How RPA For Claims Processing Impacts Insurance ROI 

BY: RAJESH NAMBIAR – FOUNDER, CEO
OCTOBER 21, 2022

The global robotic process automation (RPA) market has reached 17.5% growth year over year, and it’s not showing any signs of slowing down. In particular, the claims processing sector within the insurance industry has been increasingly turning to robotic process automation to improve ROI. Here’s a look at how RPA for claims processing impacts insurance ROI.

Robotic process automation, or RPA, is a form of artificial intelligence (AI) that automates high-volume, repeatable tasks usually performed by humans. RPA is a huge benefit for claims processing tasks, including data entry, documentation review, and eligibility verification.

One of the biggest impacts of RPA on insurance ROI is its ability to speed up the claims process. By automating repetitive and manual tasks, RPA can help insurance companies reduce the time it takes to process a claim.

In addition to speeding up the claims process, RPA can also improve accuracy and compliance. By automating data entry and documentation review, RPA can help to reduce errors and ensure that all information is accurately captured. This can help to improve customer satisfaction and loyalty, as well as reduce the risk of non-compliance.

Insurance ROI

ROI, or return on investment, is a key metric for any business. It essentially measures how much profit a company makes in relation to its overall costs. For insurance companies, ROI is especially important because of the high costs associated with the industry. To be profitable, insurance companies need to carefully manage their expenses and maximize their revenues.

ROI allows insurers to track and manage their finances in a more efficient way. In the past, calculating ROI was a time-consuming and manual process. However, with RPA, insurers can automate this process and get real-time insights into their financial performance. This not only saves time and money but also allows insurers to make more informed decisions about where to allocate their resources.

On the other hand, insurance ROI is affected by the high cost of RPA. While the upfront cost of RPA can be significant, it’s important to remember that it will ultimately save the company money in the long run. In addition, insurance companies need to consider the ROI of their customers.

Claims Processing and RPA

It’s no surprise that RPA is emerging as a new trend in the insurance industry. As the industry looks for ways to improve ROI, RPA is becoming an increasingly attractive option. There is minimal room for error because the company’s service standards and loyalty to its customers are on the line, and the expense of precise claims handling should not be underestimated. For this reason, robotic process automation is becoming more popular among businesses as a solution to these issues.

RPA can automate several different tasks in the claims process, including data entry, documentation review, and eligibility verification. This not only saves the company money but also frees up employees to focus on higher-value tasks. In addition, RPA can improve accuracy and compliance by automating data entry and documentation review.

Claim processing and RPA could go hand in hand with each other for insurance success because they can increase business outcomes, lower costs, and improve customer satisfaction. RPA has the potential to completely change the way insurance companies operate, and those that embrace it will be well-positioned to succeed in the future.

Benefits of RPA for Claims Processing

RPA offers improved services to processes, and these bring several benefits to claims processing.

RPA-based claims processing uses a technology that can quickly read and interpret data from multiple sources to generate an outcome. The software “bots” can work day and night, meaning that more claims can be processed in a shorter time frame without sacrificing accuracy.

Additionally, because RPA can quickly read and interpret data, it can help to increase profits and improve the bottom line.

The following is a list of the top 10 benefits of using RPA for claims processing:

  • 1. Higher compliance:
    The laws that are issued by various local and international regulatory agencies are strictly regulated and must be followed by insurance businesses. By allowing the bot to record each step of the claim processing, these restrictions can be strictly enforced. As a result, firms will be able to continuously check and evaluate records without worrying about mistakes or missing data, which will significantly improve insurance compliance and governance.
  • 2. Improved accuracy:
    RPA can help reduce the inevitable human error that occurs. For example, property and casualty insurers must accurately assess damages. It can be difficult to maintain perfect accuracy when manually reviewing information from paper or PDF forms. Having a robot do repetitive tasks can help speed up the claims process, leading to an efficient process. If there are any inaccuracies or discrepancies in the data, the bot may need human help to investigate them further.
  • 3. Reduced costs:
    RPA can help to reduce the cost of claims processing by automating tasks that are often performed by human employees. This reduces labor costs and optimizes workforce usage. Then, the savings can be used for investment opportunities to scale a business. RPA reduces the need to hire new employees for repetitive tasks.
  • 4. Eliminates the need for storage:
    With RPA, all the data is stored in the cloud. This helps to save on space and hardware costs. The archives can be maintained with fewer people and money. In addition, since the electronic archive does not take up much space in the real world, physical storage costs are also saved.
  • 5. Visibility to the client:
    RPA can help increase customer satisfaction by providing transparency into the claims process. For example, some chatbots can provide status updates to policyholders about where their claim is in the process. When a client files a claim, they are typically presented with a flowchart outlining the different stages their claim must go through. The dashboard tracks customers’ login activity and provides them with real-time updates when they log in. Automated claims handling software can save money and improve customer service.
  • 6. Increased agility:
    RPA can help to increase the agility of an insurance company by quickly responding to changes in the market or customer needs. An automated bot can help employees focus on interacting with customers more easily than dragging and dropping documents between departments. This system helps to streamline and speed up the claims process by organizing the vast amounts of data flowing through the department and increasing customer satisfaction.
  • 7. Increased scalability:
    RPA can help to increase the scalability of an insurance company because employees have more time to focus on complex tasks that can increase the scope of the business. Customer satisfaction and productivity rise with the addition of RPA. Make sure to have a plan in place early on to scale with the entire leadership team’s support.
  • 8. Improved data security:
    RPA can help to improve data security by ensuring that sensitive data is not mishandled. Data encryption provides secure data usage. RPA allows options to create role-based authentication processes and eliminate unauthorized access. Removing human error and using accurate bots for data processes provide extra protection against threats.
  • 9. Increased competitiveness:
    RPA can help to increase the competitiveness of an insurance company by automating tasks that are often performed by human employees. Businesses have an edge over their competitors by completing tasks quickly and accurately. This can help to improve customer satisfaction by providing transparency into the claims process and increasing the agility of the company.
  • 10. Improved sustainability:
    RPA can help to improve the sustainability of an insurance company by providing extra time to analyze environmental strategy, saving paper due to digital reporting, and decreasing energy usage. Employees can use their time in beneficial ways to increase sustainability.
How Will This Impact ROI?

