10 Use Cases of RPA in the Insurance Sector

Let’s face it – industries and sectors like insurance are full of repetitive and mundane tasks carried out by employees whose time and skills are rarely dedicated to more value-added tasks. Some of the day-to-day tasks such as personal and commercial insurance involve things like underwriting and onboarding, policyholder services, processing of claims, and plenty of other things which are important but very repetitive.

From a wider perspective, tasks like these also place a burden on the entire organization, most of which is efficiency – they affect customer satisfaction, business conversion as well as profitability. Luckily, technology now allows for these tasks to be automated – a great example of that is Robotic Process Automation (RPA).

As we said before, RPA is a process that is designed to automate all the repetitive tasks, saving time and money, but also sparing employees and giving them the time to focus on more important tasks. From transactional to administrative tasks, this process automates repetitive and rule-based things, which often don’t require decision-making or strategizing. If we take the robot out of the human, we can see that people are more creative and can accomplish a lot more.

With RPA, the workforce can be automated, and all of the mundane and repetitive tasks can be put on autopilot, minimizing any room for error. Employees can create more value for their organization. Below, we are listing the best use cases of RPA in the insurance sector.

Every insurance company strives to provide the very best to its customers. However, the number of operational and paper-intensive processes makes it difficult for insurance agents to track or even measure operational efficiency. Identifying the potential areas of improvement is also a challenge – but RPA can help with all of that, performing tasks easily and tracking information through efficient bots. With bots that are based on artificial intelligence (AI), audit trails can be set up to support the improvement of each process.

This document-intensive and the details-oriented process can be very time-consuming. On top of it, collecting data in multiple formats from different channels and processing claims require a lot of manual intervention. With RPA, however, claims can be processed a lot faster than humans. Systems can actively use NLP and OCR as processes to extract data and input, claims errors, and fraudulent claims.

People tasked with underwriting are in charge of evaluating and analyzing the risk involved in insuring people and assets. In fact, the entire process involves data collection on things like insurers or their backgrounds. With the help of artificial intelligence (AI) and machine learning, these bots can fill out required data fields in the internal systems, access data from different locations, evaluate loss runs, analyze customer history and provide pricing options or trigger systems at risk and fraudulent cases. As a result, the underwriting process will be streamlined so that customers receive decisions quickly and underwriters can free up their time to handle more complex tasks.

The insurance industry is regulated by strict laws, where manual control compliance is set up to eliminate the risk of human error and regulatory breaches. In addition to this, high volume record maintenance is involved, making compliance tricky. RPA can automate the process and ensure the data is accurate – it follows pre-defined instructions without errors and maintains a complete log of changes. With an RPA bot, regulatory compliance can be made easier – the bot can streamline client research, report generation, account closure notifications, as well as data security operations.

The administration of policies requires a decent system which must be set up so that data is continuously added, but also worked with – rating, quoting, binding, issuing, renewing, and endorsing are all essential tasks within the process. However, policy administration software requires someone to keep things up, which may prevent scaling if the customer base grows. Here, RPA can be used to automate transactional and administrative activities – credit control, tax, regulatory compliances, and accounting settlements are some of the best examples.

Registering forms is something that is very redundant and repetitive – but also a task that is very much necessary in the insurance sector. With robotics automation, bots can automate and assist process completion in 40% of the actual time taken by employees, with half of the workforce required for the same processes.

Next on our list of RPA use cases in insurance is policy cancellation, which often involves plenty of tasks such as tallying cancellation date, inception date, policy terms, and so on. With RPA in insurance, policy cancellation can be carried out one-third of the time.

With RPA, you can automate all the challenging and daunting tasks connected to sales and distribution in insurance. Here, the creation of sales scorecards is a great way to streamline the way you notify your agents, conduct compliance, or handle legal and credit checks.

In finance and accounting, robotics can automate all the areas with clicks, keystrokes, pressing of buttons, and auto-filling of templates or field entries. All of this can be the time that you save and resources that you can use otherwise. Knowing that finance uses a lot of form fields and there are plenty of processes that are repetitive, RPA can help and make the process smoother in many ways.

Last on our list are legacy applications, and plenty of insurance companies still rely on them for business processes handling and implementing ERPs or BPM systems. This practice is quite challenging and demands various forms of integration with legacy apps – however, RPA can very well fit into the workflow of insurance companies and comply with any type of available system.

Digital innovation is happening everywhere around us, and RPA is certainly one of the revolutionary ways insurance companies can embrace robotics for tasks like data entry, scanning of data, data compilation, flagging of mismatch issues or errors, quick approvals, follow-up alerts, and everything that can be automated within a successful RPA plan.

For more information on how we can help you adopt an RPA strategy and make use of robotics automation within your insurance company, contact us today!

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