Robotic Process Automation in the Insurance Industry
Robotic Process Automation (RPA) is at the peak of inflated expectation cycle, says Gartner. They estimate by 2022, 85% of large and very large organizations would have deployed some form of RPA solutions to automate their business. Overall, the global Robotic Process Automation software spend is expected to reach $2.4 billion in 2022.
Robotic Process Automation today is mainstream with increasing adoption across industries. More so in Insurance Industry, where technology advancement has been moving at a snails’ pace. McKinsey research suggests that, there is already a potential to automate 50-70% of current tasks that constitute 60% of today’s job.
For example, Insurance Industry workers spend more than half of their time in collecting and processing data on any given day; tasks that are ideal for automation using Robotic Process Automation. Early adopters are witnessing immense efficiency and productivity gains across the spectrum of processes – claims processing, new business & underwriting, process analytics, regulatory compliance, etc.
Most of the Insurance executives we talk to consider Robotic Process Automation (RPA) as a blessing in disguise. They are often caught up with managing day-to-day operations to address pressing business needs. Subsequently, they loseL sight of critical technology transition required to tackle rising expectations of modern, digital savvy customers.
Robotic Process Automation offers the possibility to ‘jump a generation’ in technology advancement, empowering companies with up-to-date market capabilities. The benefits range from the optimization of operations, cost reduction, improved customer experience, and much more. Here is an illustration of top reasons why companies adopt RPA:
Until a few years ago, RPA was still in its nascent stage. The focus then was to automate mundane day-to-day operations, like data entry, automated reminders, workflow automation, etc. Banking and Financial Services industry saw tremendous traction, given their massive back-office investments in Call Center, Support and Back-office Services. The transformational effect of Robotic Process Automation on these processes were significant.
RPA with AI now provides Insurance companies with new capabilities to automate complex tasks, which earlier required mandatory human intervention. A PWC survey ‘21st CEO’, highlights that Insurance companies are starting to recognize RPA and AI as forces of disruption and innovation, and making rapid strides to realign their strategies to accommodate RPA together with AI.
Garnering wattage, an ecosystem of Robotic Process Automation (RPA) related services seems to have matured. Take for instance, the OCR tech has been in existence since the 1990s, helping companies extract structured information from scanned copies. RPA plugged with OCR and AI expands the scope of automation by providing new capability to understand, interpret, and trigger actions – all by themselves without any human intervention.Here is a case study that shows how Abbyy OCR readers in combination with UiPath’s solution can accurately extract specific information from unstructured scanned documents – e.g., Claims details from various form format.
The mindset of RPA as a tool for increasing productivity and cost saving is beginning to change. Insurance companies are now considering Robotic Process Automation as an integral part of their long-term strategy, such as driving personalization, improving service levels, and ensuring a higher degree of self-service.
Cognitive RPA with AI clearly seems to be the future. Insurance companies are now rushing in to reap the benefits. AI integration and related technologies are stable today, accuracy is also improving with time.
As a ground rule, we emphasize on measurable ROI, while implementing Robotic Process Automation (RPA) solutions. One of our large customers, a leading US Insurance Industry major, was growing so rapidly that it resulted in processes with duplication of activities, inefficient work distribution, and slackening governance. Workflow automation using UiPath’s solution fixed the gap, resulting in $5 million savings over 3 years.
Claims processing is another area where one can reap rich dividends combining RPA with AI. Our experience shows that automated document processing and information extraction from Claims Forms can reduce the average processing time by up to 70%.
While the interest is high on implementing Robotic Process Automation (RPA)and AI among Insurance Industry executives, they struggle to identify the right use cases. Automation assessment is a good starting point that provides a birds-eye view of potential automation areas and helps define the automation roadmap.
The approach one should take in implementing RPA is relative. While a big bang transformation seems attractive, a staggered approach, starting small with selected processes, is what most of our customers prefer.
That is exactly what we intend to do with our Robotic Process Automation (RPA) strategy for Insurance Industry. Imaginea in partnership with UiPath offers a unique RPA Fast Track strategy for Insurance companies. Here is how it works:
The promise is to implement RPA for one of your processes in just 12 weeks. This includes automation assessment, building proof of concept, followed by RPA implementation.
A well planned and executed Robotic Process Automation (RPA) implementation can yield payback within a few weeks. On an average, our implementations have led to about 50% improvement in efficiency and productivity gains, with 40-60% savings in operational cost. Of course, these numbers might vary based on your specific needs.
For the bigger picture, get in touch with us; we promise a no holds bar, freewheeling conversation.
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