Robotic Process Automation: Gabrielle  receives more than 50 new claims in a given day. She transfers every new claim form into a shared queue folder for processing in order of receipt. Next, each policyholder’s information like date of birth, address, social security number, account number are cross-checked against the company’s claim processing system. It is then moved to the payment processing department.

 

 

These mind-numbing tasks are laborious, and highly prone to error, causing bottlenecks in the process as the queue grows.

 

 

 

This example is just the tip of the iceberg in the insurance industry. Workers in the insurance sector are spending more than half of their time in similar menial tasks like, updating existing policies, reviewing documents for completeness, transmitting claims for payment, etc.

 

 

 

RPA is poised to unlock a world of opportunities for insurance. McKinsey states that the industry has the potential to automate nearly 50-60% of the back-office processes by 2025. And it is to bring around 66% time-savings. Adding, the global RPA market is expected to reach around $2.4 billion by the next two years.

 

 

 

McKinsey, on taking up 16 case studies in financial services reported up to 200% improvement in ROI within the first year of implementing RPA.

 

 

Robotic Process Automation in insurance 

 

 

 

 

Aimed at easing the burden of insurers’ staff and maximizing productivity, RPA for an end-to-end automation can:

 

 

 

 

  • Integrate with workflows and rule engines
  • Auto-create monthly reports based on business logic
  • Collate data and transfer to centralized system
  • Assist customers with first-level queries
  • Enhance bot capabilities by combining with AI add-ons

 

 

Now, let’s take a look at the potential ways RPA can help the insurance industry.

 

 

 

 

Claims Processing

 

 

One of the most challenging, yet an integral part of insurance is claims processing.It involves several managerial, administrative and customer service functions. Complex legacy systems, increasing number of well-informed customers who need quick resolutions, growing fraudulent claims and the man-hours spent on detecting them are a few challenges.

 

 

 

Claim requests come through different channels, like phone calls, documents, emails, etc. The executives manually process these data, enter them into the central system, and validate against the policy administration system. These are reviewed for settlement amounts and fraud.

 

 

 

With RPA, the entire process is organized, streamlined.

 

 

 

For instance, RPA bots can be trained to collate data from different paper-based and scanned documents. When combined with AI, RPA can also detect and analyze fraud in real-time, and triage it to the appropriate channels. For example, they can route the malicious ones to special investigation teams for scrutiny.

 

 

 

UI Insights reports that claims can be processed 75% faster with RPA. Furthermore it can bring down costs on claims operations by 30%, according to McKinsey.

 

 

 

 

Customer experience

 

 

Did you know insurance companies that provide exceptional customer service generate 2 to 4 times more revenue and 30% higher profits?

 

 

 

Customer experience has become a significant differentiator and insurance is no exception. Putting customers at the forefront, ensuring they get immediate response across all channels and touchpoints is key. A modern day contact center with RPA and AI add-ons can deliver frictionless customer experience without hindering their journeys.

 

 

 

For example, to start with, deploying rule-based chatbots. RPA chatbots help your end-users with first-level responses or answer to simple yes/no questions, guide them through the available policies for choosing insurance plans and even file claims. Unlike representatives who work only for a fixed hours, these bots are available 24×7 for customers to engage whenever they want. You can integrate them across all the channels for a seamless, omnichannel experience.

 

 

 

 

Customer onboarding

 

 

Right from collecting customers’ primary details and supportive documents, performing background checks, verifying identities, and checking for fraudulence, an insurer’s executives are overwhelmed with an extensive list of manual activities.

 

 

 

RPA makes the process much easier with very minimal human intervention.With no-tedious, almost near-perfect accuracy, the time it takes for a customer onboarding could be anywhere from a couple of hours to days rather than weeks to months.

 

 

 

You can develop RPA bots on a low-code development platform for a cost-effective option and for exploring a new area of innovation.

 

 

 

 

Underwriting 

 

 

Underwriting may take 3 to 4 weeks, to analyze large amounts of data and foresee the risks. It is prone to documentation errors, consuming more man hours.

 

 

 

A robotic process automation solution helps automate around 60-80% of tasks, which include submission of applications, collating unstructured information from internal and external sites, filing them on a central repository or dashboard, evaluating risks, contract issuance and acceptance, and other low-risk and high-risk tasks. Underwriters can focus more on high-risk tasks that require decision-making and analyzing intelligence rules

 

 

 

 

Regulatory Compliance

 

 

A Thomson Reuters’ survey concluded that “one-third of the firms surveyed said they would spend an entire day each week keeping track of the changing regulations.” The speed and sheer breadth of compliance changes like tax laws, PCI standards, HIPAA privacy rules, etc. remain to pose a steady challenge for industries.

 

 

 

When deployed, RPA improves the accuracy of data. Companies can monitor regulatory compliance in real-time and automate all internal and external reports, thus mitigating the risks of non-compliance and improving audit trails.

 

 

 

 

Policy management

 

 

Insurance policy management involves generating quotes, policy renewals and cancellations,  policy reviews, policy issuance, matching policyholder’s data, data processing and validation, among other related policy maintenance activities

 

 

 

Why RPA here?

 

 

 

Consider a scenario: Robert, an insurance customer, applies for a single new policy on two different channels – phone and email. Despite having a Policy Administration system already in place,  Cathy (the representative) has to manually collect Robert’s details provided on two different channels, verify the information is accurate and without discrepancies, and then proceed with the workflow involving other concerned departments.

 

 

 

If an RPA is integrated, it can automatically gather information and input them into the Administration system, manipulate the workflow, and ensure a smoother handoff to Cathy wherever her intervention is required.

 

 

 

 

Sales 

 

 

Hard sales pitches are no longer attractive. Given the influence of consumer awareness and digital media, customers today have more options. It requires a “true” conversation for closing a deal. With RPA, representatives can get a better understanding of the customer’s background, history, and needs to set the context right. By this way RPA helps capitalize on cross-selling and up-selling opportunities and deliver more focused pitch.

 

 

 

Other sales process automation scope lies in agent onboarding, integrated call-center management solution, lead duplication, activity tracking, task reminders, lead management and more.

 

 

 

 

Final thoughts on Robotic Process Automation

 

 

In a nutshell, RPA in the insurance industry brings a host of benefits – data accuracy, faster claims processing in turn leading to higher levels of customer satisfaction, standardized processes, built-in analytics feature to track and optimize performance. Ultimately leading to greater efficiency, higher productivity, and reduced labor costs.

 

 

 

The future of automation is here. Where traditional approaches to automation falter, RPA scores! At Vuram, we help you integrate RPA into your core operations to transform the entire business ecosystem. To position your organization for a truly transformative change in today’s competitive landscape, write to ask@vuram.com

 

 

 

If you are looking to positioning your organization for a truly transformative change in today’s competitive environment.

 

 

 

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