We live in a world where the future is becoming less and less predictable every day. If insurers want to meet tomorrow’s needs, they will need to transform and become more agile in day-to-day business. According to experts, changing customer behavior, new technologies and business models are going to change the insurance industry in the next 5-10 years and it is already happening.
In order to stay ahead, more and more insurance companies are implementing automation as a way of reducing time-consuming processes in back-offices, which are high-volume and repetitive.
Today, in the form of Robotic Process Automation (RPA), we have robots do “simple” and “boring” tasks. Without human help, RPA can quickly and accurately automate processes and customer interaction that would normally require a high level of human involvement, freeing the employee to perform more knowledge work.
RPA implementation not only reduces labor costs and brings higher ROI, but also increases efficiency, removes the possibility of human error and reduces the time of data collection and improves their quality.
According to Gartner, Robotic Process Automation (RPA) is the fastest-growing segment in the worldwide enterprise software market. By the end of 2020, Gartner predicts that RPA services will be valued at £5.98 billion.
The ideal candidates for RPA:
Most insurance companies rely on old legacy systems that not communicate well with each other. Thus, a worker steps in to provide a “bridge” between these systems, which leads to spending hours and days on getting and transcribing data: opening e-mails, copy-pasting between systems and so forth, which decreases time used for more knowledgeable work and decision-making.
Here is where RPA comes to the rescue.
The list of tasks that RPA can perform is very long and I am listing a few most common examples here, for more you can visit our landing page here:
There are several use-cases specific for the insurance industry, where the implementation of RPA can lead to better results and here are some of them:
1. Claims Processing – Typically, claims processing takes several days since agents need to collect and check data (medical reports, photos of damage, police reports, etc.). It can take even more time due to agents’ errors, such as typing in wrong financial data or customer details. Implementing RPA, the workflow of claims processing can be automated from receiving claims until claim settlement eliminating the possibility of human error. Automated claims processing can reduce the amount of manual work by 80% and cut time for the claim process by 50%. This will also lead to better customer experience since back-office tasks are performed faster, with fewer errors and delays.
2. Regulatory Compliance - Insurance companies deal with strict regulations and audit trails. Automation in insurance helps companies improve the accuracy of data which allows companies to monitor regulatory compliance data in real-time through internal reviews and can be prepared in case of external audit. Basically, with RPA you can automate all your internal and external reports.
3. Underwriting – Another use case of automation in insurance is underwriting. RPA can help in gathering and analyzing information from different sources such as health risk, financial limits, credit-score, duplicate policies, etc. All mentioned reduces the risk of fraud.
4. Business and process analytics – Using RPA, insurance companies are able to improve their data collection and analytics, which gives the ability to employees and decision-makers to track and record all actions undertaken. This means less workload on employees, which allows them to focus more on customers and their needs.
In this RPA use-case example, agent XY processes insurance claims through the company’s various systems and applications. Each claim takes a certain amount of time and the agent has a queue of pending claims, which is the reason a claim can take few days to be processed and it takes a long time for policyholders to receive money.
And the best part is, if you are using a robot for claims processing 2 hours, you have 22 hours left for other processes to automate because a robot is available 24/7.
The situation with COVID-19 showed us all weaknesses and flaws of the global economy. The companies, small and medium-sized enterprises that are late with digital transformation suffer great losses and some don’t even exist anymore. While the global economy preparing for big changes, RPA is taking the center stage.