It has been established that the workforce in the insurance industry is, to a great extent, burdened with mundane and repetitive tasks. Most of the time, the skills and time of this workforce are hardly invested in more productive and efficient capacities.

Daily undertakings such as claims processing, personal and insurance onboarding, and policyholder services are some of the many important but repetitive tasks influencing the insurance industry. These tasks have had an overall influence on the industry’s efficiency affecting business conversion, profitability, and customer satisfaction.

However, the solution to solving these repetitive tasks handled by the human workforce is the introduction of Robotic Process Automation (RPA) in the insurance sector. RPA can help perform repetitive tasks more efficiently, accurately, and tirelessly than humans. This results in the human workforce having enough time to focus on tasks that need human interventions, such as emotional intelligence, reasoning, and judgment.

The RPA can assist insurers in the insurance space to build a high-growth responsive business at a cost-effective rate. Thus, more value is created in the insurance industry.

Discover more RPA opportunities for other industries, e.g., automation in e-commerce.

What is Robotic Process Automation (RPA)

Robotic process automation (RPA) is a software algorithm program set up to design, deploy, and oversee software robots or bots that can mimic, learn and perform rules-based business functions.

The use of RPA to solve various challenges in the insurance sector

Insurance companies all over the world, irrespective of their size, face various challenges in the course of managing their businesses. However, insurance companies heavily dependent on back-office operations mostly suffer the impact of these challenges. Challenges faced by these insurance companies include;

What challenges do insurance companies face
  • Manual data entry processes are time-consuming and expensive. Manual processes are also liable to human errors leading to a major record discrepancy.
  • The need to constantly realign with ever-changing regulations which are usually difficult. Non-compliance often leads to severe operational and financial outcomes.
  • Difficult in incorporating systems with existing ones when implementing new BPM and ERP solutions. Even with complete integration, the legal system available to insurance companies can no longer support growth.

How RPA Solves Problems In The Insurance Sector

Robotic process automation (RPA) in the insurance sector can be of help in so many areas, and these include;

Simplifying Claims Processing

The processing of claims is vital to the profitability of insurance companies. But, many of these insurance providers manually process insurance claims which are usually time-consuming and error-prone. However, by integrating RPA into the insurance sector, claims and document processing are accurate and efficient, eliminating human errors to the barest minimum.

Scalability

Integrating RPA in the insurance sector makes scalability simple, as it is feasible to decrease or increase the number of active RPA robots. Depending on the workload of an insurance firm, RPA robots can be scaled up or down. This scaling, whether temporal or permanent, is essential to meet insurance companies’ long-term goals and objectives, fostering growth in the process.

Non-intrusive Compatibility

A lot of insurance companies still depend on disparate applications or legacy systems. But with the non-intrusive disposition of the RPA, business operations can be streamlined. RPA is known to emulate human mouse clicks and keystrokes, communicating with the exhibition layer of computer applications and programs.

To this end, RPA can be implemented to synchronize with existing programs without requiring insurance companies to replace the present IT setup. This implementation also can be done with little or no support from the IT department since no programming knowledge is needed to carry out the task.

Legislation Compliant

Compliance with standard regulations is vital to the success of insurance providers. RPA ensures that all data logins are valid and precise while maintaining running logs of all activities. Hence, insurance providers can monitor their compliance with various regulations based on their internal reviews. RPA allows insurance providers to get prepaid for internal and external audits in the face of ever-changing regulatory compliance.

RPA Use-cases In The Insurance Industry

There are several real-life