DOMCURA settles insurance claims autonomously in about 10 minutes with Microsoft Foundry

German insurer DOMCURA relied on manual processes to review claims, creating a backlog that hiring alone could not resolve. DOMCURA wanted to use AI to reimagine claims processing.

DOMCURA developed a modular AI platform, KIM, that uses Microsoft Foundry and Microsoft Azure to automate processing for claims.

Qualified claims can be paid out to the insured in about 10 minutes, reducing operational costs by 50% and boosting customer satisfaction rates. DOMCURA offers KIM to the broader insurance industry.

“Traditional process optimization alone was no longer sufficient. We aimed to achieve a fundamental technological leap forward.”

Lars Malinowsky, Director of IT, DOMCURA

DOMCURA is embracing AI automation for insurance claims processing, reducing manual paperwork and catapulting its customer satisfaction rates to some of the highest among insurers in Germany. The company’s AI solution, KIM, powered by Microsoft Foundry and Microsoft Azure, resolves insurance claims in about 10 minutes. KIM revolutionized claims processing and created new business opportunities for DOMCURA.

Harnessing automation to streamline claims processing

German insurance provider DOMCURA offers tailored insurance coverage with first-class service. Customers sought out the company for its specialty in residential insurance and underwriting, but its backlog of claims was growing. “We were facing immense pressure in claims processing—a challenge shared by the entire insurance industry,” says Lars Malinowsky, Director of IT at DOMCURA.

DOMCURA relied on a series of manual processes to document, review, and determine claim eligibility but realized that it could not resolve the processing backlog just by hiring more staff. “Traditional process optimization alone was no longer sufficient,” says Malinowsky. “We aimed to achieve a fundamental technological leap forward.”

As part of a highly regulated industry, DOMCURA needed a technology solution that could meet regulatory requirements while also providing scalability to handle sudden surges in claims volume. In 2024, a hackathon with Microsoft laid the foundation for KIM, DOMCURA’s modular AI agent platform.

Approving claims in about 10 minutes

DOMCURA embraced an ambitious plan to fully automate processing for claims. The company turned to Microsoft Foundry to build KIM, working closely with Microsoft and Microsoft partner aithoria to conceptualize and develop the end-to-end claims processing AI agent.

KIM scans, analyzes, and reviews all paperwork associated with insurance claims using Azure products, including Azure Document Intelligence. KIM’s chatbot feature is powered by the large language models in Azure OpenAI in Foundry Models and assists customers with filing claims. “KIM operates around the clock, 365 days a year,” says Malinowsky. “It scales automatically within Azure to handle peak loads without compromising service levels.”

“KIM operates around the clock, 365 days a year. It scales automatically within Azure to handle peak loads without compromising service levels.”

Lars Malinowsky, Director of IT, DOMCURA

Using KIM, DOMCURA can now pay out claims in approximately 10 minutes, freeing employees to assist with complex claims. The company reduced operational costs by 50% and now has some of the highest customer satisfaction rates among insurers in Germany.

Embracing new business opportunities and broader workplace modernization

DOMCURA’s bold move revolutionized claims processing and inspired it to evolve into a software solutions provider with support from Microsoft partner Public Cloud Group (PCG). “We are now sharing the KIM platform with the wider market,” says Malinowsky. “It is truly disruptive; it completely replaces traditional workflow systems.”

KIM’s success highlights the value of workplace transformation and has supported a broader initiative at its parent company, German financial services firm MLP, which faced significant limitations with its legacy virtual desktop infrastructure.

Reimagining the insurance industry for the AI era

DOMCURA and MLP illustrate a powerful end-to-end transformation: from AI innovation in core insurance processes to an AI-ready workforce at scale. “KIM embodies a new quality of collaboration between humans and AI that is aimed at making insurance processes faster, more efficient, and more customer-centric,” says Malinowsky.

“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.”

Lars Malinowsky, Director of IT, DOMCURA

DOMCURA is expanding KIM to other insurance-related use cases where document-driven processes, knowledge work, and high service demands converge. “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,” says Malinowsky.

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