Top 9 Benefits of Robotic Process Automation In Insurance
Robotic Process Automation (RPA) leverages intelligent business guidelines to automate monotonous and predictable tasks such as sales, underwriting, policy issuance, policy servicing, and claims processing. As reported by Forrester Research, spending on RPA tools will exceed $1 billion in 2019 and up to $1.5 billion by 2020. Smart automation can help insurance companies manage policy inquiries, accelerate application processes, and enhance their customer service across all digital channels by allowing employees to focus on the more complex, value-added services. RPA has become the go-to technology for insurance companies looking to automate mundane processes like data entry. Insurance giant, Anthem, has implemented more than 130 RPA ‘bots’ to manage the company's data center infrastructure.
RPA can accomplish repetitive tasks more quickly, around-the-clock, and more accurately than humans by automating the end-to-end process lifecycle by integrating new front end technologies with back-office environments. According to a report from Capgemini, businesses have seen an average increase of 50% in productivity where insurers apply RPA. Also mentioned in the same report is an 80% reduction in turnaround time for service delivery. Some of the key benefits of using this technology include higher ROI, smarter underwriting, increased productivity, increased data accuracy, easier policy cancellation, and faster claims processing.
Smarter Underwriting- RPA can automate the data gathering process resulting in enhanced accuracy and productivity. By implementing this, you could free up 20 to 30 percent of your capacity according to a report by Accenture.
Improved Customer Experience- RPA is especially beneficial when it comes to this aspect since it can relieve employees from the burden of predictable, high-volume tasks such as claims processing and repetitive data entry processes.
Data Integration & Compliance- Employees can proactively recognize and manage compliance issues and consistently run internal reviews, allowing the implementation of RPA in addition to existing programs, without the need for insurance providers to replace their existing IT setup.
Better Management Capabilities- RPA allows enterprises to achieve improved governance by embedding specific requirements within automation rules.
Increased Accuracy- By reducing human intervention, insurance companies can now increase their processing accuracy by up to 98%.
Integrate With Legacy Systems - RPA can help new ERP or BPM merge quickly with legacy systems, as well as help integrate technologies like image classification and text analytics.
Form Registration- RPA can improve the time required for the form registration process by 40% and with half the number of staff.
Claims Registration & Processing- RPA offers immediate and substantial ROI in claims processing. According to Kellton Tech, RPA solutions can reduce claims registration times in half. In a case study done by Genpact, the client, an established insurance company has improved accuracy and helped cut FNOL handling time in half by speeding up the claims process, and projects a 250% ROI in the first year itself.
Virtual Innovation- Chatbots are one area of innovation that is driving and changing engagement for digital experiences. Insurers are adding virtual customer service tools like GEICO's Kate, a virtual assistant for its mobile app while Liberty Mutual, and Progressive recently launched voice-enabled apps. Allstate is using its virtual assistant, ABIe, to help agents quote and issue commercial insurance products.