Application of Business Automation in Insurance Industry

Application of Business Automation in Insurance Industry

RPA (Robotic Process Automation) can accomplish repetitive tasks more quickly, tirelessly and more accurately than humans. This, in turn, frees them up to focus on those tasks that require human strengths such as reasoning, judgment, and emotional intelligence, thus creating more value for their organizations.


1.        Application of automation insurance


Claims Registration and Processing

Claims processing requires companies to gather a vast amount of information from several sources, creating exhaustive quantities of data. With the steady increase in the number of clients, it becomes even more necessary to use RPA for claims processing. Automation ensures more appropriate handling of clients’ claims, and this improves your company’s reputation.


Typically, claim processing takes several days as insurance agents have to gather and check data from multiple sources. It may take even more time due to human errors, like mismatched financial data or customer details. Such delays may result in the loss of customers and other financial and reputational damage to the company.


RPA in Insurance makes it possible to integrate all the different claim processing information from multiple sources. Robotic Process Automation has a myriad of business benefits, however, within the context of insurance industry, it can automate the manually intensive processes like extraction of data, complex error tracking, claim verification, integration of claim relevant data sources and more; consequently speeding up the process and creating a better customer experience.


Process and Business Analytics

Insurance companies can improve and serve customers better only if they can measure what they are doing. The vast number of operational and paper-intensive processes make it difficult to track and measure operational efficiency or identify areas of improvement.


With automation processes in place, the tasks performed by software robots can be tracked easily, without involving manual efforts. It allows your staff to have direct access to information-loaded details, such as processed transactions or encountered exceptions. This means significantly less workload on the employees’ shoulders, which allows them to focus more on the clients and better address their needs.


Underwriting and pricing

A thorough, comprehensive risk assessment requires data collection and analysis from a variety of sources, which can take up to three weeks of painstaking effort. Robotic Process Automation automates the process of data collection from various external and internal sites, thus considerably reducing the time taken for underwriting. It can also be used to populate multiple fields in the internal systems with relevant information and produce a report or make recommendations while assessing the loss of runs, thus automating the process which forms the basis for underwriting and pricing of products.



The insurance sector faces strict guidelines for documenting work and creating audit trails. Regulatory scrutiny of the insurance space has never been more acute than it is today. With a multitude of tedious and error-prone processes in insurance, the risk of a regulatory breach increases multifold.


Intelligent automation in insurance is the key to helping companies improve compliance because this eliminates the need for human personnel to manually go through a legion of routine operations to ensure regulatory compliance.


2.        Benefits of automation in insurance


Streamlined data processes

Every day, insurance firms need to handle large amounts of data. For example, to process a claim or provide policy advice, an agent must gather data from multiple sources and enter it into a database. Repetition of the same routine tasks over and over again hinders human concentration, resulting in errors and creating serious inconsistencies in company records. AI-driven RPA bots can process such tasks with speed, scale and accuracy.


Increased employee satisfaction

When you automate the claims process, you also reduce the workload for your employees. How will that affect them? They’ll experience less stress and will feel that they have more time to do the work that they love to do: investigating fraudulent claims. Before you know it, you’ll see genuine happy faces on Monday morning.


Fewer operational costs

When you don’t have to manually assess every single claim that comes in, and when the fraudulent claims are handled faster, you could downsize your claims department. When you downsize, you have less salary and benefits costs. And, if you have a lot of vacancies right now, you won’t need that extra staff when you chose to automate the claims process. That will save you costs related to recruiting and educating new staff.


3.        Opportunities in the Insurance Industry


The insurance market has become competitive and more robust over the last few years with the coming of the online P2P insurers; technology, and InsurTech players.


Far-sighted insurers acknowledge the looming competition from companies such as Amazon, Google, and Facebook, which can leverage their users’ pool of data to provide customized insurance products. Amazon has already taken in a leap in this area by hiring insurance professionals and is set to transform the insurance market in several European countries.


While digitization in the insurance sector is set to create opportunities, it will also present newer challenges for traditional players. With low-interest rate scenarios, the revenue streams of legacy insurance companies are quickly drying up, as investing customers’ premiums in several financial institutions are not paying the same returns when compared to the last few years. In the future, these challenges may increase, owing to the fast pace of digitization and changing customer preferences.


4.        Future of Automation in the Insurance Industry


According to a survey Accenture, as of today, 74% of customers would like to interact with modern technology and appreciate the computer-generated system of insurance advice. Companies who have been early to adopt automation of some aspects of their claims process can experience a significant fall in processing time and cost, and a good increase in service quality.


The use of automation in the insurance industry has had a positive impact on customer experience and satisfaction. With cognitive automation in the insurance sector becoming more and more sophisticated, it will provide a cost-effective way to meet rapidly changing regulatory requirements and help businesses concentrate on strategic long-term issues. Artificial intelligence-enabled assistance can lower the documentation time by as much as 80%, thereby making insurance companies more profitable.


Talking about early adopters, Allstate Business Insurance has also recently developed ABIe in partnership with EIS. ABIe is an AI-based virtual assistant application designed to cater to Allstate insurance agents looking for information on ABI’s commercial insurance products. Hopefully, as time goes by, we will get to hear more such breakthroughs of AI investments in insurance companies.