RPA (Robotic Process Automation) lets companies automate numerous manual tasks. Examples could include data collection, cleaning, feeding into the system, validation, and other downstream labor-intensive tasks. This opens up a new paradigm of productivity gains that various industries are leveraging. RPA has been adopted by leading players of Insurance industries as they unlock unprecedented efficiency gain.
Processes suitable for RPA
RPA is ideally adapted for repetitive and extremely manual tasks. Examples of typical activities include:
- Data entry
- Data transmission
- Report generation
- Data collection
Claims Processing Workflow
- Claims intake
- Claims assessment
- Claims settlement
Challenges in Claim Processing
Quick and effective processing of claims is key to insurance companies’ profitability and it is also a time-consuming, highly manual process that frustrates both insurers and consumers. The processing of claims usually takes several days, because insurance companies need to collect and review data from various sources, such as:
- Validation of documents, records, and assessments
- Verification workflow involving images of damaged assets
How Automated Claims Processing Workflow Can Help?
Implementing an automated system handling claims, including receipt of claims, evaluation, and eventually, resolution of claims reduces complexity and expense by integrating RPA, machine learning, and human experience to streamline and accelerate claim-related operations.
For example, an RPA bot will extract the details from the applicant while processing an application for the First Notice of Loss and enter it into the claims system. If the argument is complete, then a cognitive bot will validate its details and mark it for payment approval. If data is missing, the job will be redirected to an agent to execute, and the bot will observe how the agent manages the exception and “learns.”
Due to human mistakes, such as misplaced financial data or customer information, it can take much longer. Such delays may result in the company’s loss of customers and other financial and reputational harm.
- Better productivity
- More capacity for a growing business
- Improved retention
- New insights leading to material cost savings, e.g., new preventive measures for loss mitigation.
For organizations RPA has the following implications:
- Reduced turnaround times in process
- Higher quality outcomes
- Scalability and agility
- Improved measurability (Digitization of manual process steps)
Pros & Cons of Robotic Process automation
Greater Efficiency – The production can be significantly improved when technology does the heavy lifting, as is the case with RPA. Besides, knowledge workers would be empowered to apply their expertise and experience to more critical projects driving innovation and development.
Elimination of Human Error – Even the most diligent human worker may make a mistake at times. Sadly, these mistakes can also prove to be extremely costly. This risk is decreased with robotic process automation technology, which ensures greater accuracy.
Cost Savings – While robotic process automation needs an initial investment, the resulting improvement in output and profitability, as well as the reduction of human errors, is more than worth the expense.
Lower Turnover – As dull, tedious, and routine tasks no longer bog down the human workers, rates of satisfaction will inevitably increase. In turn, workers will enjoy the opportunity to engage in higher-level initiatives, which will also contribute to greater employee satisfaction and retention.
Monetary Spending – Financial limitations are among the main reasons why corporations tend not to adopt RPA.
Lack of Technical Knowledge – Most people assume that the end user needs to possess substantial technological know-how to exploit robotic process automation. This misunderstanding also prevents them from reaping the other advantages that they can receive.
Redundancy – Another common concern for those who are opposed to RPA is the belief that robots will replace human jobs when their main function is to help people at work.
Nearly all of those so-called robotic process automation drawbacks essentially stem from lack of understanding and fear of change. The benefits of RPA will be completely accepted and understood when these challenges are tackled appropriately. For example, educating on the various options, critically assessing the many advantages, correctly evaluating ROI and resolving employees’ unfounded beliefs will help make implementing automation a far more positive experience.
How Automation will Transform Insurance
The RPA market has expanded at breakneck pace and is projected to hit 5 billion US dollars by 2020. Although this trend has long been adopted in the banking and financial services sector, the implementation of automation in the insurance industry has been much slower. With both RPA and Intelligent Automation, insurance firms are just beginning to launch pilot automation programs. It is expected, however, that the effect of these technologies on the sector will be huge including:
- Effect on Insurance Jobs: Automation would reduce several workers and build new ones too. Employees liberated from repetitive copy-paste and data-entry activities would be able to provide customer service that is more personalized and of higher quality.
- Production Technology: Automation tools should be incorporated into the current IT infrastructure, thereby ensuring greater communication between different systems.
- Improved & Personalized Customer Service: Customer onboarding, for example, would change because bots will do time-consuming tasks, such as anti-money laundering. This technology will help bridge the gap between employees and customers and make more personalized service possible.
So, are you ready to take that first step? Experience yourself how effective and powerful the right automation tool can truly be for your employees and your business. Contact us.