The conventional property & casualty insurance business model has been resistant to change. The increase in technology might have postponed changes, but now we are at a convergence that requires insurers shift to digital. There has been long term reliance on multiple internal systems and solutions built over time, but it’s now time to look to automation to drive straight-through-processing. You want to avoid replacing entire systems or re-engineering processes— not to mention disrupting business. Transforming business operations with automation technology, you’ll see near-term cost and productivity benefits as well as long-term strategic advantages. Although it seems difficult to know where to start, there’s a good reason for taking action sooner, not later.

Customer Demand Pushing P&C Insurers to Automate

Customer demand spurs technology innovation and insurers are now realising to stay in business, they must shift to deliver better customer experience. And automation is the way to deliver better product and services to customers at a lower cost, without adding headcount. But this includes a shift in the current business model, where change is met with reluctancy.  For smart insurance organisations, they see automation as a way to lower expenses and drive higher growth.

Risk Avoidance now Replaces Risk Mitigation

Technology shifted P&C insurers from risk avoidance to risk mitigation. In the past decade alone, advances in the auto industry such as automatic braking to avoid a front-end collision and rear cameras that signal the driver if they are too close to another car or if there’s a visual obstruction, avoids accidents. Another risk avoidance example is rewarding drivers who drive fewer miles, don’t receive citations or get into accidents.  These advances reduce the number of claims each year, so insurers must develop new products to incentivise customers to purchase from them. 

For property insurance, the shift to risk mitigation has happened. From a product like Nest, that can alert you when there’s an increase of carbon dioxide, prevents injury.  A Ring doorbell will notify you on your mobile device when there’s a package is delivered (reducing theft) or a person at your doorstep, (improving personal safety).

Leveraging Data from Automation 

These technological and automation advancements provide insurance organisations with new data streams. A lot of new data streams . These need to not only be managed but also determined for best utilisation , to improve customer experience and provide revenue opportunities.

Best Insurance Automation Opportunities Using Robotic Process Automation

From the reduction or elimination of paper, reducing errors and improving efficiency RPA can shift insurance organisations into a digital-first mindset.

  • Manual Data Entry: Robots can quickly and accurately populate forms or databases with business data. Employees are relieved of the mind-numbing data entry tasks that are a drain on an insurance organisation. RPA rests on top of legacy applications and systems, so deploying a use case of removing manual data entry is a good starting point.

  • Compliance: Since RPA is based on user-defined business rules, it’s ideal for heavily regulated industries like property & casualty that must adhere to strict guidelines. Whether its new tax laws, GDPR or HIPPA requirements, robotic process automation helps to maintain insurance compliance and provide an audit trail.

  • Process Improvement: To improve processes, insurers must be able to evaluate and review processes. Processes that utilise Robotic Process Automation include the steps in the task or process, such as exception handling, transaction details or errors.

  • New Business & Underwriting: Collecting data for underwriting is a laborious effort for insurers and robotic process automation robots can be directed to pull data from different sources, whether internal or external to speed up the underwriting process. RPA can also be used to auto-populate forms or multiple fields.

  • Claims Processing: Similar to underwriting, claims processing also requires data gathering from internal and external sources is far more productive using RPA. Automating claims processing can reduce the amount of manual work by up to 80%.

  • New Account Opening: Typically, onboarding is a time and effort-intensive process for new policyholders and insurers. Robotic Process Automation can search public databases and auto-populate forms for customers.

  • Policyholder Communications: Robotic Process Automation can notify customers of important information, such as policy renewal, preventative maintenance and repair.

Additional benefits of RPA include:

  • Digital Workforce Management: Depending on your business needs, you can have RPA assigned to accounting by processing invoices in the morning, and in the afternoon, these same BOTs can tackle claims processing. This means your BOTs are never idle.

  • Failover: BOT downtime is one of the biggest challenges. The answer lies in the creation of smarter BOTs that know how to deal with unknown exceptions, which are managed by a Cognitive Response Framework and Business Continuity Planning (BCP) failover. BOTs are intelligent enough to start again. Auto failover also ensures self-recovery from infrastructure failures, ensuring Business Continuity Planning.

  • Easy to build and deploy: With little or no coding required, business users can set up RPA, reducing testing and implementation time.

Business Benefits for P&C Insurance Organisations

  • Cost reduction: RPA digital workers cost less than an FTE and don’t require complex coding for implementation, resulting in faster deployment in days not months.

  • Improve employee morale: Since the manual, tedious work is handled with RPA, your employees can focus on higher-value work.

  • Boost productivity: BOTs are capable of working 24/7, without errors and output more work in less time

Ensuring Your Digital Future Success

RPA can ensure digital transformation and efficiency across your insurance organisation. You can scale your automation operations and manage, measure and maximise the productivity of your digital workforce intelligently, and in real-time. RPA enables your organisation to truly realise the benefits and potential of automation. It frees employees to work on other value-add work, while at the same time not compromising on the outcomes of automated tasks.

Interested in taking out RPA for test drive? Download your free trial of QueenBOT RPA today.

McKinsey, Digital Disruption in Insurance, 2017
Comtec Information Systems, 10 Use Cases for RPA in Insurance Industry, April 2020