Insuranceciooutlook

How the Mix of RPA and AI can Fix Insurance Entanglements

By Insurance CIO Outlook | Thursday, September 03, 2020

The mix of AI and RPA offers a great opportunity for insurers to streamline the complex insurance processes and offer improved customer services.

FREMONT, CA: Technological innovations are transforming various aspects of the insurance industry. Processes like claims processing, policy servicing, and underwriting involve a number of repetitive tasks that can be automated for enhanced efficiency. Thus, robotic process automation (RPA) is a natural fit for the above scenario. Further, the possibility of extracting insights from various data sources makes way for innovations such as artificial intelligence (AI) and advanced data analytics in insurance.  

Conventional automation efforts were limited to automating simple, redundant tasks in back-end processes. However, RPA, coupled with AI, can be used to track and deal with exceptions, analyze massive volumes of data generated by external and internal sources. Insurers can then convert them into actionable insights. The applications of AI and RPA are no longer restricted to efficiency and cost reduction. The technologies are also being used to deliver fast services and drive personalization with a higher degree of self-service.

Other technologies, such as wearables and sensors, are also leveraging AI and RPA analytics to provide insurers with real-time insights into risk assessment. The above technologies are also evolving the roles of insurance firms from being risk insurers to risk mitigators. Underwriting is another aspect of insurance that can benefit from RPA and AI initiatives. Underwriters can better identify and evaluate the risks that can impact the insurance carrier. For instance, an auto insurance underwriter might be interested in knowing if a driver has been previously insured and transfer information pertaining to insurance history to the auto insurer’s CRM.

There has been a shortage of advisors in the insurance market due to the massive reduction in the number of intermediaries. Further, mass online selling and reduced premiums due to online portals enable price comparisons and offset the chances for the insurers to gain capital. AI integrated into chatbots can reduce the impact of the above-mentioned challenges by interacting with customers and understanding their needs. Advanced chatbots can also offer basic insurance services such as claims processing that has conventionally required the service of human resources.

Thus, AI, coupled with RPA, can address many of the underlying challenges in insurance and allow the insurers to generate higher revenues.

See Also: Top Artificial Intelligence Companies

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