Asia:

• Smarter Health and DocDoc are good examples of startups working on tools to automate and simplify healthcare claim processing. Their platforms likely use AI algorithms to verify claims against policies, detect potential fraud, and assess risks.

3. Impact on India:

• In India, startups like i3systems are already exploring this space, using AI to process claims faster and more accurately. If this tech proves successful, it could indeed reduce the reliance on TPAs, which traditionally handle the bulk of claims processing.

4. Reduction in TPA Role: As automation advances, the role of TPAs may shift from handling routine claims to focusing on more complex cases or adding value in areas like customer service, fraud detection, and claim validation where human oversight is necessary.

Automation could revolutionize claim processing, not just speeding it up but also enhancing accuracy and lowering costs for both insurance companies and policyholders. If widely adopted, especially in markets like India, this tech could fundamentally reshape the industry.