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Lincoln National (LNC) Improves Claim Experience With AI Tech

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Lincoln National Corporation (LNC - Free Report) recently expanded its partnership with EvolutionIQ to enhance its offerings in the disability insurance space. LNC had earlier partnered with EvolutionIQ in 2023 to enhance the long-term disability business. Improved satisfaction at an average of 91% led LNC to extend this partnership presently to enhance customer experience in short-term disability.

This move bodes well for LNC as using human-in-the-loop AI technology in their disability claims processes indicates a strategic shift to streamline operations and improve outcomes. Improved disability claims management analytics and claim guidance are expected to assist claimants. The new technology will use AI to study claims data and provide insights. Claims professionals are provided with timely insights, helping them better assist claimants.

This move highlights LNC’s efforts to stay up-to-date and meet customer needs with innovative features. The company believes in investing in capabilities to enhance claim outcomes, and this partnership is part of that strategy. With this technology, claim specialists will be able to focus on the correct claims at the proper time, making the determination process more efficient. This is expected to enhance retention and attract new customers.

More such innovations in the Group Protection business will enhance its revenues in the future. Growing premiums led to a 2.7% year-over-year improvement in the first quarter of 2024. Growth across product and market segments led to a 12.5% sales improvement in the first quarter. Timely support and intervention for claimants will reduce the duration and severity of claims, leading to reduced claim costs and improved profitability.

Shares of Lincoln National have gained 40.3% in the past year compared with the industry’s 25.4% growth. LNC currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks from the insurance space are Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) , RLI Corp. (RLI - Free Report) and Reinsurance Group of America, Inc. (RGA - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Skyward Specialty outpaced estimates in each of the last four quarters, the average surprise being 30.5%. The Zacks Consensus Estimate for SKWD’s 2024 earnings suggests an improvement of 31.8%, while the consensus mark for revenues indicates growth of 25.8% from the corresponding year-ago reported figures.

RLI’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 132.4%. The Zacks Consensus Estimate for RLI’s 2024 earnings indicates an 18.2% rise, while the consensus mark for revenues suggests 15.3% growth from the respective prior-year reported figures.

The bottom line of Reinsurance Group of America outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.5%. The Zacks Consensus Estimate for RGA’s 2024 earnings suggests a 3% improvement, while the consensus mark for revenues indicates 6.1% growth from the respective prior-year reported figures.

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