The Utilization Of RPA In The Insurance Industry

by Joseph Ricard Director

RPA is the acronym for Robotic Process Automation and it is one of the fastest-growing technologies in the world.

According to studies, it is estimated that the market of RPA will reach a total of $5 billion by 2024. A wide range of industries including the insurance domain can benefit majorly from the implementation of RPA.

Well, there is nothing new about the fact that the insurance sector is loaded with tasks that are monotonous, repetitive, and mundane. As a result, less time is invested in doing something productive.

Basic, everyday tasks like commercial and personal insurance line onboarding, underwriting, the policyholder servers, processing of claims, etc. There is tons of work that needs to be done but they are all repetitive.

This also affects the total productivity of the organization and tampers with business conversion, profitability as well as customer satisfaction.

The Application Of Robotic Process Automation In The Insurance Industry

With the implementation of Robotic Process Automation, insurance companies can build a business that is highly responsive and boasts steady growth in a cost-efficient manner.

There are ample opportunities for RPA to alleviate a lot of processes in the insurance industry.

Automation of insurance with the help of RPA can be used extensively in the genre for working with legacy systems, automating superfluous processes, and also accumulating external data.

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Now, let us have a look at some of the use cases of RPA in the insurance industry.

Underwriting

It is the process that involves the collection of data from multiple sources for risk assessment that are related to the given policy.

It is a very hectic and lengthy process and takes almost an average of 3-4 weeks in the life insurance sector. Since this is a hectic process, almost 19 million people do not go through with it.

RPA can help in collecting accurate information and then process it automatically in a much faster manner from both external and internal sites.

It helps to free up about 30% of the competency and also guarantees full accuracy thus helping you provide the work before any deadline.

You can also use RPA for risk mitigation and opening the door for new consumers as the response time increases significantly.

Processing Of Claims

Another RPA use case in insurance is that it helps in the processing of claims. This procedure is very much document and data-intensive.

Claims processing needs companies to accumulate huge amounts of data from different sources. As a result, you end up with a lot of data that might not be even useful.

The present claim systems are inefficient and lack flexibility as well as functionality. When this process is done manually, it becomes very lengthy and also there’s no guarantee that it would be accurate.

With RPA, you can easily collect all this data and integrate it into one cohesive system. This ensures that the claim processing gets done faster and more accurately.

Business And Process Analytics

The only way for insurance companies to improve their work operations is by analyzing their current processes.

With the implementation of RPA, this tracking process gets much more convenient. All the workflows or processes that are under the influence of this technology can be recorded and tracked at each step.

It can help the insurance company by providing details about transactions, exceptions, etc. These elements aid them in improving their operations, reducing employees’ workload, and also increases customer satisfaction.

Manual Data Entry Process

There are a lot of examples in the insurance industry where you need to enter data manually. This includes systems like insurance claims, quotations, etc. This process is not only time-consuming but costs a lot of money too.

Besides, doing something manually in a digital world leaves enough room for errors and inconsistencies. With RPA, this whole process is automated and hence gets done faster.

Management Of Legacy Applications

A lot of companies in the insurance sector depend on legacy applications for managing a lot of their business operations.

With the implementation of the new BPM or ERP solution, integrating them with legacy applications is always a challenge.

But you can connect all the existing applications with RPA as the technology is compatible with almost every type of system available.

Regulatory Compliance

An insurance company needs to comply with many rules and regulations along with the HIPAA privacy rules, tax laws, PCI standards, etc.

All these standards and regulations keep upgrading with time and it is important to follow them for the protection of business.

But, it becomes really hard for people to abide by them. With the help of RPA, following and staying true to these rules can be very convenient.

Scalability

One of the major benefits that RPA provides is Scalability as per your requirement. This technology is so smart that it can adjust the capacity based on the demand anytime, anywhere.

Easy Amalgamation

Everything done in the insurance industry is very time-consuming and redundant. All of these can be made much easier with the implementation of image classification and analysis of text for managing communication.

All these technologies will work like a charm once you blend them with the goodness of RPA.

Policy Cancellation

Presently, the cancellation policy is very mediocre and complicated. But, with the help of Robotic Process Automation, this process can be significantly improved.

As with this technology, every cancellation can be done within one-third of the time without having to make any changes to the transactions.

Registration Of Forms

With Robotic Process Application, the process of registration of forms can be revised significantly and it needs way less effort and staff to get it sorted.

EndNote

The insurance world is really mundane and boring. There are loads of tasks that are monotonous but they are important so you cannot avoid them. However, getting them done is time-consuming and it cuts down the productivity of the organizations.

But, technology has advanced quite a bit and RPA is living proof. It is already being used around multiple sectors around the world and soon it will revolutionize the insurance industry as well.