Among many industries that are burdened with rule-based and monotonous tasks, the insurance sector figures prominently. Daily insurance operations and clerical tasks are defined by their manual and repetitive nature.
In such a scenario Robotic Process Automation or RPA in insurance is a need of the hour. The high degree of automation that is brought about by this technology allows insurers to create a productive environment while maintaining cost-efficiency.
There are plenty of use cases of RPA in insurance which can help it to effectively deal with pressing challenges like receiving manual input from different sources of data, the connection between novel and legacy applications, and effective compliance maintenance.
RPA in insurance sector is especially useful for those engaged in customer-oriented tasks as they are prone to a high amount of mistakes and errors. Let us find out how exactly this automation technology benefits this sector.
1. Time and Cost-Effective Data Processes
A critical problem that insurance firms face concerns high volumes of data in differing formats. Employees need to tabulate it manually in order to process, acclaim, or quote. This process takes hours and sometimes days and weeks.
Thus, these manual processes apart from consuming time also consume a lot of money. On top of this, the labor-intensive data entry is highly vulnerable to discrepancies and human errors. But it can be done away with the introduction of RPA technology.
It brings about efficiency in data processing, proves it against errors, and also makes it speedier. Thus, employees can free themselves of repetitive tasks and engage themselves in complex ones.
2. Easier Integration with Various Systems
There are many insurance firms that have utilized traditional systems to conduct their operations and processes. It is mainly because of the challenges they face while integrating new IT systems with their existing software and systems.
The process of replacing or installing support systems comes in with a huge cost, hence, they become reluctant to overhaul their existing applications for the better. RPA in insurance sector presents itself as a much-needed solution to this problem.
This non-invasive technology enables firms to do away with expensive integration projects. Because it can easily deal with system updates, it streamlines the integration process. Thus, the challenge of maintaining a connection between legacy and new systems is effectively resolved.
3. Ensures Regulatory Compliance
Dealing with privacy and compliance regulations is common for all insurance firms. Besides, as the privacy laws are subject to frequent changes, it directly affects the operating processes of insurance companies as compliance with the changes becomes vital.
To meet the regulatory requirements, it is imperative for firms to preserve the audit trail of all the processes that are followed. They also need to respond to changes within a deadline. RPA in insurance comes as a fresh breath of air for those who are involved in maintaining audits.
RPA software produces a comprehensive log of each transaction, which facilitates better tracking of processes. It thus leads to the maintenance of compliance. RPA tools enable more than the usual number of cases to be processed in real-time. Thus, the issue of backlogs is eliminated and the firms are equipped to deal with external audits in a much better manner.
4. Scales up the Company’s Work Capacity
It is a fact that humans cannot work 24/7, all 365 days of the year. However, robots certainly can. They are immune to exhaustion, unlike humans, and can automate processes without the need of undergoing any training or stopping in between.
It enhances the existing work capacity of a firm without any sacrifice on quality. Every insurance firm can benefit from an RPA solution, tailored to their needs that are developed by a robotic process automation company.
As a company grows, so does the need for manpower performing similar tasks grows. Deploying more robots instead of spending time on training new employees is a viable solution. By liberating individuals from engaging in redundant tasks and processes, RPA over a period of time allows a company to scale new heights of productivity.
5. Enhances Customer Experience
The insurance industry is characterized by huge volumes of data and processes that are transactional in nature. The very structure of this industry makes it conducive for automation. Tasks like compliance reporting, claim process, verification of documents, among others can be expedited with the help of RPA in insurance.
All this paves the way for optimized customer services and the establishment of better customer relationships. RPA tools can enable insurers to design personalized journeys, rather than using more or less a one size fits all approach.
Long Term Impact of RPA in Insurance Industry
An industry like insurance, which needs efficient and quicker processing can greatly benefit from robotic process automation. The insurance companies that have leveraged this technology has been able to overcome some of its most pressing challenges pertaining to lengthy processes and shortcomings in their existing systems.
As the competition increases, the future of RPA will make it a necessary technology in the absence of which firms will struggle to attain customer satisfaction, cost efficiency, and productivity.