How Google Cloud AI Enables Prudential to Transform Claims

The transformation of Asia's insurance sector continues to accelerate as insurers seek technological solutions to handle increasing claims volumes from the region's growing middle class. Now, Prudential plc, the Asia-focused insurance and asset management group with operations across 23 markets, has established a strategic partnership with Google Cloud to automate medical claims processing.
At the heart of this transformation is Google's MedLM foundation model – a specialised AI system that represents a new approach to handling insurance documentation. The technology, which analyses diagnostic reports, prescriptions and invoices to extract structured data, marks the insurance sector's first significant deployment of large language models (LLMs) in core operations.
The shift towards AI-powered claims processing comes as insurers face mounting pressure to process rising claims volumes while maintaining accuracy and controlling costs. Traditional manual processing methods, which require claims assessors to review and extract information from medical documents, create bottlenecks that technology could eliminate.
For Prudential, proof-of-concept testing demonstrates the system doubles the automation rate of claim reviews while maintaining accuracy levels - a breakthrough that could reshape how insurers approach claims processing across the region.
Transforming the claims process
The system works by converting unstructured medical documentation into standardised data formats compatible with Prudential's claims processing systems. This addresses a key industry pain point where manual data entry creates processing bottlenecks and introduces error risks.
“Data and AI are enabling us to provide care beyond coverage for our customers,” says Arjan Toor, CEO of Health at Prudential plc. “Our strategic partnership with Google Cloud has given us a valuable first-mover advantage in adopting generative AI to improve the customer experience at an important moment of truth.”
The implementation begins with a 3-4 month validation phase across Singapore and Malaysia, where MedLM's outputs will be benchmarked against existing claims decisions. This controlled rollout maintains human oversight of critical decisions while identifying optimal deployment areas.
Healthcare innovation transforming insurance
MedLM represents a departure from typical insurtech AI deployments, as the model was originally developed for healthcare providers rather than insurers. According to the companies, the system’s medical domain expertise enables it to interpret complex clinical terminology and coding systems used in claims documentation.
- Model Type: Healthcare-specific large language model (LLM)
- Initial Markets: Singapore and Malaysia
- Performance: Doubles automation rate of claim reviews
- Document Types: Processes diagnostic reports, prescriptions, invoices
For Google Cloud, the partnership demonstrates its healthcare AI capabilities can transfer to insurance use cases. “This collaboration exemplifies how our strategic partnership with Prudential can empower its workforce to drive confident decision-making,” says Karan Bajwa, Vice President of Google Cloud in Asia Pacific.
Insurance sector faces digitisation pressure
The implementation comes as Asia's insurance sector faces increasing pressure to digitise operations. Rising healthcare costs, growing middle-class populations, and changing consumer expectations are driving demand for efficient health insurance products across the region.
Singapore and Malaysia serve as testing grounds for the technology due to their developed healthcare systems and regulatory frameworks supportive of insurtech innovation. Success in these markets could pave the way for wider deployment across Prudential's Asian operations.
The system's ability to double automation rates in claims processing represents a step change in operational efficiency. Traditional claims processing requires claims assessors to manually review and extract information from medical documents, a time-consuming process prone to human error.
MedLM's natural language processing capabilities enable it to understand medical terminology and context, reducing the manual workload on claims assessors and potentially shortening claims processing times for customers.
The future role of Gen AI in insurance
Prudential's implementation of MedLM points to broader applications of generative AI in insurance operations. The technology could extend beyond claims processing to areas such as underwriting, customer service, and fraud detection.
"This is just the first step in using generative AI to deliver seamless, digitally enabled healthcare experiences at every step of our customers' health journey; from the point of diagnosis, through treatment, recovery and prevention," says Toor.
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