RPA in Insurance: Why Automation Is Inevitable and How to Introduce It

Denis Astapchenia

Denis Astapchenia

Director of Financial Technologies

Financial Services
Nov 3, 2021
4 minutes to read
  1. Why insurance needs Robotic Process Automation
  2. Benefits of Robotic Process Automation in insurance
  3. Robotic Process Automation use cases in insurance
  4. Claims processing
  5. Underwriting
  6. Keeping insurance contracts
  7. Accounting
  8. Ensuring client satisfaction
  9. Robotic Process Automation implementation process in the insurance industry
  10. Determine which procedures to automate
  11. Draw up an automation plan
  12. Develop and test the software
  13. Implement the solution
  14. Conclusion

Today, industry leaders increasingly make use of cutting-edge technologies ensuring clients using their services enjoy an outstanding digital experience. Robotic Process Automation in insurance is found among the key technologies that streamline companies’ operations, boost ROI, and facilitate digital transformation.

RPA in insurance means the use of software robots to automate routine industry-specific tasks. Any repetitive processes such as customer onboarding, submission of claims, insurance payout calculation, and so on are prime candidates for automation.

Below are some compelling statistics proving the increasing popularity of employing RPA in insurance:

Emerging technology deployment rates among insurers

In this piece, Andersen’s FinTech experts will share how RPA helps companies excel in the insurance market by streamlining their processes and boosting performance.

Why insurance needs Robotic Process Automation

RPA in financial services, e.g. banks, financial companies, and insurance agencies accounts for 29% of tasks. Insurers are increasingly turning to process automation for the following reasons:

  • Overall tech evolvement. Today’s clients expect to employ finance services instantly and across their preferred channels. Software with RPA allows for the seamless collection, synchronization, and processing of siloed data scattered across various apps.

  • Prevalence of legacy systems. RPA for insurance companies is easily integrated with legacy finance software which makes it possible for institutions to adhere to best digital practices without giving up their longstanding industry experience and procedures.

  • Increased complication of industry regulations. The finance industry is known for its strict adherence to government regulations as its operations involve handling clients’ sensitive financial and personal data. Not only do these data privacy laws and tax and licensing rules change over time, but they also alter from state to state and from country to country. RPA implementation in insurance allows businesses to stay truly global by promptly assessing risks and effectively operating in different locations without putting themselves and their clients at risk.

  • The ever-increasing complexity of financial ecosystems and companies’ need for expansion. As the volume of client data grows, insurers are aspiring to shift the burden of time-consuming work onto virtual assistants. The benefits of RPA in insurance include simplifying and streamlining complex financial processes so that consultants and managers can devote themselves to more important strategic tasks while automation allows for companies’ growth and increased profitability.

Benefits of Robotic Process Automation in insurance

Robots are versatile assistants that work quickly and accurately and are able to:

  • reduce the number of errors,
  • increase the amount of work by up to 80%,
  • cope with a large volume of tasks by working 24/7,
  • increase business profitability by 2-4 times.

Why does a robot need less time to complete tasks? It doesn’t get distracted and can work simultaneously in multiple systems: Outlook, Excel, CRM, Word, Chrome, etc. Robots take on the following tasks:

  • accumulate data about clients from various sources,
  • enter information into company systems,
  • transfer data from tables to systems and vice versa,
  • verify key business information,
  • send emails and notifications,
  • create invoices,
  • prepare reports on insurance claims, etc.

Robotic Process Automation use cases in insurance