By Alex Smith |
German insurer Domcura has built an AI-based claims processing platform, Kim, using Microsoft Foundry and Microsoft Azure, cutting the time to pay out qualified claims to about 10 minutes and reducing operational costs by 50 per cent.
Domcura, which specialises in residential insurance and underwriting, had relied on manual processes to document, review and determine claim eligibility. As claims volumes grew, the resulting backlog could not be resolved just by growing its workforce.
“We were facing immense pressure in claims processing – a challenge shared by the entire insurance industry,” said Lars Malinowsky, director of IT at Domcura. “Traditional process optimisation alone was no longer sufficient. We aimed to achieve a fundamental technological leap forward.”
Operating in a heavily regulated sector, Domcura needed a system that could meet compliance requirements while scaling to handle sudden surges in claims volume. The foundation for Kim, Domcura’s modular AI agent platform, was laid at a 2024 hackathon with Microsoft. The company then worked with Microsoft and Microsoft partner Aithoria to build the platform on Microsoft Foundry.
Kim uses Azure Document Intelligence to scan, analyse and review claims-related paperwork, while a chatbot feature built on large language models in Azure OpenAI in Foundry Models helps customers file claims. “Kim operates around the clock, 365 days a year,” said Malinowsky. “It scales automatically within Azure to handle peak loads without compromising service levels.”
Domcura said the system now allows qualified claims to be paid out in approximately 10 minutes, freeing staff to focus on more complex cases. The company reported a 50 per cent reduction in operational costs and said its customer satisfaction rates are now among the highest of insurers in Germany.
Following KIM’s deployment, Domcura began offering the platform to other insurers, working with Microsoft partner Public Cloud Group to expand into a software solutions provider. “We are now sharing the Kim platform with the wider market,” said Malinowsky. “It is truly disruptive; it completely replaces traditional workflow systems.”
Domcura said it plans to extend Kim to other insurance use cases involving document-heavy processes and high service demands. “Our collaboration with Microsoft demonstrates that insurance industry expertise can be combined with modern cloud and AI technology to create a solution that delivers tangible value,” said Malinowsky.