A McKinsey study indicates that the insurance industry is second only to the banking industry in adopting Robotic Process Automation (RPA). Embracing technology has brought significant benefits to businesses in this industry, such as maximizing efficiency, reducing costs, and optimizing operations.
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Automation is Transforming the Insurance Industry
Automation is the key to reshaping the digital structure of the insurance industry. It helps to reduce complexity, streamline end-to-end processes, and stay ahead of market trends. With the help of technology, insurance companies are witnessing tangible results.
Cost Optimization
Reducing Time for Each Operation/Process: In insurance companies, tasks such as processing claims, verifying customer information, and calculating premiums can take hours. With the support of automated bots, processing time is cut by up to 75% (McKinsey).
Lowering Costs for Manual Labor: Automation reduces the need for manual labor for repetitive and time-consuming tasks, thereby saving on personnel costs. A Deloitte report shows that organizations implementing RPA can reduce labor costs by 20% to 30%.
Increasing Accuracy, Reducing Financial Losses from Errors: About 80% of the data in most insurance processes is unstructured, containing valuable customer information (Accenture). Errors in data entry, calculations, or claims processing can lead to significant financial losses for companies.
Handling this massive amount of data requires smarter processing methods than traditional ones. According to an IDC white paper, businesses can cut over 65% of costs due to employee errors and achieve a return on investment within six months of implementing automation.
Enhancing Operational Efficiency
Boosting Productivity with Superior Speed and Workload Capacity: Bots can work continuously 24/7 without breaks, significantly outperforming human productivity.
Making Processes Transparent, Reducing Human Intervention: Automation makes workflows more transparent, minimizing human intervention and subjective factors. Interdepartmental processes like claim processing and customer profile reviews are handled faster and more consistently, reducing bottlenecks.
Reducing Stress and Overload for Employees: Employees are relieved from repetitive tasks and can focus on higher-value activities. In a digital work environment, the combination of humans and robots allows companies to be more productive and competitive.
Professor Chris Bauer of the Goldsmith Institute of Management calls this trend a Hybrid Workplace. RPA performs low-level tasks, while employees focus on complex tasks and strategic decision-making. This not only enhances job efficiency but also increases employee satisfaction and engagement.
Case Study: Success with Automation Solutions
As global competition intensifies, businesses worldwide are accelerating their adoption of automation, from insurance companies and banks to manufacturing corporations.
In the U.S., digital insurance company Nsure decided to implement RPA in customer interactions to reduce reliance on center agents. Previously, Nsure employees had to manually handle over 100,000 customer requests each month through calls, emails, and text messages. A process that was time-consuming and prone to data errors.
By deploying RPA alongside AI and NLP (Natural Language Processing), Nsure addressed this challenge. The solution analyzes incoming messages, assesses customer intent, routes them to the appropriate departments, and suggests follow-up actions for agents. Today, Nsure’s automated bots handle over 90% of customer requests, saving significant time and reducing errors substantially.
In Vietnam, insurance companies are increasingly recognizing the potential of automation in improving operational processes. They are widely adopting RPA and intelligent automation solutions.
Petrolimex Insurance Corporation (PJICO) saw the potential of automation in handling repetitive invoice matching tasks. PJICO utilized virtual assistants with Optical Character Recognition (OCR) capabilities to automate the entire process, from content extraction and legality checks to detecting duplicates, reviewing payment methods, and archiving documents. As a result, the time to process each invoice decreased from an average of 15 minutes to just 3 minutes, saving 80% of process time. This allowed PJICO to reduce errors by 99.9%, achieving exceptional operational efficiency.
Through the success stories of Nsure and PJICO, it is evident that automation is becoming a powerful tool that helps insurance companies enhance efficiency.
Optimizing Operations with Cost-Effective Automation Solutions from akaBot FPT
akaBot (FPT) is a pioneer in providing automation solutions, with nearly 4,000 enterprise clients in 21 countries worldwide. The effectiveness of akaBot’s solutions has been clearly demonstrated. We help TPBank double its investment value and HDBank accelerate file processing 30 times faster, thanks to the following advantages:
– Intelligent Automation Solutions: Integrating multiple technologies, including AI/ML, OCR, IDP, Process Mining, Task Mining, Computer Vision, Business Process Management Systems, and eKYC.
– 24/7 Customer Support.
– Solution and customer support capabilities recognized by leading technology evaluation organizations (Gartner Peer Insights, Everest Group, IDC).
– Quick investment recovery time, just seven months (G2 report).
– Fast Implementation: Proof of Concept (PoC) within one week for the first automation process.
Conclusion
With significant benefits in cost optimization and process acceleration, automation is seen as a game-changing technology in the insurance sector. akaBot, with its comprehensive solutions, will accompany insurance companies in the digital transformation wave and drive breakthrough growth.
References:
Intelligent automation in insurance
RPA in insurance: 10 use cases and adoption guidelines
How Robotic Process Automation (RPA) Will Change the Role of Human Workers
