Insuranceciooutlook

RPA: State of Automation in Modern Enterprises

By Insurance CIO Outlook | Tuesday, November 27, 2018

Robotic process automation (RPA) has enabled the insurance industry to evolve by enhancing customer experience and improving productivity. The AI automation process reproduces repeating companies’ activities like back-office and customer-related tasks. The insurance companies’ processes are time-consuming and duplicated. AI and ML technologies can automate operations for insurance companies to reduce costs and increase productivity.

As manual tasks in insurance companies are time-consuming and highly prone to errors, this can negatively affect customer retentions and gaining new ones. RPA has a promising approach for improvement in efficiency, reducing claims processing costs along with the compliance and regulations. Underwriting is a long process that involves repetitive actions that require large data collection from various sources by which policy risk can be measured. Underwriting suits RPA implementation to automate the candidate evaluation process from multiple resources. Getting a right prescription, medical history from a healthcare provider reduces the replication of data and deploying AI and ML helps the insurance sector to predict customer behavior through deep learning strategy—an example of RPA implementation.

RPA pilots can reduce cost, and provide high benefits. The manual tasks can be reduced by half, and the operational capacity can be increased. RPA can integrate with the legacy systems. Reproducing the pilot in different markets makes operating insurance companies easier after implementing RPA. There would be a significant decrease in time to pay claims; insurance companies can preserve less to pay the actual claims which show a positive impact on their cash flow. For example, customer requests can be addressed through chatbots to update new address in the policy record which can be done automatically. Bots help in executing the end-to-end process without human intervention. They can automatically validate the data, cross-check the policies and issue invoices. Bots task can be recorded and monitored at each level for further usage.

Technologies like AI and ML can benefit insurance companies and can automate processes for various business units. With the help of ML, customer onboarding time can be reduced due to which the company can focus on productive tasks that ultimately results in employee productivity and customer experience. To implement RPA, insurance companies have to follow some rules like a thorough testing strategy for automation, implementing an end-to-end automated design, instead of focusing on specific tasks result in increasing overall efficiency of the system through automation. Lastly, implementing AI and ML can reduce processing time, rectification of errors, and provide better customer experience.                      

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