RPA in Insurance – How RPA can be a boon to insurance companies?
Managing and processing the immeasurable amount of data in the insurance industry is remarkable. A very high number of repetitive activities are executed by millions of employees every day to process these data. Activities such as processing of claims, underwriting, servicing policies, and others, do not require an employee to think but to follow a predefined set of criteria. Employees complete one activity after another in a robotic fashion without giving much thought to what they are doing. These are mind-numbing activities for the employees. There is no creativity, no self-development opportunity, and no job satisfaction. Moreover, if you see it from the perspective of automation, all these repetitive activities could be automated and save costs incurred by companies on employees’ salaries and benefits.
Robotic Process Automation (RPA) can help insurance companies transform their operational activities and gear up for more revenue. It has the potential to not only free employees to look for opportunities where they can grow themselves, but it can also make companies more responsive to the changing business environment. RPA makes companies agile when it comes to handling changes and adopting something new. They do not have to convince thousands of employees to accept the change, few adjustments in existing RPA processes will be enough to embrace the change.
Insurance processes which can be automated
RPA can be implemented to automate several processes in insurance companies. Below listed are few processes of insurance sector where RPA can be implemented:
Processing of claims
RPA can gather data from various sources to determine whether a claim is eligible for reimbursement. It can verify the claim requests for the availability of required information, validate the data, and authenticate the application. In the end, the client is either reimbursed or denied the money claimed.
Fraud in the insurance industry is quite common such as false claims, inflated claims, disaster fraud, faked death, and others. Employees, when assessing the applications manually, may make mistakes or misconstrue details provided by the customers and approve the wrong claim. It often occurs due to the inability of the employees to accurately validate extensive customer data every time with similar efficiency and reach a correct conclusion. RPA, on the other hand, can thoroughly analyze past data, detect anomalies, and generate alert for human employees for further assessment every time with the same efficiency.
Underwriting and pricing
Through underwriting services, insurance companies accept the financial risk that occurs from losses or damages and pay equivalent amounts to the customers. A company can use RPA to assess the risk level of a client and determine the price it should charge to insure the risk. RPA can do a detailed risk assessment by collating and analyzing data from appropriate internal and external sources.
Working with legacy systems
When it comes to staying relevant with the fast-paced business environment, companies are expected to upgrade their infrastructure now and then. It adds cost to operating the business and temporarily slows down the processes. However, with RPA, insurance companies do not have to replace their legacy applications. The versatility of RPA allows it to work with new and old systems comfortably.
RPA can be combined with artificial intelligence or machine learning to handle queries of customers 24 x 7. It can also assess customer data regularly and notify customers to renew their policies on time. It can prevent customers from losing their insurance, thus increasing customer lifetime value.
Insurance companies have to comply with various rules and regulations as defined by state and national policies. However, the standards change with time, and it requires that the employees and the customers readily adopt the change. But it rarely happens. RPA can help cope with such change. It can make it easier to stick to the new regulations. Also, building audit trails in RPA is far easier, which significantly reduces the risks related to regulatory breaches.
Apart from these six areas, various other processes are handled in the insurance industry such as renewals, reporting, surrender, endorsement, proposal generation, premium suspense, insurance quote generation, life insurance maturity claim, and others. RPA can be successfully applied in all these areas. It can lower cost, run with efficiency and accuracy, and grow in size along with the business.
How can we help you?
We, at RPATech, help companies transform their business activities through RPA. We have not only helped companies automate their operations, but also identify areas where they can optimize their processes to save time and cost. You can also adopt RPA in your business and prepare yourself for the future. Change is coming, and your competitors are getting ready for it, whether you know it or not. So don’t stay behind, fix an appointment with our team today. Please send your email at [email protected] or call us on (+91) 8010-369-369.