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Improving insurance claim processing through AI

Agula Insurance used Artificial Intelligence (AI) to reduce their overall insurance claim process from 4 days to 1 hour. This allows clients to have a seamless end-to-end experience.



Agula Insurance is an insurtech company based in Mongolia. Agula Insurance distinguishes itself in the market by its commitment to leverage advanced technologies and data analytics to streamline its process and enhance the overall customer experience.

Presently, the insurance sector in Mongolia is experiencing rapid growth and increased prominence. Over the past 10 years, the premiums have surged by more than eightfold and the vehicle insurance market size has reached $3 million in 2022. More recently third-party liability coverage has been mandated, compelling previously uninsured vehicle owners to align with the new regulations. Consequently, companies need to swiftly adapt to efficiently respond to the rapidly growing demand. As Agula Insurance's standard reimbursement process requires an extended process demanding significant resource allocation, they turned to AI to increase overall operational efficiency and customer experience.



To differentiate themselves in the market, develop top-tier services and attract new customers spanning both the uninsured and insured segments, Agula Insurance collaborated with Deloitte Luxembourg to implement an AI-driven car damage recognition solution.

The Agula Insurance standard reimbursement process included manual processes, such as the creation of tailored cost estimates and the preparation of insurance documents that can be time consuming. Therefore, clients might find themselves awaiting reimbursement for up to 4 business days.

The car damage recognition solution is an AI-driven solution built to fulfill Agula Insurance's automation needs. It automatically detects vehicle damage and estimates the repair costs based on a picture submitted by the client. To build a comprehensive damage assessment the solution necessitates only 4 pictures of the vehicle, captured from distinct angles (from the front, rear, left and right). The subsequent cost estimation is then calculated based on the damage assessment output and a Mongolian-specific repair cost database (including variables, like material and labor expenses, as well as repair timeliness). The resulting insights are then documented for the insurance company to settle the reimbursement.

During the implementation of their car damage solutions, the team also underwent various stages of model training and customization for the Mongolian market, developed an exhaustive cost estimation framework and integrated the solution into the company’s operational workflow.



Empowered by AI capabilities, the car damage system can perform damage recognition, associated cost evaluation and delivery of compensation documentation within 2 to 5 minutes. As a result, the overall reimbursement process, previously requiring 4 business days, has been reduced to just less than 2 hours.

In short, Agula Insurance plans to extend its reach to encompass up to 40,000 new clients within the first year of launching their car damage solution. Additionally, they foresee continued advancements in AI technologies to improve their data analysis strategies and facilitate decision-making.

Through its collaboration with Deloitte Luxembourg, Agula Insurance strategically positions itself ahead of less digitalized insurance companies in Mongolia. By implementing diverse AI and data-driven solutions, the company is effectively optimizing client care and service delivery with unmatched efficiency.

"Imagine a world, where Insurance is not just a safety net but a positive impact. Our ZURAGU system is not an evolution, but a revolution in the insurance industry - and it’s ready to reshape the society itself"

Dolgor Daadankhuu - CEO of Agula Insurance LLC

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