Intelligent Automation for Insurance

The focus for the last 10 years in insurance has been around how to streamline business processes to increase efficiency and create better experiences for customers and employees. New technologies including Robotic Process Automation (RPA) have become one of the next big things, not just in this industry but across many. For insurance, promising to automate processes and customer interactions that currently require lots of human involvement, primarily due to so many applications to swivel in and out of to deal with customer and broker requests – often add little value and distract the insurer from the most important person in the journey, dealing with the customer.

Now organizations are beginning to take it a step further, coupling RPA with cognitive technologies including Machine Learning and speech recognition that can give these bots new power to learn and increase their ability to communicate intelligently. This is especially useful for those tasks that aren’t just routine, but that require judgment and perception.

These new technologies will increasingly help firms gain customer loyalty, making the mastery of these cognitive capabilities a key differentiator when competing with customer centric insurtechs.

In fact, 83% of technology professionals believe there will be a cognitive tipping point in the next five years. While the RPA market today is still relatively small, the technology is gaining traction as a cost-effective alternative to traditional systems integration and is projected to become a $5 billion market globally by 2020, with a CAGR of over 60 percent.

Platforms including Microsoft Azure and IBM Watson have made these cognitive services more readily available and easier to consume, meaning that these technologies are no longer in our future, but they are very much in the here and now.

Technology Challenges for Insurance

Companies around the world, regardless of size or industry, are constrained by business challenges. However, these obstacles are often greater for businesses, like insurance providers, that are heavily reliant on back-office processes. Some of the biggest operational challenges faced by insurance companies include:

Insurance companies regularly deal with mixed data formats, including a variety of paper files and electronic documents. This means that, in order to process an insurance claim or provide a quote to a client, employees must manually enter information from the various data sources into the company database. This process is time-consuming and costly. Even more so, this manual labor is highly prone to errors and inconsistency, which could lead to significant discrepancies in company records.

Many insurers still rely on legacy systems or multiple different systems, applications, and software to manage their business functions. When implementing new software solutions, such as ERP (enterprise resource planning) or BPM (business process management), many companies face challenges in integrating these with their existing IT setup. As a result, the integration of new software can involve the partial or entire replacement of the existing setup in addition to requiring a significant investment of time, money, and employee effort. Because of these challenges, many companies are left with old systems that no longer provide the support needed for company growth and development.

All companies, but especially insurers, are required to comply with a host of compliance standards, including, for example, tax laws, PCI standards, and HIPAA privacy rules. Updates or improvements to these regulations are common, and this often means that business processes suffer or need to be re-established in order to reflect these changes. While such laws are meant to protect business operations, company employees, and clients, compliance difficulties and non-compliance by insurance companies can result in a range of damaging financial and operational consequences.

How RPA addresses challenges in Insurance

Successful claims processing is fundamental to the profitability of insurance providers. Typically, claims processing is error-prone and time-consuming, requiring significant investment by company employees. Replacing the need to process insurance claims manually, RPA is able to reduce the amount of time that is spent on these repetitive processes and reduce, if not eliminate, human errors. This means that insurance claims can be processed in a much more efficient, accurate, expedient manner.

Because the number of active RPA software robots can be increased or decreased in a matter of seconds, scalability is easy to achieve with RPA. Software robots can be scaled up or down during certain times of the day or year, when there are a large number of claims or quotes to be processed. While such temporary scaling of RPA software robots is essential in the short term, the number of active robots can also be increased permanently in order to meet long-term growth demands.

Many insurance providers still rely on legacy systems or disparate programs, so the non-invasive nature of RPA allows the technology to be an ideal solution for companies wanting to easily streamline their business processes. RPA imitates human keystrokes and mouse clicks, interacting with the presentation layer of computer programs and applications. As a result, RPA can be implemented in addition to existing programs, without the need for insurance providers to replace their existing IT setup. RPA can also be implemented with limited support of an insurer’s IT team because it does not require users to have programming knowledge.

Compliance is an important component of the success of insurance companies. RPA ensures the accuracy of data and its software robots maintain a running log of their actions. As a result, compliance with regulations can be monitored on an ongoing basis through internal reviews. This allows insurance companies to keep an eye on compliance themselves, in addition to being better prepared in case of an external audit.

Automation Usecases for Insurance

Working across insurance value chain, Eutopia considers following as some of the primary use cases:

Channel Management & Customer Acquisition

Although Insurance Agencies and Brokers have invested…

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Claims Processing

In Insurance FNOL (First Notice of Loss) is the first…

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Cognitive Automation in Underwriting

Underwriting is the task of assessing the risks and…

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Chatbots in Insurance

There is a lot of buzz about Chatbots being…

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What can Eutopia do for you

We, at Eutopia Systems, by using some of the cutting-edge automation technologies, can automate following processes for you:

All Insurers

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Life and annuities

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General insurance / property and casualty

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