RPA can have a significant impact on insurance ROI by helping to reduce costs and speed up the claims process. By automating repetitive and manual tasks, RPA can help insurance companies save time and money. In addition, the sped-up claims process can lead to improved customer satisfaction. These benefits can all contribute to increased profits and a higher ROI for insurance companies.

There are 5 considerations that may impact ROI:

  • 1. Platform security:
    Every employee should bear in mind cybersecurity threats. While embarking on the RPA journey and aiming for a high ROI, you must not ditch the protection threats a cloud platform can possess. Be extra cautious as one cyber attack can adversely affect your ROI. Make sure to check the extent of security and compliance standards of your vendor, and compare them with others within the market. Not all vendor security is the same.
  • 2. The size of the company:
    Smaller companies may see a higher ROI than larger companies because they have less to lose and more to gain from automating their processes. To get a larger ROI, smaller companies usually have to take risks.
  • 3. Is the platform well-known?:
    Every RPA bot needs a final touch from developers. If you are choosing a less popular tool, it makes it difficult to find trained resources within the market. Then, you will need to spend time training the developers, which could stifle your growth plan and even increase project costs. If scale and ROI are priorities, select “well-known” platforms.
  • 4. How easy can the platform scale?:
    You can only experience real ROI once you are able to scale. You can always start small and scale later, but you want your RPA platform ready to scale whenever you’re ready. For a scalable solution, cloud automation could be a better option.
  • 5. Is it user-friendly?:
    Most RPA tools need some developer interference to create error-free bots. Choose a vendor with a platform that’s easy for workers without a technical background. For example, subject-matter experts or business users. By empowering these citizen developers to form their bots, you will reduce the dependency on your busy developers, which could accelerate scaling. Remember, more automation equals more ROI.

The number of processes automated will have the most direct impact on ROI. If more processes are automated, the company will save money and time, leading to a higher ROI. In addition, the complexity of the processes being automated will also impact ROI. If the processes are simple and well-defined, they will be easier to automate and will likely result in a higher ROI. Finally, the company’s overall efficiency will also impact ROI.

Are You Ready for Your Own Positive Outcome?

Overall, If you’re looking for ways to improve your insurance company’s ROI, RPA is definitely worth considering. RPA can have a significant impact on ROI for insurance companies by automating repetitive and manual tasks, RPA can save time and money while also speeding up the claims process. These benefits can all contribute to increased profits and a higher ROI.

Don’t forget, the number of processes automated will have the most direct impact on ROI. So, if you’re looking to make the biggest impact, start with automating as many processes as possible. And, if you’re looking for an easy way to get started, check out our RPA software today. It’s designed to be user-friendly, even for those without a technical background, so you can get started quickly and easily. Plus, it offers the scalability you need to grow your automation efforts as your company grows.

So, are you looking for ways to improve your insurance company’s ROI? RPA is definitely worth considering. Automating the calculation of ROI can help insurers get real-time insights into their financial performance. What are you waiting for? Get started today and experience the positive impact RPA can have on your insurance company’s ROI.

RD Global is a provider of robotic process automation software. We provide our clients with the tools they need to automate their business processes, so they can focus on more important projects.

To learn more about how RPA can benefit your business, contact RD Global today! We would be happy to answer any questions you have and help you get started on your journey to increased ROI.

"Insurance Technology leader and Software entrepreneur with decades of experience leading technology initiatives for fortune 500 organizations. Rajesh Nambiar founded RD Global to create a unique digital consultancy offering high quality software solutions with an extreme commitment to customer experience."

OCTOBER 21, 2022
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.