RPA Automating Insurance Industry- The Use Cases

Mohammed Umar
RPA Automating Insurance Industry- The Use Cases

The insurance industry is easily among the very few businesses that deal with loads and loads of data. Where there is a mass of data, human errors become inevitable. Insurance processes also include a lot of data entry and validation, underwriting and compliance efforts which are often repetitive and time-consuming. Whenever the difficulties of a business process overtake productivity, we have the opportunity to leverage technology to address the challenge! - and in this case, with Robotic Process Automation.   

RPA is a simple and efficient method of automating repetitive, rule-based business processes in order to increase process efficiency.  From customer onboarding to complicated insurance processes, RPA can automate and improve performance and efficiency in several areas.   

  

In fact, a Mckinsey study says, 25% of the insurance industry will be automated, and bots will run the complex data management processes before 2025.  

Sounds interesting? 

 

The RPA in the Equation 

As with every other business, the insurance industry has embraced RPA to automate the heavy data-laden processes in the workflow, such as claims processing, onboarding new customer and forms registrations. Automating these processes, which involves enormous manual data entry and assessment, saved many valuable productive hours and reduced human errors.   

According to Mckinsey, RPA can save up to 34% of an employee time just for data processing alone.   

It is evident that the benefits of RPA are definitely beyond just automating the repetitive, non-complex structured processes or addressing specific process pain-points that affect the efficacy of the overall process. The focus has shifted in the past few years, and insurance companies are building their workflows around automation. Now, automation has transformed the underwriting, compliance and fraud detection aspects of the insurance business as well, and we can expect to see 80% of the processes automated within insurance companies, in the near future.   

The integration of OCR and RPA has seriously revolutionized the way insurance companies handle data. The RPA and OCR team has eliminated the human factor in the data capture and compilation, which causes errors and data mishandling, and helps in the direct transition of data into the relevant process in the workflow.   

In one case, RPA enabled an insurance company to reduce its onboarding cost by 91% and increased processing times by a gigantic 600%. This has also saved the company 2000 valuable productive hours per month. (Source: UiPath)  

 

Few Insurance Process Areas RPA can Enhance.   

 

Claims Registration  

Insurance claims processing is arguably the most time-consuming and document-centric process where the company has to collect all the evident documents regarding the claim before approving it. It's also the process that has several levels of review and investigation to identify fraudulent claims.   

Manual processing of all this data could be error-prone, and these errors can be costly for the insurer, as well as the customer. Also, the faster the claim is processed, the happier the customer. Automating the claims processing can reduce the processing time up to 50% and manual work by a staggering 80%. (Source: WorkFusion)  

  

Underwriting  

Underwriting is one process in insurance that involves analyzing an incredibly large number of documents regarding the customer's background, helping with pricing the insurance based on the risk involved. On average, the process can usually take 3 to 4 weeks. Implementing an RPA bot automates the entire process, from collecting data from internal and external sites, to analyzing customer's claim histories. A lot of time saved there, and more importantly, it's free of errors. No company would want to provide insurance to an unworthy applicant. So, a central dashboard with all the necessary data would be helpful, right?  

  

Policy Processing and Renewal  

Another insurance process involving lots of data and human effort is policy administration.  The more manual the process, the more it's prone to errors. Failing to include an asset during renewal or any other renewal errors can be fatal that could cost the insurance company thousands of dollars. Traditional policy processing software could be expensive and fail to scale along with the business, as it grows. Hence, RPA could be the ideal solution to automate the administrative and transactional aspects of policy administration end to end, minimizing human interference.   

 

Regulatory Compliance  

Insurance is one of the very few industries that are regulated by strict compliance standards. These standards change from time to time, and hence manual control over these standards could be a risk. In addition, any errors or regulatory breaches could cost the business and the customer. RPA can automate almost the entire process and minimize the manual workloads, and makes it error-free. The bot starts with a name screening, does all the compliance checking, and maintains a complete log of changes. These log files can be used to run reviews to ensure the process is audit tight and abides by all the regulatory compliance standards.   

  

Wrapping It Up  

According to a Deloitte survey, the ROI of a good RPA initiative is less than 12 months. But the benefits of implementing one, is everlasting. RPA has already revolutionized the insurance niche, and with the introduction of AI and ML in the workflow, hyper-automation initiatives are making insurance processes independent and more effective.  

RPA is the need of the hour, and one quick call with our process automation experts can transform your insurance business like never before. Why wait? Get started!