In the digital age, new automation technologies and rising customer expectations are driving new digital businesses to advance. But the insurance industry has been historically slower to undertake major digital transformations. Several insurers still rely heavily on paper-based manual processes, causing customers to wait for prolonged periods while employees experience complex documentation.
However, Intelligent Automation (IA) can transform how the industry operates to build end-to-end automation of an entire business function, ensuring the ultimate satisfaction of customers, regardless of the channel.
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Why has the insurance industry been slow to adopt Intelligent Automation?
Nature of the industry
The insurance industry is a heavy user of paper-based processes. ISG’s research indicates that 60% of insurance processes still rely on paper, leading to inefficient, slow, and costly operations.
Besides, since the insurance sector has been built by a conservative culture that is expected to be stable and consistent, any changes have to be thoroughly examined to mitigate risks and guarantee compliance. The industry itself is also heavily regulated with strict regulations. This explains why insurance has been regarded as a digital laggard in the finance sector. According to the Insurance Digital Maturity Study of ACORD, only 2.5% of insurers are real technology innovators, while 16% are labeled as laggards.
Complexity of data
The underlying reason for the insurance’s slow adoption of emerging technologies can be attributed to the complexity of data.
Data and documents of most insurance processes come in multiple forms such as emails, PDFs, handwriting, phone calls, faxes, transaction reports, underwriting/claims handling guidelines, etc. Each of the media can exist in various formats like structured, semi-structured, and unstructured. According to Accenture, 80% of all data is unstructured, containing valuable information about customers. However, this massive amount of data requires smarter processing than traditional methods. This puts the insurance industry under tremendous pressure to take advantage of data sources and open up new business opportunities.
How can the insurance industry benefit from Intelligent Automation?
Intelligent Automation holds the key to unlocking disruptive business models, facilitating insurers to advance workflows and streamline end-to-end processes. IA strategy that combines the most recent advances in RPA, and AI/ML have numerous successful use cases.
- Claims processing: IDP can automatically collect documents, verify information for FNOL (First Notice of Loss – the first step of claims processing), extract data from paper claim submissions, classify data, and enter it into the system without human intervention.
- General data insights: AI/ML-based tools can provide predictive data, and determine meaningful metrics for insurers to identify customer needs for personalized products and services.
- Fraud prevention: AI algorithms can detect fraud before it occurs by identifying patterns and anomalies, then flagging suspicious activities for human review.
- Policy management: AI can determine the scope and terms of the policy, and RPA bots will automatically send out automated policy renewal alerts to policyholders.
- Underwriting: Using AI and NLP-text analytics, insurers can analyze data from multiple sources, including previous losses, health, and financial data to examine risk concerning underwriting and pricing. Underwriters can then take advantage of this analysis to generate suitable policy documents.
Overall, all the advanced IA technologies combine powerfully together to enable insurers to streamline business processes, reduce operational costs, enhance fraud protection, improve accuracy, boost speed, accelerate time-to-market for innovative and valuable products/services, and ensure superior customer experience.
Discover the full potential of Intelligent Automation in insurance with akaBot
Juniper Research on automation in the insurance industry shows that almost 50% of insurers will invest in RPA by 2024. This shows the apparent efforts of insurance businesses to take more leaps toward innovation and achieve sustainable growth.
In Vietnam, akaBot (FPT) is a pioneer in providing automation solutions, facilitating insurers to build a comprehensive roadmap for automation and redefine their organization based on IA.
- One-stop shop solution: akaBot offers an end-to-end Hyperautomation solution, integrating many intelligent technologies, including AI/ML, OCR, IDP, Process Mining, Task Mining, Computer Vision, Business Process Management Systems, eKYC to help businesses stay ahead of the competition and meet the evolving needs of customers.
- 24/7 efficient support, recognized by customers and the world’s leading IT solution evaluation organizations (G2, Gartner)
- Quick return on investment (after only 7 months, according to the G2 report)
- Fast implementation: PoC (Proof of Concept) within 1 week for the first process automation
To learn more about how to accelerate your insurance organization with IA, contact us right away.
References
Automation in Insurance: Use Cases, Benefits and More
How Intelligent Automation is Changing the Insurance Industry
How intelligent automation is supercharging the insurance industry
Insurers accept they were slow to adopt digital
Why Insurance Lags Behind Other Industries With The Integration Of New Tech
Intelligent Automation in Insurance 2023: Use Cases & Examples
Are insurers really off the pace with digitalization?
How Intelligent Process Automation in Insurance Boosts Your Bottom Line
akaBot (FPT) is the operation optimization solution for enterprises based on RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 20+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, and Logistics…, akaBot is featured by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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