Insurance and Automation: How Can RPA Help Your Firm?
Although insurance still lags other financial sectors in tech adoption, forward-thinking insurers are embracing robotic process automation.
- Insurance still lags other sectors in RPA adoption
- Many insurers are embracing RPA technology and accelerating their digital transformation
- RPA offers many benefits for insurers, from improving customer and employee satisfaction to capturing more accurate data and reducing operational costs
- RPA easily integrates with other insurance technology platforms
While insurance as an industry has slipped behind other businesses in the race to digital transformation, business automation has emerged as a game-changing technology that’s helping to close the gap. Robotic process automation (RPA), in particular, helps insurers streamline their business operations through automation. The automation can be full or partial, depending on a business’s needs and budget.
RPA is an automation solution that makes repetitive decisions and executes repetitive tasks that don’t necessarily require human participation. It’s ideal for handling office functions as a sort of virtual assistant so your full-time employees can spend more time and focus on tasks that require human attention.
So, what specific jobs can RPA streamline and enhance? In this article, we’ll walk you through the benefits and use cases of robotic process automation.
What is RPA?
It’s critical to define this solution before diving into its potential automation in your business. In a nutshell, robotic process automation is:
A technology that mimics how people interact with software to execute high-volume, repetitive jobs. The tech creates software or bots that log into apps, infill data, and accomplish tasks.
This tech also blends with other technologies like AI. This combination enables it to capture broader data contexts by reading texts, extracting names, and capturing more images.
Core RPA benefits for insurance
So, what is in RPA for insurers who embrace cutting-edge tech? Briefly, your firm can streamline its daily processes and boost employee morale. Also, you can deploy RPA bots in your different systems and improve your staff’s efficiency and accuracy.
Leslie Willcocks, professor of technology, work, and globalization at the London School of Economics’ Department of Management, studied cases of RPA in action and found that firms that embrace this tech register a 200% increase in ROI in the first year. Here are the key benefits your business can see by adopting RPA in its daily processes.
- Satisfied customers: First, you satisfy your business’s most important people —customers. This solution speeds up and streamlines how you serve your true bosses to their highest satisfaction. Customers can benefit from onboarding to the end of their customer lifecycle.
- Fulfilled employees: You also satisfy your second-most important business allies — employees. Without a happy workforce, your business will most likely suffer. Without them, you won’t serve your customers effectively, so a highly motivated staff means increased productivity and higher profitability.
- Widened selling opportunities: You will broaden your selling opportunities because RPA-powered bots deliver customized product recommendations and guide your customers to coverages that better fit their needs. You can also use it to sharpen product innovation to meet on-demand customer needs.
- Increase data accuracy: Your business’s data is a priceless resource. Its accuracy is essential for succeeding in your business. The good news is that RPA enhances data accuracy by removing human error from data capture and replication throughout your systems. Reliable data also helps ensure regulatory compliance and saves you from unnecessary legal battles.
- Save operating costs: What insurer doesn’t want to reduce operating costs and increase profits? Launching RPA lets you do just that, slashing operating costs without compromising process efficiency and quality.
10 Jobs Robotic Process Automation Can Help Insurers Automate
- Customer service: Your customers are your real employers. Serving them well keeps you in business. RPA helps serve your customers better by automating tasks like e-signature verification, data verification, and document submission.
- Accounting and finance: Managing your limited financial resources is essential for business survival and growth. Go ahead and automate accounting tasks in budgeting, operations accounting, and transactional reporting.
- HR management: You can also automate HR activities like staff onboarding and offboarding. This tool also updates staff data as it changes without HR personnel needing to intervene.
- Claims registration and processing: Claims registration and processing are critical pillars for any insurance company. You can deploy insurance RPA to verify claims and detect any hidden fraud in them. Also, use it to eliminate error-prone manual tracking.
- Underwriting: Underwriting is a data-rich and risk-prone process requiring precision. Automate this process using RPA to formulate safer and more accurate risk analysis processes. The tool can also automate report creation and offer valuable recommendations.
- Policy cancellation: Insurance RPA also streamlines your policy cancelation processes. It saves your policyholders time in tedious interaction processes with emails, CRMs, Excel, PFDs, and policy admin systems. Why? Because the tech does all these things simultaneously, saving your company time they would have wasted.
- Data capturing: Data capturing is an essential insurance routine. However, doing it manually is hectic and error-prone. So, deploy this automation solution to do the job faster, better, and more efficiently.
- Regulatory compliance: Your business doesn’t need to get into trouble with Uncle Sam over regulatory compliance. RPA automates this routine task by swiftly validating customer data, generating regulatory reports, and sending out closure processing notifications.
- Sales and distribution: Last but still important, insurance RPA automates this essential activity. Remember, you won’t have any business without selling. RPA can automatically create sales scorecards to notify your agents, conduct compliance, and make credit and legal checks.
- Bridging the gap to legacy systems: Keeping legacy systems up-to-date and working with the rest of your IT stack often takes manual processes like copying and pasting data from one system to another. RPA can automate these processes, updating legacy systems with minimum human intervention. This gives you more time and resources to bring those systems up to date.
Start Your Automation Journey Today
That’s how RPA is changing the game for insurance companies across the industry. If you’re ready to start your automation journey, contact us for more information on how to implement RPA in your business.