There is a compelling case for greater adoption of RPA in Insurance. Here’s looking at some of the key reasons behind the same.
What is Robotic Process Automation (RPA)?
RPA or Robotic Process Automation is the process of fully automating some business operations or processes via robots. This helps in lowering human intervention and saves costs. RPA uses robots and software with AI and machine learning abilities for tackling repetitive and high-volume jobs which humans had to execute previously.
What are its uses & benefits for businesses?
There are several advantages offered by RPA for businesses across the spectrum. These include the following:
- Freeing up workforces towards more vital functions and advanced decision making requiring greater intelligence.
- Reducing costs on manpower and time.
- Enhancing productivity and scalability.
- Lowering chances of errors.
- Ensuring greater organizational efficiency.
- Improving processes and redeploying resources for high-value jobs.
- Enhanced compliance and service/product quality.
- Improved customer service.
How is it useful in insurance industry?
Robotic process automation in insurance can be a game-change for the sector, helping it usher in greater efficiency and productivity. RPA imitates administrative and transactional tasks which are repetitive, based on rules and require no human decisions to be taken.
RPA in insurance industry is a great fit since it enables automation of the entire process lifecycle (end to end) through the integration of new technologies at the front end with the back office. Here’s how it can be a big boon:
- Registration & Processing of Claims- Processing and registration of claims requires insurance companies to garner huge data from multiple sources. This necessitates complex manual processing at the same time, thereby hindering service timelines and the overall customer experience. RPA can cover the various stages of processing and registering claims including data extraction, error tracking, verification of claims, integration of data sources and more, thereby enhancing customer experiences and making the process swifter.
- Underwriting- RPA enables automation for the data gathering process across multiple internal and external channels, thereby lowering underwriting timelines. It helps in populating multiple fields for systems internally with proper information while helping generate recommendations/reports during assessment, thereby speeding up the process for product underwriting and pricing alike.
- Regulatory Adherence- RPA helps in automating processes like validation of existing customer data, generating regulatory reports, sending account closure processing notifications, etc. This lowers regulatory breach related risks while enhancing compliance.
- Business and Process Analytics- RPA can help in tracking tasks executed by robots while helping measure exceptions. This helps with improving processes, compliance and lowering timelines for customer service responses and responding to claims as well.
- Policy Servicing & Admin- RPA helps connect all key functions and players within every silo or process for getting multiple tasks done without any extensive navigation throughout systems. Tasks like credit control, accounting, risk capture, settlement and regulatory compliance are automated along with back office processes.
- Registration of Forms- RPA helps in automating and enabling completion of processes within 30-40% of the actual time taken for registering forms with only 50% of the actual workforce needed for the job.
- Cancelling Policies- Cancelling policies covers several transactional duties including tallying dates of cancellation, policy dates, inception timelines and more. RPA can help automate processes, achieving completion of processes in 1/3rd of the original time required.
- Distribution & Sales- RPA can ease up overall sales and distribution processes, covering sales scorecards, agent notifications, compliance, credit and legal checks and so on.
- Accounts & Finance- RPA based systems can enable temple auto-fill, pressing buttons, keystrokes, clicks, copy-pasting of data, field-entries and a variety of functions. This helps in automating a major chunk of regular reconciliations for insurers while lowering transactional costs at the same time.
- Integrating with Legacy Applications- Insurers continue to depend on legacy applications for ERP/BPM system implementation and other needs. RPA easily integrates with these legacy applications, offering greater scalability for insurance companies.
- Scaling Up- RPA can be scaled up with innumerable bots being deployable as per requirements and even rolled back without any additional costs.
- Basic Functions- RPA covers basic functions like data entry, reading/scanning of data, downloading data of policyholders from various sources, verification of insurance timelines, compiling data from various systems, flagging data errors/mismatches, generation of follow-up alerts, ensuring fast approvals and more.
RPA in Insurance is a match made in heaven
Indeed, RPA is an amazing fit for the insurance industry and even reports have opined that 20-40% of overall capacity can be freed up with RPA at the enterprise level itself. Customer experiences are enhanced while several tasks are automated, thereby increasing savings, productivity and overall efficiency.