Robotic process automation is being used in the insurance industry not to eliminate human jobs, but to reduce manual labor, enabling employees to focus on other projects that require the personal touch and enhance the customer experience. But there are opportunities for expansion in other areas. Using RPA as a tool to automate repetitive tasks via the deployment of bots that mimic human actions can help eliminate paperwork errors for claims processing and data collection/processing. Cloud-based RPA software can create a digital execution log trail that can be accessed for compliance audits. Also, it can be tasked with generating e-mails or other correspondence that needs to reach the appropriate parties. Policies can be renewed without the need for human interaction, again freeing up agents and other insurance company employees.
Like other widespread corporate initiatives, utilizing RPA in the insurance industry needs to start from the top and become pervasive throughout every department. When this mandate becomes a reality, the IT department can take the lead and work toward customizing a software package that is not piecemeal but comprehensive in order to achieve the organization’s growth goals. The outcome is higher productivity for employees, more transaction and data collection accuracy and reduced operational costs.
In addition to text, RPA has a visual aspect. Using programmed algorithms, it can inspect photographs sent in by customers after an accident, estimating what that fender bender might cost to repair and inspecting for telltale signs of fraud via predictive analysis. A digital inspection of that image may detect that which the human eye cannot process—a definite benefit for the P&C sector.
Blending RPA and AI
RPA that employs AI and the use of bots can help an insurer stay on track when it comes to compliance issues. In addition, it can structure data that is processed and stored, making it easier to access, search and collate reports. More widespread use of RPA in the insurance industry for back-end processes could lead to a standardization of practices. That may also mean less expensive, “off the rack” bots can be employed, with more companies speaking similar languages.
For some, the term “bots” may have a negative connotation, but the use of software that can program bots to perform rule-based routine tasks is common. When moving to RPA, start with automating the least complex rule-based tasks. Transaction and reporting accuracy is the primary goal. Once the simple processing routines are being performed flawlessly, the bots can be programmed to tackle more complex tasks, learning as they go via AI.
Deploying RPA can be accomplished via Robot as a Service (RaaS), a cloud-based computing unit that facilitates the seamless integration of robot and embedded devices (like bots) into web and cloud computing environments. Its similar to SaaS (Software as a Service), where a third-party provider hosts applications that customers can access via the Internet. SaaS can be purchased on a subscription service, as can RaaS, making it more of a modified turnkey transaction than starting to automate from the ground floor.
One study estimates that by 2025 perhaps 25 percent of insurance providers will be using RPA for back-end tasks that once required more human interaction. The insurance firms that have embraced RPA to date are seeing the results: fewer errors, enhanced digital trail logs for compliance reviews, lower costs and enhanced productivity levels from employees able to focus on less mundane tasks. That is the competitive advantage provided by RPA, moving ahead faster, more efficiently and with a higher level of output. That can even lead to a slowing in premium hikes from reduced overhead—another plus in a very competitive industry. The question: is it time for your insurance firm to get on board?
