Is IPA Ushering in a New Era of Insurance?

By Insurance CIO Outlook | Monday, May 11, 2020

IPA helps insurers automate manual tasks, boost customer service and drive significant operational efficiency.

FREMONT, CA: Although the insurance industry is not immune to adopting new technologies, there is still a lot of ground to cover in automation and digital transformation until recently. There was still potential to optimize operations by more than 40 percent by leveraging the disruptive robotic and cognitive automation. Insurers today are increasingly focusing on optimizing the cost of underwriting, claims, and billing processes by using Intelligent Process Automation (IPA). According to Plug and Play, using IPA is a big leap in the digital revolution. The following illustrates the value of IPA in the insurance industry.

Claims Processing

When an insurance claim is submitted, it typically comes up with multiple types of information, and most of it is unstructured. With IPA, insurers can automate the process of extracting relevant data from the submission of a claim. It also automates the claim classification process to get the claim to the most appropriate adjuster more quickly. IPA also aids in claim annotation, to assist the adjuster in understanding the basis of a claim, and in identifying potentially fraudulent claims.

Regulatory Compliance

Insurance is a highly regulated industry, having various needs. This makes responding to authority requests for information an important, laborious, and time-consuming business process. With IPA, insurers can create natural language queries that allow them to automate processes such as the retrieval of a provision or a term definition and relevant explanations of variability. IPA is also useful in automating the process of finding historical responses to questions and objections.

Underwriting Process

For insurers, the underwriting process can involve massive documentation that has to be reviewed to come up with an accurate quote. Insurers can harmonize this process with IPA by automating the process of data extraction to enhance overall workflows. Such a process enables the insurance company to automatically extract the relevant far more quickly, resulting in lesser response time, thus improving customer satisfaction. For the insurer, using IPA improves accuracy, efficiency, and profit.

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