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RPA in Insurance: How Automation is Transforming the Industry
Technology is transforming how insurers do business, and one important example of this is robotic process automation (RPA).
“RPA allows companies to gain efficiencies and (hopefully) save money by automating routine tasks,” according to Forbes. Though RPA in insurance is considered artificial intelligence (AI), these new systems are designed to be remarkably easy to use.
So, how popular is RPA insurance automation? TechHQ estimates that by 2025, the amount of global spending on RPA is expected to top $3 billion.
6 Benefits of RPA in Insurance: Why is RPA a Good Fit?
Automation of tasks. “Claims processing, policy servicing, and underwriting involve repetitive tasks that could be automated for efficiency,” according to Insurance CIO Outlook. Pulling data is also a task that can be streamlined with automation.
Employees are available for other duties. If insurance automation can take over particular tasks, employees who would normally handle those responsibilities are available to work on other projects.
Increased savings. Automation is often less expensive than human labor, which means insurers can save time and money. One insurance company claimed it was able to free up 18,000 people-hours, which resulted in a $182,000 savings, according to TechHQ.
Faster response and completion times. Since automation can streamline certain tasks (and often work faster than employees), response and completion times will shrink.
More productivity. Faster response times, shrinking costs, and reallocation of employee workloads is often a recipe for increased business productivity. The automation of certain tasks allows insurers to reallocate employee responsibility, which in turn allows a business to become more efficient and productive.
Improve accuracy. According to The Lab, “using RPA increases the reliability of data. That’s because, unlike humans, robots are unable to key in data incorrectly; nor will their ‘minds’ wander while performing repetitive tasks. But you must resolve bad data being received on the front end for it to work right.”
How Can RPA Affect Specific Processes?
Since many tasks, such as underwriting and processing claims, are often repetitive, these can be automated to enhance productivity, according to Insurance CIO Outlook. These tasks include manual ones such as data entry. RPA in insurance can also handle policy cancellation.
RPA in insurance can also be used in the world of regulation. “Achieving compliance with changing regulatory standards on a local and global level is a fluid, dynamic process,” according to Financier Worldwide. “Companies are seeking new ways to improve their compliance processes, optimize related costs, and ensure accurate reporting.”
According to Forbes, once RPA begins to provide advantages, the issue of how a business can scale while using RPA comes into play. “Scalability, though, is often cited as a limitation of RPA. Many RPA vendors address scalability concerns by focusing on how much hardware is needed to run their application or how easily it can be replicated a number of times.”
In addition, insurance automation can also work with existing systems.
RPA Insurance Trends to Watch
Risk assessment and fraud detection. Automation can help better identify and evaluate risks that can impact an insurance carrier, according to Insurance CIO Outlook.
Employing chatbots to enhance customer service. These popular automated tools are a great way to offer a 24/7 customer service experience. They are becoming so prevalent that 63% of people prefer a chatbot to a real person, according to Adobe.
Transformation of routine tasks. Automation of everyday responsibilities such as claims processing is already increasing efficiency and productivity for many insurers.
Increased use of artificial intelligence to analyze data. According to Adobe, “artificial intelligence has come into the mainstream because it allows us to make sense of an increasingly large amount of data in real time.” Insurers can use this information to analyze risk, change policies, and market to potential consumers.
Conclusion:
There are many benefits to insurance automation, including significant savings and a more productive and efficient work environment. Insurers are using automation to streamline regular, everyday processes to save time and money and provide a more comprehensive customer service experience.
