09 Jun, 2020 | Blogs
Robotic Process Automation (RPA) in insurance is being implemented to help staff automate monotonous and repetitive tasks such as data entry work. RPA is a software robot that is custom configured on computers to effectively handle insurance “low-value-add” operations that currently take time and energy.
While an insurance bot works like Excel macros, it is different from macros because of its ability to work across several systems. These bots can operate at the individual-data-field level and are adept at doing everything, from launching an application to sending emails and transferring data from one application to another.
According to PwC’s 21st CEO survey, 53% of CEOs of insurance organizations plan to modernize the work environment with digital tools. RPA has increasingly become a popular choice in the insurance industry due to the sector’s high dependency on outdated legacy systems that make data transfer extremely difficult. Established insurance companies have to hire workers who can act as a “bridge” between these disparate systems and spend days on reconciling and transcribing data. To avoid additional costs and improve efficiency as well as customer experience, many established insurance companies are turning towards RPA to “connect the last mile” of their disparate systems.
It’s little wonder that RPA is transforming the operations of insurance companies and helping them meet their growing customer demands. Insurance operations are replete with intricate processes and manual work that are high-volume and repetitive. It requires system integration to conduct operations across departments responsible for assessing risks, managing claims, and underwriting. To reduce the rote and time-consuming data-entry tasks across legacy systems, insurance companies are embracing RPA to make their process efficient by as much as 50%. Let us look at some of the ways in which RPA is being used in the insurance industry.
Use of RPA in the Insurance Industry
RPA software bots can speed up all kinds of insurance sub-processes. Below is the list of the most common tasks that can be automated with RPA:
- Launching and navigating between different systems and applications.
- Copying and pasting information for faster data transfer from one system to another.
- Retrieving data from invoices and entering it into the system.
- Opening an email and moving its information in the system.
- Moving important files and folders to servers.
- Filtering and storing information from the internet.
- Automatically calculating data for generating weekly, monthly, or quarterly reports.
The use cases below are a reference point that can help companies get started with RPA. These examples will give ideas of where to deploy the insurance bot and revamp the old way of doing things.
RPA in insurance: use case example #1 Claims Registration and Processing
Claims processing requires staff to collect a large amount of data from multiple sources. Most legacy systems lack the flexibility and functionality to gather such an exhaustive amount of information, leading to manual processing of claims and slowing down the service for customers. When RPA is used in insurance, it leads to automation of various processes and extensively reduces processing time. Bots automate most of the manual tasks associated with claims processing such as data extraction, error tracking, claim verification, etc., thereby expediting the process that results in better customer experience.
RPA in insurance: use case example #2: Underwriting
Underwriting processes involve a lot of data scrambling, analyzing, as well as identifying and mitigating the risks involved. When done manually, it can take companies over 2-3 weeks on average. RPA bots are best used to eliminate the manual work of processing data from different sources, entering information in multiple fields of the system, and creating a report or list of recommendations.
RPA in insurance: use case example #3: Compliance
The insurance is a highly regulated industry that needs constant auditing and documenting work. When processes are handled manually, companies run a risk of a regulatory breach. To improve compliance, companies use RPA to automate processes such as validating customer information, generating compliance reports, and sending account closure processing notification.
RPA in insurance: use case example #4: Analytics
To measure and enhance customer service, insurance companies need to measure and analyze their performance. The huge amount of paperwork and operations make it difficult to measure efficiency and identify areas of improvement. RPA bots solve this problem by providing an audit trail of all the tasks performed by the bots. It allows the team to effortlessly measure the number of transactions processed and exceptions encountered since the tasks performed by bots are recorded and can be traced easily, allowing businesses to enhance claims and customer service response times.
Some of the benefits of RPA in the insurance industry include:
- Lower Cost
- Higher Accuracy
- Better Efficiency
- Streamlined operations
- Non- invasive compatibility
- Improved regulatory Compliance
Explore the fastest RPA for the insurance industry by contacting us today!