How Robotic Process Automation (RPA) is Transforming the Insurance Sector
Almost every sector of the economy has been disrupted by digital transformation. The way we work, communicate, and even socialize has changed dramatically in the last decade. Businesses have had to change the way they operate to stay competitive.
- Retail: eCommerce has changed the landscape of retail, with many brick-and-mortar stores struggling to keep up.
- Media and Entertainment: The rise of streaming services like Netflix and Hulu has forced traditional media companies to change the way they operate.
- Healthcare: The healthcare industry is undergoing a digital transformation with patients increasingly using digital tools to manage their health.
- Manufacturing: The manufacturing industry is being transformed by the internet as factories are equipped with connected devices that can communicate with each other.
One of the most transformative changes taking place across industries is the rise of robotic process automation (RPA). RPA is a form of artificial intelligence that enables businesses to automate repetitive tasks. This can include anything from data entry to customer service.
RPA is particularly well-suited for the insurance sector. The insurance industry is highly regulated, and policies can be complex. This complexity can make it difficult for human employees to keep up with all the changes.
But before we get into that, let’s discuss the insurance sector as a whole.
The Insurance Sector 101
The insurance sector is one of the oldest industries in the world. It dates back to the early days of human civilization when people first started to pool their resources to protect against risk.
Today, the insurance industry is a multi-trillion-dollar industry that provides protection against a wide variety of risks. These include:
- Property damage: Homeowners insurance protects against the loss of property due to fire, theft, or other disasters.
- Liability: This type of insurance protects against lawsuits that may arise from accidents or injuries.
- Health: Health insurance covers the cost of medical care.
- Life: Life insurance provides financial protection in the event of death.
The insurance sector has been relatively slow to change. This is due in part to the complex nature of the products and the regulations that govern the industry. However, this is starting to change as the industry undergoes a digital transformation.
One of the most important aspects of the insurance sector is the claims process. This is the process by which an insurance company pays out benefits to policyholders.
The claims process can be complex and time-consuming. It often involves a lot of paperwork and can be confusing for customers. This is where RPA can be particularly helpful.
There are four steps in the insurance claims process:
- 1 Notification of loss
- 2 Investigation of the loss
- 3 Determination of coverage
- 4 The payment of a claim
Notification of loss is when the policyholder notifies the insurer of a potential claim. This can be done by phone, online, or in person.
Investigation of loss is when the insurer looks into the claim to determine if it is covered by the policy. This can involve sending an adjuster to inspect the property or reviewing medical records.
Determination of coverage is when the insurer decides whether or not the claim is covered by the policy. If it is determined that the claim is not covered, the policyholder will not receive any benefits.
Payment of a claim is when the insurer pays out the benefits to the policyholder. This can be done in a lump sum or in installments.
RPA can be used to automate the notification of loss, investigation of the loss, and determination of coverage. This can help to speed up the claims process and make it easier for customers. With RPA, the insurer can receive and investigate claims quickly and efficiently.
RPA can help to speed up the claims process. It can take as little as 24 hours for an RPA system to investigate a claim. This is compared to the days or weeks it can take for a human adjuster.
The Benefits of RPA:
RPA can offer several benefits to any business sector. These include:
- Improving customer satisfaction: RPA can help to speed up the claims process and make it more efficient. This can lead to improved customer satisfaction.
- Reducing costs: RPA can help to reduce the cost of the claims process. It can automate tasks that are currently done manually.
- Improving compliance: RPA can help to improve compliance with regulations. It can help to ensure that all the necessary information is collected and stored correctly.
- Increasing efficiency: RPA can help to increase the efficiency of the claims process by automating tasks that are currently done manually.
As you can see, RPA can offer many benefits to every sector of the economy, including the insurance sector. RPA is transforming the insurance sector and making it more efficient. In the future, RPA will become even more commonplace in the industry as it continues to evolve.
How Can RPA Help?
We have talked about how RPA in general can help many different business sectors, but how can RPA help the insurance sector specifically?
RPA can help insurance companies by automating tasks such as:
- Policy Management:
RPA can help to automate the process of policy management. This includes tasks such as creating and managing policies, handling customer inquiries, and processing claims.
Underwriting is the process of assessing risk and deciding whether or not to provide insurance. RPA can help to automate this process by collecting data and analyzing it quickly. For example, RPA can help to gather data about a customer’s driving history and use this to assess their risk.
- Claims Processing:
RPA can help to automate the claims process. This includes tasks such as notification of loss, investigation of the loss, and determination of coverage. RPA can help to speed up the claims process and make it more efficient.
- Fraud Detection:
RPA can help to detect fraud. It can quickly gather data and look for patterns that may indicate fraud. For example, RPA can help to identify claims that have been filed in multiple locations or with different names.
- Risk Assessment:
RPA can help to assess risk. It can quickly gather data and analyze it. RPA can help to identify risks that may not be apparent. For example, RPA can help to identify a customer who has a high risk of filing a claim.
Last, but not least, RPA can help to automate the billing process. This includes tasks such as creating invoices and issuing payments. RPA can help to speed up the billing process and make it more efficient.
These are just some of the ways that RPA can help the insurance sector. As you can see, RPA has the potential to transform the insurance sector by automating many tasks. This can lead to improved customer satisfaction, reduced costs, increased efficiency, and improved compliance.
Transform Your Business Today
The potential benefits that RPA offers are great for many business types, but the insurance sector in particular can reap a lot of rewards. Automating tasks such as policy management, underwriting, claims processing, fraud detection, risk assessment, and billing can lead to happier customers thanks to improved satisfaction rates. There’s also the chance to reduce running costs and upping efficiency and compliance levels.
RPA is the future of business automation. At RD Global, we are at the forefront of RPA development. We can help you to implement RPA and transform your business today. RD Global provides insurance companies with modern digital solutions to enhance customer service and simplify intricate processes.
Right now, there is a perfect opportunity for your insurance company to gain a competitive advantage by implementing RPA. Insurance companies that don’t take advantage of RPA will be at a disadvantage with obstacles like:
- Slower processes
- More errors
- Lower customer satisfaction
- Increased costs
If you run a traditional insurance company and would like to embrace digital transformation, RD Global is the perfect partner for you. RPA and Intelligent Automation are just one of the many digital solutions that we offer. We also prioritize the digital experience and data management & analytics.
When you partner with RD Global, you can be sure that you are getting the best possible service. We have a team of experienced professionals who are dedicated to helping our clients succeed. We will work with you to understand your specific needs and goals before recommending the best solution for you.