Robotic Process Automation (RPA) has shown great promise in a wide range of sectors including the insurance industry.
The insurance industry is plagued by an oversupply of menial administrative tasks, which reduces customer satisfaction and wastes a great deal of time.
Using RPA in the insurance industry, businesses opened a wide range of possibilities to cut short their time and effort spent on secondary activities significantly.
As a result, it boosts productivity and improves customer service.
Today RPA is used extensively in the insurance business to deal with aging systems and automate duplicate procedures, as well acquire external data.
Why is Automation Necessary in the Insurance Sector?
Using RPA, insurance firms have been able to improve operational efficiency and reduce administrative burdens by automating transactional and administrative procedures.
A McKinsey study found that RPA for insurance may reduce the data processing time by 34%.
A few years ago, insurance firms have been using RPA mostly on non-complex operations, such as claims processing and form registrations.
But today, RPA in the insurance industry is revolutionizing the end-to-end process including data extraction, error tracking, flagging, automatic routing of claims, and accurate process/business analytics which saves 30-50% of the time and effort of insurance companies.
Top 5 Use Cases of RPA in the Insurance Sector
The following are some of the insurance industry’s greatest RPA use cases:
1. Registration and Processing of Claims
As a result of the sheer volume of information needed to process claims, vast volumes of data are generated during the process.
Due to their inability to adapt, current claim systems are incapable of handling the volume of information required to process a claim. Due to a lack of efficiency and flexibility, the customer experience has been negatively impacted.
A growing number of companies are using intelligent automation in the claims management process in order to save money.
For instance, claims data processing from numerous sources can be integrated using RPA in the insurance sector.
There are many ways businesses are using technology to speed up and improve customer service in the insurance sector by automating tasks like data extraction, sophisticated error tracking, claims verification, and the integration of claim-relevant data sources.
2. Underwriting
Underwriting is another area of insurance that lends itself well to automation. It involves obtaining and analyzing data from a range of sources, such as:
Health Risks – Premiums will rise for applicants who smoke because of the higher mortality charges they incur.
Creditworthiness – Third-party firms such as Experian and TransUnion CIBIL Limited establish the applicant’s credit rating.
Duplicate Policies – Does the applicant already have an existing policy? Robotic Process Automation (RPA) streamlines the underwriting process by automating the collection of data from a variety of external and internal sources.
Automating the basis of the process may populate numerous fields in internal systems with relevant data, provide a report or make suggestions while evaluating run loss.
3. Regulatory Compliance
Regulatory scrutiny of the insurance business has never been higher than it is now.
The insurance sector adheres to strict guidelines when it comes to recording and generating audit trails.
The risk of regulatory infringement in the insurance business has increased due to the many complicated and error-prone procedures.
Automated processes are essential to ensuring regulatory compliance since they do not necessitate the utilization of large numbers of employees to carry out tasks.
It is possible that RPA might be used in the insurance business to automate tasks such as verifying existing client information or creating regulatory reports.
4. Analytics and the Business Processes
Insurance companies can only improve and better serve their clients if they measure what they are doing.
With so many operational and paper-intensive operations, it is difficult to track and analyze operational efficiency or identify potential areas of improvement.
There is no need to manually track software robot tasks when automation is in place.
RPA for insurance may be used to track the number of transactions and exceptions handled.
As a result of the audit trail offered by RPA, regulatory compliance is improved and process efficiency is increased.
Claims processing speeds and customer care response times improve as a consequence, and applications for consumers are made simpler.
5. Corporate Offices
Corporate offices can gain a lot of benefits from employing RPA.
To, illustrate, ack-office staff can be shifted to front-office jobs, where they can focus on complex client requests and drive growth, liberated from dull and routine operations.
Here are a few more ways that RPA may make insurance operations more efficient.
Accounting and Finance – An RPA system may conduct clicks, keystrokes, button presses, template auto-fills, copy-pasting of information, field entry, and more to reduce transactional expenses and policy-cost footprints in daily bank reconciliations.
Distribution and Retailing – When it comes to sales and distribution of insurance policies, RPA may be an invaluable tool. Among the operations that may be automated are the creation of sales scorecards, the transmission of alerts to agents, and the execution of compliance, regulatory, and credit assessments.
Cancellation of a Policy – We can use RPA to automate the cancellation of policies, which would save us time and ensure that no mistakes are made. In order to avoid any misinterpretation, it strictly adheres to the cancellation rules and procedures.
Major Advantages of Insurance Firms adopting RPA
With adopting automation, your insurance firm may reap the following benefits:
RPA enables faster claim processing.
With RPA, insurance companies increase compliance, claim management, and general efficiency.
RPA technology increases data accuracy with high-level OCR technology.
RPA streamlines onboarding for new businesses and customers.
Final Thoughts
Competition in the insurance sector is increasing, and customers’ expectations are evolving faster than ever.
Using RPA to automate regular, rules-based transactions allows insurers to repurpose their resources and people for higher-level and more strategic work, which is critical to the insurance industry’s back-office process efficiency.
Using RPA for insurance, insurers may boost revenues, improve compliance, preserve long-term company development, and deliver outstanding customer service while reducing expenditures and reducing customer dropout rates.
But, are you struggling with taking the first step towards RPA?
Worry not, we at Perfomatix got the solution with ample RPA experts and solution architects to solve your business problem.