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  • Writer's pictureDeborah Cromwell

RPA in the Insurance Industry: Benefits and a Before-and-After Scenario

Updated: Jul 19, 2023


RPA Benefits for Insurance
RPA Benefits for the Insurance Industry

Operational inefficiency in any organization results in wasted spending and often translates to wasted time for customers. Manual processes contribute greatly to inefficiency and the more an organization relies on them, the more likely it will realize poor productivity, slow response times, high error rates and dissatisfied employees – all of which are sure to drive customers away!


For the reasons listed above and so many more, there are ample opportunities for RPA to integrate with existing systems and technologies to drive processes in the most efficient way and work alongside employees so that they might focus on more complex tasks.


Here are a few advantages of adopting Robotic Process Automation:

• Create immediate cost savings by automating human tasks

• Deliver 100% accuracy

• Increase staff productivity, service levels and capacity

• Reduce process cycle times

• Reduce average handling time


In the next few weeks, this blog will look at the benefits RPA can bring to the insurance, banking and telecommunications industries and we’ll outline scenarios that break down the impact of RPA before and after implementation.


 

Top 7 Benefits of RPA for the Insurance Industry


1.) Faster Claims Processing

Claims processing requires employees to gather information from various documents and copy/move that information into various systems. It’s a time-consuming process, which delays the timely response that customers desire when they file a claim. RPA can move large amounts of claims data with one mouse click.


2.) Easier Policy Cancellation

The process of cancelling policies is time-consuming due to having to interact with email, a policy administration system, a CRM, Excel, and PDF documents. RPA can toggle through these interactions all at once and eliminate the need to move data through each of them manually.


3.) Simplified New Business Onboarding

Sometimes companies grow faster than they can manage. Robots can support growth with minimal growing pains. For example, manual inter-departmental data movement from new clients being onboarded can be reduced by at least 50% within weeks.


4.) Increased Data Accuracy

Using RPA increases the reliability of data. That’s because, unlike humans, robots are unable to key in data incorrectly; nor will their “minds” wander while performing repetitive tasks. You must resolve bad data being received on the front end for it to work right.


5.) Standardized Processes

A side effect of using robots is the necessary standardization of processes. In order to start using a robot, a company’s processes need to be standardized, which in turn, increases worker efficiency and then greatly increases the speed at which the robots can do their work as well.


6.) Legacy Systems Compatibility and New Implementation-Friendly Systems

Robots can be configured to use old systems that might be replaced in the next few years and updated to work with the new ones. Robots are easily reconfigured within days to point to new systems as they get implemented.


7.) Easy Transition

Working at the familiar desktop level, robots are easy for employees to understand and to use. They can be installed quickly (unlike traditional IT projects) and work with existing technology.


Given this new frontier and their legacy ways of doing business, most insurance companies struggle to find places to get started with RPA. Many experts recommend starting with simple processes first. Attempting to conquer complex processes first often leads to delays, frustrations and failure. Choosing a lower complexity task allows you to gain a foothold and establish ownership of the internal process and practices and then evolve future automation.


 

6 Examples of RPA for Insurance


1.) Underwriting

At one company, underwriting processing time was slashed by 80 percent thanks to the elimination of manual copying and pasting of client information from inbound customer emails into one cloud-based underwriting system and two on-premise core insurance systems.


2.) Quoting

One insurance company used RPA to turbocharge policy quoting speed by automatically copying contact data from requests on the company website and validating it on government websites such as the DMV and third-party databases.


3.) Property & Casualty Claims Analytics & Reporting

Another insurer increased the speed of its analytics insights by automatically moving automotive claims transaction volume data into its business intelligence application without human wrangling or intervention.