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The Most Powerful Benefits of RPA in the Insurance Industry
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Regardless of whether an insurance company handles auto, life, health, or other types of coverage, much of the daily operations are repetitive admin work. From onboarding new customers to processing claims, these tasks command a great deal of time, personnel, and resources, which drive up costs and eat into profits. This is where engaging a bot to automate much of this work can be a game changer.
What is a bot?
A bot uses artificial intelligence and automation to handle almost any software driven task. Instead of a human worker sitting behind a desk, you can use advanced, intelligent software to perform the same tasks and complex workflows faster and with perfect precision. Bots handle all monotonous clerical work and frees up personnel to focus on more creative tasks that demand a human cognition.
7 examples of automation in insurance
The insurance industry is particularly well-suited for intelligent automation, as there are numerous aspects of the business that involve vast amounts of paperwork, data collection, and administrative tasks. Here are seven areas where bots can produce unquestionable ROI and employee satisfaction.
Underwriting involves gathering information from a variety of places for the purpose of calculating the level of risk a particular policy poses. With traditional data-collection methods, the underwriting process takes up to four weeks from start to finish. Not only does automation speed up this process, but it reduces the likelihood of an underwriter missing a critical piece of data.
2. Claims processing
Processing an insurance claim requires an adjuster to collect as much data as possible, which usually involves pulling information from a number of sources. This can be a time-consuming process that costs insurance companies time and money. With claims automation, the data-gathering timeline is shortened. In addition, insurers can process more claims with fewer personnel.
When Zurich, a global insurance company, implemented automation, it was able to reduce its operational team by 25 percent. The insurance company Hollard Group also started using RPA and saved 2,000 hours per month in processing time, reduced its execution time by 600 percent, and cut its per-transaction cost by 91 percent.
3. Insurance analytics
Like any business, insurance companies can refine their processes when they have data to show how effective or ineffective those processes are. There is always room for improvement, but a business can't implement changes without knowing the numbers behind their current systems. When insurance companies switch to using bots, automation can track things like how many claims are processed in a specific period of time, giving the business invaluable insights.
4. Data entry
Done manually, data entry can take a long time and result in high human-errors that throw off numbers and lead to inconsistencies that impact the bottom line. Implementing automation to handle data entry means eliminating those costly mistakes at rapid speeds, around the clock.
Insurance companies must adhere to a number of compliance standards particular to the type of insurance they offer. For example, health insurers are bound by privacy laws like HIPAA. Running afoul of these statutes and regulations can expose an insurance company to liability and penalties. Automation reduces the risk of an error that can cost an insurance company money and customer goodwill.
6. Adjusting to business needs
One of the primary benefits of automation is the ability of intelligent software to adjust rapidly to a company's changing needs. Like many industries, the insurance industry can go through periods that are busier than others. With automation, an insurer doesn't have to worry about scaling its workforce up or down to accommodate a shifting volume of work or claims.
7. Fraud detection
Fraudulent claims cost the insurance industry up to $40 billion per year and cost the average family up to $700 per year in the form of increased premiums. Automating data collection, claims processing, and other administrative tasks in the insurance industry can reduce human errors that help insurers identify more cases of fraud.
Learn how Thoughtful can save you time and money
Interested in discovering how Thoughtful's bots can help your business do more with less? Get in touch with us today. Be sure to read our case study detailing how Thoughtful helped one behavioral health company improve its ROI by 235%.
May 19, 2021