6 Ways Robotic Process Automation Can Spur Insurance Company Success

BY: Patty Nicholson
NOVEMBER 9, 2021

Move at the same speed as your customers with hyper-automation

Key Takeaways:

  • RPA utilizes Artificial Intelligence (AI) to streamline business processes and enable better customer service, and it’s gaining steam among executives in all industries
  • RPA uses AI-based software to emulate tasks that are repetitive and require no decision-making or strategy to implement
  • RPA improves the client experience by speeding up services and intelligence gathered through analytics
  • Process improvements mean cost savings over legacy systems, and payroll decreases as manual tasks become automated
  • RPA can help insurers in the areas of claims, underwriting, compliance, and business intelligence, among others

Efficiency is likely top-of-mind as you travel down the road toward your insurance company’s digital transformation. CEOs, CTOs, and CIOs looking for a way to improve both performance and effectiveness will find that Robotic Process Automation (RPA) is a key component.

RPA utilizes Artificial Intelligence (AI) to streamline business processes and enable better customer service, and it’s gaining steam among executives in all industries. RPA is being implemented by 78% of business leaders according to a recent survey by Deloitte, and another 16% plan to implement RPA within the next three years.

The intelligent automation offered via RPA brings many benefits to insurance companies, especially in Property & Casualty (P&C) insurance, because processes are highly standardized. RPA has a number of use cases in insurance to reduce time on repetitive tasks.

The capabilities of robotic process automation

RPA uses AI-based software to emulate tasks that are repetitive and require no decision-making or strategy to implement. These include operational, transactional, and administrative chores. RPA uses software robots to perform these end-to-end processes with little to no human interaction. These tools are flexible, scalable, and can be applied across many use cases in the insurance industry. They can also be implemented in just a few weeks.

Automating these processes saves time and allows staff to spend their time working on projects that are more cognitive, skill-based, and provide more value. Another potential savings area is payroll. It’s estimated that 25% of the insurance industry will be automated by 2025 and up to the same percentage of full-time positions may be replaced or merged.

Beyond these savings, human errors are reduced when using intelligent automation for operations and calculations, employee performance improves, claims processing is streamlined, and regulatory compliance can be all but guaranteed.

The client experience also improves with RPA combined with data analysis. Faster data processing offers detailed information about customers to personalize offers and experiences.

RPA use cases in insurance

RPA processes automate rule-based tasks, which makes it a natural fit for the insurance industry. Improved and streamlined processes allow for stronger growth. By taking mundane, repetitive tasks out of the hands of human staff, RPA lets companies put people where they provide the most value.

Here are six insurance activities that are perfect for hyper-automation:

1. Claims registration and processing for efficiencies and happy customers

Claims processing requires gathering a vast amount of information from many sources and creates huge quantities of data. The industry has reached the practical limits of current claims systems with manual processes. This not only slows service but negatively impacts the customer experience.

RPA integrates claims processing information from multiple sources, extracts data, tracks errors, verifies claims, and integrates claim-relevant information. This speeds the claims process up to create efficiencies and a better customer experience.

2. Improved underwriting

Underwriting is an arduous task that can be greatly improved with RPA. Manual processes require gathering information from disparate sources, scrambling data, analyzing it, and then determining risk. This process takes weeks.

With RPA, the data collection process is automated. This data can then be used within internal systems to produce reports or recommendations based on stated rules, automating the basis for underwriting decisions and product pricing.

3. Better regulatory compliance

Existing state and federal regulations continue to be refined and expanded, entering new areas such as insurtech supervision and risks due to climate change. Insurers should expect increased scrutiny, more enforcement, and elevated levels of accountability.

This makes it all the more important to make sure your processes are as error-free as possible. Automation improves regulatory compliance by replacing the large number of staff required to manually enforce compliance and eliminating human error from the equation.

RPA validates customer information, generates regulatory reports, sends account closure processing notifications, and can do even more once you’ve fully integrated it into your business.

4. Process and business intelligence for improved customer service

Measurement is the key to improving customer service. Paper-based processes make it hard to identify areas for improvement through measurement of operational efficiency.

Automation allows easy tracking of the tasks executed by software robots with no manual effort. RPA also provides an audit trail to help with regulatory compliance and inform process improvement.

Customer service levels are improved through streamlined applications and faster claims processing. The reduction in errors with RPA means analytics have accurate information to personalize the customer experience and find growth opportunities.

5. Administration and servicing policies

Policy administration includes quoting, rating, underwriting, distribution, and customer service encompassing all insurer functions. Legacy systems are not only expensive and require frequent maintenance, but they are also incapable of scaling fast enough to meet the demands of today’s customers. Because of that, legacy solutions stifle business growth.

RPA enables the key players within each process silo to execute needed operations easily without navigating across systems. It automates transactional and administrative activities that are part of accounting as well as settlements, risk capture, credit control, tax, and regulatory compliance. Back-office staff are then freed from routine tasks and can focus on complex customer demands and projects that generate growth.

6. Form registration and policy cancellation

Form registration is a redundant task in the insurance space. RPA can automate and assist in the form registration process to enable quicker completion with half the staff.

Policy cancellation involves work such as tallying the cancellation date, inception date, policy terms, etc. With RPA, these tasks can be completely automated and done in much less time.

A significant advantage of RPA is its scalability. Any number of software bots can be deployed as needed. Digital innovation within the insurance industry is imperative to move at the pace of today’s customers for growth and success. RPA’s many applications and advantages help you get there.

Learn how RPA brings real value

As data-driven organizations, it’s paramount that insurance companies find ways to process the vast amounts of data quickly and effectively they collect with ensured accuracy.

Intelligent automation enables this kind of accuracy while also offering a large reduction in duplicate effort, redundant manual processes, and technical process debt. The data you gain from RPA also supports better decision-making and higher employee and customer retention.

RD Global’s custom hyper-automation solutions leverage state-of-the-art technologies including enterprise-level robotic process automation, AI, and event-driven software without disturbing existing applications.​​ Schedule a discovery call to learn how RD Global can partner with you for success now and in the future

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Written by Patty Nicholson

"With an exceptional ability to execute and implement enterprise-wide, highly complex strategic initiatives building trust with teams and cross-functional partners, and over 20 years of demonstrated leadership skills, Patty Nicholson oversees all operations while maintaining a commitment to 5-star customer success. Most of her career has been working with insurance organizations on ways to automate manual processes to new digital platforms. "

NOVEMBER 9, 2021
RD Global Empowers Insurance Companies to optimize total digital experience, unify data, and harmonize processes by developing high impact technology solutions infused with a 5-star customer experience.