Robotic Process Automation (RPA) solutions in Insurance Industry

Today, the buzz is all about Automation and robotically handled Processes. The majority of global companies are adapting to Process Automation workflows. One of the key domains to catch up with the pace of Automation is the Insurance Domain. The process workflows for an insurance employee are very tedious and complex. Also, the data needs to be maintained securely and processed accurately. Hence, such Insurance processes have become a hot favourite for Robotic Process Automation.

Let us understand the importance of RPA in the Insurance industry

What are the challenges faced by insurance companies?

Before we dig into what RPA can do to enhance Insurance processes, let us look at the current problems faced by these companies. A huge volume of data is exchanged between insurers and insured through different channels. All these data must be stored carefully and precisely. The data collected needs to be properly checked for any discrepancies before processing. Also, the companies have to speed up this whole process to handle such information.

The focus of the Insurance industry is to build a dynamic and growing business that reduces risks and also minimizes the overall cost. Also, customers, today need everything delivered at a click of a button which calls for informing the customers, listening to their demands, and networking with them, thus creating a customer-centric process. Due to all these reasons, IT systems currently maintained are very complex and rigid. Also, they pose a high financial and operational risk for their insurers. If we have to address the problems in points, we can majorly define the challenges that an insurance company faces as:

• Data transfer from multiple sources: Insurance data can be collected manually or through systems. All these need to be in sync and stored centrally. Also, each data obtained from different sources need to be entered into one system manually. This demands high accuracy and in-depth knowledge of Insurance workflows to complete the task.
• Integrating new systems to existing workflows: The workflow maintained currently is very complex. If the company decides to integrate the new ERP or BPM solutions with the existing workflow, it will consume a lot of time and effort to complete the task successfully.
• Regular Compliance Updates: Insurers are required to follow the latest compliance standards as per their government rules. These can change regularly and such changes need to be dynamically updated in the system. For this, the process needs to be flexible, accurate, and time-saving.

Process automation promises to enhance the quality of insurance services.

The majority of the challenges faced by Insurance companies can be handled by Insurance Process Automation. Through RPA solution in the Insurance sector, we create virtual software bots which perform repetitive and rule-based processes. Be it Payment Processes, Sales Planning, integrating various applications, Data Entry, or updating Insurance policies, a bot can handle all these processes effortlessly and accurately. These bots are a better replacement for manual workflows which work as per standards, increase the quality of services offered, reduce cost and minimize the processing time.

RPA solutions in the insurance industry

Many back-ends, front-end, administrative, and other Insurance processes can be converted into Automation in the Insurance industry. Below is a list of major RPA solutions in Insurance workflows that can be managed by bots and enhance the productivity of the company.

RPA Claiming process-

In an insurance company, once the contract is concluded, Insurance Claiming Process begins. This process handles a large amount of data which are collected from various internal and external sources. Handling Claiming Process manually is very tiring and time-consuming, especially from the customer’s point of view. If we use Robots to handle Claims, it will handle the Claiming process effortlessly. Studies show that the processing time of handling claims through automation can be reduced by an average of 75 percent. A bot can easily extract data from multiple sources, it can integrate all the processes and can work on the step-wise repetitive claiming process with high accuracy. For large companies, in particular, RPA will efficiently reduce a lot of time and money, and enhance customer satisfaction through a fast RPA process.

RPA Manual data entry process-

Every company by default maintains a database of customer information, employee information, administrative data, or other company-related data. Insurance industries have to deal with a lot of customer transactions and all these have to be well-maintained within the database. Customer data or claim-related data need to be updated with high accuracy and should be entered quickly. As the data entry process is highly repetitive and rule-based, it is the best fit for RPA implementation. RPA not only helps in reducing the overall processing time but works with 100% accuracy without any manual error. This way, the company’s data is effectively maintained, and the overall cost of the process reduced.

RPA Policy cancellation-

Cancellation of a policy is as tedious and time-consuming in an insurance company as concluding the policy. Cancellation requires multiple approvals, and it needs to verify a lot of information before completing the process. Replacing manual processes with Robots can make this process very simple, time-saving, and cost-effective. Also, the termination of the data can be handled faster and more objectively from the company’s perspective. Robots can minimize the cases of Insurance fraud and benefit the risk-taking processes.

Improve regulatory compliance

All the processes of the Insurance Company highly adhere to compliance. Data protection, tax regulations, and prohibitions of disclosures are part of this compliance system. As the government and other entities keep updating the compliance standards, the company has to keep up-to-date with the new policies. Compliance protects the company but for employees, it is a very complex and elaborate process. If the company converts this into a Robotic Process, it is easier to do this kind of transition and be updated with the compliance standards always. Robotics in the Insurance industry can also lead to less human error and reduce the time and cost of the overall process. Also, robots follow the rules strictly. Hence, there is no scope for compliance violation due to human decisions.