Top 5 Reasons You Should Implement RPA in Insurance

Top 10 Use Cases of RPA in Insurance Industry

1. 1 Underwriting

   Underwriting and associated processes are among the most popular RPA use cases in insurance. RPA in life insurance can streamline lengthy processes of assessing and analyzing risks associated with insuring people and their property. Automating a range of processes accelerates decision-making and allows underwriters to allocate time to more complex tasks. 

   By leveraging ML, RPA and AI in insurance, the software can perform various tasks: 

   • Gather and access data from internal and external sources; 
   • Fill in the required data fields in the internal system; 
   • Analyze customer and asset background; 
   • Identify risky and fraudulent cases; 
   • Estimate losses, etc.

2. 2 Claims Processing

   Claims processing is a time-consuming and detail-oriented process involving a large amount of paperwork. It also requires excessive manual labor to gather data in various formats across channels and process claims promptly. RPA in insurance may simplify the following tasks: 

   • Data entry and retrieval; 
   • Claims verification; 
   • Error tracking; 
   • Identification and validation of fraudulent claims, etc. 

   Using RPA helps businesses accelerate data collection and retrieval and ensure timely payments. Automation software maintains a customer-centered approach and improves overall customer experience. 

3. 3 Analytics

   Insurance companies seeking  to streamline operations and enhance customer experience turn to process and business analytics. RPA can help track transactions, measure performance, and find areas for improvement, while manual labor and paper-based processes can hinder the analysis.  

   The RPA system keeps a record of all the transactions and operations, facilitating process analytics and enhancing business efficiency. This approach also speeds up customer response and claims processing time and optimizes operations. 

4. 4 Usage of Legacy Applications

   Numerous insurance companies still use legacy applications in their everyday business processes. Such systems usually don’t communicate well with each other and are hard to integrate with newer BPM or ERP systems.  

   RPA software can act as a bridge connecting disparate legacy applications and new solutions through AI-based automation. RPA easily fits into the current workflow, complies with existing systems, and makes processes run more smoothly. The implementation streamlines processes, improves back-office efficiency, and, as a result, enhances customer experience. 

5. 5 Policy Administration

   Policy administration encompasses bidding, quoting, rating, issuing, endorsing, and renewing policies. Multiple time-consuming processes can be an obstacle for scaling, especially considering the growing customer base.  

   RPA in the insurance sector can help optimize administrative and transactional tasks, such as accounting and tax settlements, credit control, regulatory compliance, risk capture, etc. Automation software significantly saves businesses time and money in the policy administration process. 

6. 6 Regulatory Compliance

   The insurance industry is subject to thorough monitoring by regulatory authorities. Considering the large number of manual processes involved, insurance companies risk facing human errors and regulatory breaches. However, RPA systems automate data management processes, ensuring data accuracy and reliability. RPA can streamline various processes, including: 

   • Generating compliance reports and compliance checking; 
   • Researching and validating customer data; 
   • Sending notifications about account closure processing; 
   • Data security operations. 

7. 7 Query Resolution

   Insurance companies receive endless customer inquiries that have to be quickly resolved. Timely and helpful resolution can be achieved with the help of RPA. These bots can interpret incoming calls and emails using a predetermined set of rules and natural language processing technology.  

   The system can address basic queries based on the predefined answers to frequently asked questions without human intervention. If the query is more complex, the bot forwards it to one of the employees. 

8. 8 Finance and Accounts

   Insurance workers face such tasks daily as processing invoices and managing payroll and other financial transactions. Given the large amount of data they deal with, errors and inaccuracies can occur.  

   RPA software can eliminate manual labor by auto-filling templates, pressing buttons, copy-pasting data, filling in fields, etc. Insurance companies reduce transactional expenses and policy costs through automation of bank reconciliations. 

9. 9 Sales and Distribution

   Manual processes connected with sales and distribution are costly, error-prone, and require a high level of maintenance. They are also time-consuming, as insurance workers have to obtain a quotation from several insurance carriers.  

   RPA can streamline everyday processes, like conducting legal, credit, and compliance checks, creating sales scorecards and funnel reports, and sending notifications to insurance agents. Using RPA for sales and distribution purposes helps achieve client satisfaction through timely delivery. 

10. 10 Policy Cancellation

    Manual policy cancellation is a lengthy process involving calculating cancellation and inception dates, checking policy terms, and more. Insurers need to interact with various tools, such as email, a policy administration system, CRM, Excel, etc. RPA can quickly switch between the programs and complete all the necessary tasks within seconds.