RPA Automating Insurance Industry- The Use Cases

September 29, 2023

Mohammed Umar

RPA Automating Insurance Industry- The Use Cases

Welcome to the world of insurance, where mountains of data are as common as a pun in a dad joke. And where there’s data, there are bound to be errors because, well, we’re only human. Insurance is all about data entry, validation, underwriting, and compliance – processes that are repetitious and time-consuming. But when mundane tasks start resembling a never-ending Groundhog Day, it’s time to call in the tech cavalry.

That’s where Robotic Process Automation (RPA) comes in.

RPA: The Hero in Our Insurance Saga

RPA is the Robin Hood of your insurance agencies, stealing time from mundane tasks and giving it back to you for more exciting adventures (or coffee breaks, we won’t judge). From welcoming new customers to navigating the labyrinthine insurance processes, RPA can automate and turbocharge efficiency in various domains.

In fact, according to a McKinsey study, by 2025, 25% of the insurance industry will be automated, and bots will be running the show. Sounds intriguing, right?

Automation: More Than Just a Buzzword 

The insurance world isn’t merely dipping its toes into the automation pool; it’s doing cannonballs. In recent years, insurance agencies have pivoted their workflows around automation, transforming underwriting, compliance, policy management, and even fraud detection. Brace yourselves; 80% of insurance processes might soon be automated. 

Now, let’s talk savings. RPA isn’t just your average dime-store calculator; it’s a money-saving maestro. The bots can save thousands of dollars of productive time just by doing it faster and more accurately. McKinsey estimates that RPA can rescue a whopping 34% of employee time just from data processing alone. That’s more time for employees to invest in more important work. 

OCR and RPA: The Dynamic Duo

Imagine a super duo where one’s a stickler for accuracy and the other’s lightning fast. That’s Optical Character Recognition (OCR) and RPA. Together, they’ve kicked human error to the curb, ensuring data flows seamlessly into the workflow.

In one incredible case, an insurance agency slashed its onboarding costs by 91% and sped up processing times by a jaw-dropping 600% (McKinsey). That’s like going from a tortoise to a cheetah in the business world! 

RPA's Superpowers: Unveiled!

Now, let’s zoom in on the specific insurance processes that RPA can turbocharge. 

 Claims Registration
Picture this: insurance claims processing, the heavyweight champion of time-consuming, document-intensive tasks. The insurance agency has to collect all the evident documents regarding the claim before approving it and has several levels of review and investigation to identify fraudulent claims. It’s like a detective novel with hundreds of pages, but the RPA detective can solve it in half the time. Automated claims processing can cut processing time by 50% and manual work by a whopping 80% (WorkFusion). The faster the claim’s resolved, the happier the customer. 

Underwriting, the Sherlock Holmes of insurance, involves sifting through mounds of data regarding the customer’s background, helping with pricing the insurance based on the risk involved. On average, it takes weeks, but with RPA, it’s like having a turbocharged Sherlock. RPA bots collect data from everywhere, analyze claim histories, and present it all on a dashboard — quick and error-free.  

Policy Renewal
Policy renewal is a paperwork jungle. Manual policy processing and validation are prone to errors, and even missing a single asset during renewal can cost a fortune. But with the help of RPA, this process becomes a breeze. RPA streamlines the entire process, making it not only efficient but also cost-effective, saving insurance agencies valuable time and resources. 

Account Setup
Setting up CSR24 accounts has traditionally been a labor-intensive process for the Applied Epic system using insurance agencies. It often involves navigating through complex systems, entering data manually, and coordinating multiple steps. But now, with RPA in place, this once intricate process is trouble-free. RPA takes charge, automating the setup process, from initial data entry to system integration. RPA ensures that agencies can efficiently establish and manage accounts, all while minimizing the risk of data entry errors. 

Notice of Cancellation
Sending out notice of cancellation is a common headache for insurance agencies and brokers. The traditional process involves delving through stacks of notices, manually validating them and pushing out emails to the policyholders. This often leads to costly errors or delays. However, with RPA, this process becomes effortless. RPA automates the entire process and flushes out the chances of validation errors or delays. Automation not only saves insurance companies valuable time, but also reduces the risk of missing critical deadlines and inaccuracies.  

Document Retrieval
Implementing RPA (Robotic Process Automation) bots to automate the document retrieval process in insurance agencies can bring substantial benefits. RPA bots can fetch documents from carrier websites or email attachments and do the necessary conversions and upload them back into insurance agencies management systems like Applied Epic, AMS360 etc. This eliminates the need for employees to manually search for and retrieve documents, saving time and reducing human errors. 

Direct Bill Commission Statement Reconciliation
RPA bots can be programmed to extract commission statements from insurance carriers and match commission data from statements with corresponding policies in the insurance agency management systems like Applied Epic, AMS360, etc. They can reconcile statements, validate commissions, and flag discrepancies for human review when necessary. The bots can be scaled to handle any magnitude of commission statements and significantly reduce the risk of human errors, leading to more accurate financial records. 

Regulatory Compliance
Insurance is one of the most rule-bound industries out there. These standards change from time to time, and so manual control over these standards could be a risk. In addition, any errors or regulatory breaches could cost the business and the RPA automates the process, minimizes human error, and maintains a tight audit trail. The bot starts with a name screening, does all the compliance checking, and maintains a complete log of changes. These log files can be used to run reviews to ensure the process is audited tight and abides by all the regulatory compliance standards.

Insuring a Bright Future with RPA 

In a Deloitte survey, they found that the return on investment for RPA initiatives is less than 12 months. RPA has already revolutionized the insurance world, and with AI and ML joining the party, hyper-automation is making insurance processes smarter and snazzier than ever. So, what are you waiting for? Get started and let the bots do the heavy lifting while you sip your coffee in peace!

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