Insurance operations, as you know, are like an insanely complex machine, crammed with a ton of moving parts. And, just like a machine, each part needs to work with the others to make sure the whole system functions. Yet, in insurance, this can be a bit daunting since there are huge volumes of claims, quotes and policies for processing every day.
This is where robotic process automation comes in.
RPA is the well-oiled machine behind your machine. It automates routine, repetitive tasks and lets employees focus on more complex tasks. It’s like having a full team of robots working endlessly without getting tired. Just like how the engine of a car works to keep a vehicle moving forward.
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What is robotic process automation in insurance?
Robotic process automation is technology that automates your routine, repetitive tasks. It’s backed by software robots (aka bots) so tasks come off your team’s plates. Almost 50% of Fortune 500 companies are using automation, with the number steadily increasing.
RPA in insurance can streamline and automate tasks like claims processing and underwriting. It can also help to automate policy admin and customer service.
Robotic process automation in insurance can reduce errors and boost efficiency. That then can lead to cost savings for your insurance company. For example, you can use RPA to extract data from forms and then put it into the right fields in your insurance system. This saves time and reduces the risk of errors that can occur when data is manually entered.
You can also use RPA to automate your customer service tasks. For instance, it can answer your FAQs or process simple claims. This can free up your team to focus on the more complex tasks.
Features of robotic process automation in insurance businesses
Scalability: You can scale your automation up or down, depending on your workload. That makes them a super flexible, cost-effective option for insurance.
Speed and efficiency: Automation is, well, automatic. So instead of waiting for a human to complete a task during business hours, your bot can do it in literal seconds, 24/7.
Improved accuracy: Because you program your bots against super specific rules and guidelines, it returns exactly what you want every single time. That leads to fewer errors and higher accuracy rates (all super important for insurance!).
Integration with existing systems: Add robots to your existing platforms for simple, seamless operations. Plus, because you’re RPA will live with your existing tech, it’ll be easier for your team to start using the tech.
Analytics and reporting: You’ll get better data faster. That means you’ll get insight into process performance and quickly find areas for improvement.
Top benefits of RPA in insurance businesses
Cost savings
By automating repetitive tasks, you can cut down your reliance on manual labor. And that’ll lead to significant cost savings.
Enhanced customer experience
Because you have a faster, more accurate process, customers can expect the best experience every time they interact with you. (Which is good, since that’s already exactly what they’re looking for.)
Increased employee productivity
Since the robots will take over the mundane tasks, your team can focus on higher-value activities. For instance, they can spend more time on complex customer needs. Or, they can improve their strategic planning or sales initiatives.
Reduced risk of human error
Bots execute based on a set of pre-established guidelines. And as such, the risk of mistakes from human errors is, well, gone.
Compliance and security
This is a biggie! Since you’re held to such strict regulations, your RPA systems can ensure your compliance. Plus, your robotic process automation in insurance can boost security. It’ll restrict access to sensitive information and maintain audit trails while processing data.
Robotic process automation use cases in insurance
Claims processing
RPA can streamline the submission and verification of claims. And then, you’ll see quicker claims processing time and enhanced precision. This leads to faster customer payouts and reduced operational costs for insurance companies.
Underwriting
RPA helps underwriters gather and analyze data. And that makes it easier and more efficient to assess risks and determine policy premiums.
Policy administration
RPA can streamline policy administration tasks. For instance, it can automatically generate documents, policy updates, and renewals. That cuts down the time and effort your team needs to spend managing policies.
Customer support
RPA automates everyday customer service activities. It can address common questions and help customers in navigating claims procedures. This lets your support team concentrate on handling the more intricate issues.
Fraud detection and prevention
Another biggie, RPA can ID potential fraud cases by watching patterns and anomalies in data. This helps you prevent fraud and mitigate losses. (Plus, you’ll quickly become your compliance manager’s best friend.)
Regulatory compliance
You can stay compliant with industry regulations through automation. Start with report generation, data validation, or monitoring. By maintaining uniform and precise data processing, you’ll limit the risk of non-compliance. (And all the related consequences and penalties.)
Onboarding and enrollment
RPA can streamline new customers’ onboarding and enrollment process. It can automate tasks like data entry, document verification, and first conversations. This can then lead you to attract new clients, too.
Premium calculations and billing
Robotic process automation in insurance can simplify your calculations and billing. Not to mention, it’ll ensure accurate and timely invoicing. Plus, it’ll reduce manual effort.
Policyholder communication
Send policy updates, renewal reminders, or payment notifications, automatically. By doing so, you’ll boost CSAT and lower the risk of policy lapses from overlooked or missed comms.
Challenges and Considerations for Implementing RPA in Insurance
Okay, now that you know the pros, let’s take a look at some of the challenges of robotic process automation in insurance.
Selection of appropriate processes
You have to figure out the right techniques for you unique company to deploy RPA. Start by carefully evaluating your workflows. Then, earmark the repetitive, rule-based processes that have the highest potential for cost savings or efficiency gains.
Employee training and change management
Adding RPA means your team will change the way they work right now. And yes, that’s a good thing, but it’ll be a hard thing at first. So, add training and support during the transition. This might look like addressing potential concerns about job security. Or it may help employees to understand the benefits for their roles.
Data security and privacy
As we’ve mentioned, you’re beholden to some seriously strict regulations. As such, any technology you use has to adhere to the data security and privacy regulations.
Ongoing maintenance and monitoring
RPA tools need regular maintenance and updates to ensure optimal performance. Start by documenting a process for monitoring and maintaining your solution. This should address any issues or bugs that arise.
Vendor selection
Choosing the right vendor is vital to your success. Carefully review potential vendors. Consider their experience. Look to customer reviews, and make sure the features and functionality meet your needs.
The TL;DR
Adding robotic process automation in insurance can help transform your traditional ops. And it can pave the way for more innovation in your customer service and processes. While the benefits of RPA are clear, make sure to consider all the challenges (and best practices, too) for success.
How insurance leaders can use Capacity to automate tedious tasks
A unique perspective on the topic is the role of companies like Capacity in shaping the future of RPA in insurance. Capacity, an AI-powered support automation platform, offers a unified, low-code solution that connects an entire tech stack, automating repetitive tasks and addressing business challenges. By providing a conversational AI interface, intuitive task management, and a flexible database, Capacity allows insurance companies to use RPA in a more accessible and user-friendly manner.
Capacity’s platform empowers insurance teams to answer over 90% of FAQs, reducing support ticket queues and streamlining customer interactions. Moreover, it enables automating time-consuming processes through workflows, enhancing productivity across various teams. Capacity’s user-friendly knowledge base and app integrations further allow employees to access vital information, revolutionizing insurance companies’ operations.
Insurance companies implementing RPA into existing workflows and empowering employees with accessible, AI-driven tools are bound to succeed in the competitive insurance industry.
