RPA The Saviour of Insurance Business?

RPA The Saviour of Insurance Business?

The insurance business is a routine-intensive business. Claims processing, underwriting and generating policy quotes are all repetitive, high-volume routines that simply cannot be avoided. The heavy workload from these routines prevent staff from devoting sufficient time on providing timely customer support and getting new business. In the increasingly competitive business of insurance, neglecting these can seriously affect your competitiveness.

The situation is aggravated not only by increasing competition but also by the higher awareness and expectations of the online customer. This customer can not only compare on the web the offers of different companies but also read reviews about the services delivered by the companies, all from the comfort of home.

Many companies have already gone for a digital transformation to meet these challenges. Practically all companies use computers to help them speed up and streamline business processes. However, conventional IT is proving inadequate to meet the ever growing challenges.

Conventional IT involves studying requirements in detail, designing systems to meet these and writing code to implement the systems. Not only is this a time-consuming task but it can also involve significant disruptions to the way work is carried out now. And when requirements are changing constantly owing to introduction of new products, changes in regulatory requirements and new security concerns, things can spiral out of control.

It is in this context that a new solution that can reduce workload without serious disruption to operations become critically important. Robotic Process Automation or RPA is that solution.

RPA in Insurance

Before we look at how RPA can be used in insurance, let us look at what RPA is and what’s unique about it (compared to conventional IT).

RPA means Robotic Process Automation. The robots in this case are not mechanical robots but pieces of software inside the computers. These robots can be “trained” to simulate human operators and do things just the way they are being done now. They can follow specific rules and:

* Aggregate data from different back-end systems
* Perform calculations as instructed
* Initiate actions and
* Activate downstream activities
The robots can even be programmed to learn the rules while performing the work!

In the insurance industry:

* The high-volume activities of claims processing and providing a quote, for example, include gathering data from multiple sources and entering the information into the company database. By employing RPA robots, the work can not only be done 24/7/365 without break (if necessary) but will also be done without errors and in a consistent way
* Compliance with standards as required by tax laws, PCI standards and HIPAA privacy rules becomes better not only because the robots do the work in a consistent way without errors but also because they log 100% of the transactions and these logs can be monitored regularly
* Insurance is an old established industry and the typical IT environment consists of legacy systems, multiple platforms and different applications. Creating an integrated information system combining all these diverse elements is a highly expensive and disruptive process using traditional IT approach. On the other hand, RPA robots can access data from all these sources and produce an integrated picture
* Because RPA imitates human keystrokes and mouse clicks, the work can continue to be done the same way as is being done now and disruptions of the kind involved in traditional system changes are eliminated
* RPA allows increasing the number of active robots in a matter of seconds and thus scaling up work capacity to meet increased workloads. Such increases can result from temporary needs to process an unusually large number of claims or quotes, or be permanent owing growth in business volumes.

The following partial list of areas where RPA can be deployed points to the high potential of RPA in insurance:

* Sales: Quote generation, Application processing, Underwriting risk assessment
* Contract Administration: Contract Issuance, Endorsements, Policy Renewal
* Customer Service: Customer Contact Management, Incident Management, Update Customer File
* Claims: First Notice of Loss, Claims Review and Audit, Fraud Management

Studies have pointed to benefits from RPA deployment as follows:


* Costs can be reduced to one-fifth of an on-site full time employee (FTE) or one third of an off-site FTE
* Errors reduction can be up to 20%
* Productivity gains can reach 50%
* The impact of freeing employees to work on customer support and business growth will be additional

In an industry worried about low premium growth, increasing loss costs and ever expanding customer expectations, RPA can indeed prove to be just the saviour it needs!

12th Wonder – helps companies to derive business value from RPA. We work with you to:

Understand work processes and identify those that can be automated to deliver business results
Select an RPA platform that is best for the selected processes in your particular environment
Automate the selected processes not only to deliver desired results but also to meet security issues
Train and support your staff to maintain the RPA solution to continue producing business outcomes

 

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