Robotic Process Automation (RPA) today represents a real challenge for players in the insurance sector in terms of digital transformation and distribution channels, improvement of front-to-back processes, and regulatory compliance (Hamon law, solvency II, etc.).
Indeed, this method, which offers to automate recurring tasks at the level of corporate functions, namely front office, back office, and support, is intended to play an essential role in the development of the talents of tomorrow. Only companies that succeed in adopting this human-machine interface can hope to see their business flourish.
The advantages of robotics applied to the insurance industry
Insurance companies are institutions subject to many regulations. Thus, they are forced to face very strong requirements in terms of audit, data quality, and security. Robotics makes it possible to meet all of these obligations by offering the following advantages:
- Cost optimization up to 80%
- Optimization of processing time from 40 to 80%
- Simplified implementation from existing IT infrastructure
- Reduced risk of human error
- Scalable solution
The scope of automation and robotization technologies to processes in the insurance industry
Insurance organizations present a wide range of processes to which the RPA method can be applied. Among these processes, we find for example:
- The transfer of payment to a customer or any application
- The processing of refunds guaranteed compliance through the crossing of several systems
- Automation of the production of compliance reports
- Product administration by updating systems and sharing customer data
- Assistance in the sale of products thanks to the centralization of customer data
- Marketing promotion support with back-office automation
Among the examples of RPA solutions currently existing in the insurance market:
- Automation of claims management thanks to UIPath: the efficiency of claims management depends on the speed of operational processes and the accuracy of compensation according to the insurance contract. This, therefore, implies going through administrative, managerial, and customer relationship functions, marked by intensive manual tasks and document management concerns. UIPath, therefore, offers a solution that intervenes in each of the steps to simplify them.
- Wipro’s proposed RPA solution would allow an advertised cost savings of 40% over a 24-week period and an automation percentage of 55-65% for insurance policy management, 40-50% for claims management, and 70 to 80% on for billing and refunds.
The key ingredients to fully benefit from the potential of robotics
For an insurance company to benefit from all the operational excellence conferred by the implementation of an RPA program, its implementation must be global and integrated. To do this, the key elements to respect are:
1.Establish governance: opt for a top-down approach to ensure good collaboration between the Chief Technology Officer (CTO) and the Chief Operating Officer (COO) and therefore avoid the risk of conflict
2.Define a roadmap: identify the automation initiatives that can be put in place to meet the demands of the activity and determine the vision and strategy to be pursued
3.Identify the appropriate processes: assess which are the repetitive and regulatory processes that can be subject to automation
4.Build strong skills: create complete processes, in line with the activity
5.Anticipate the impact on the workforce: automation and robotization technologies have multiple effects on the workforce. Usually, they are received positively by the teams that are an integral part of the front office. On the other hand, the middle and back offices consider these developments more as a threat because the extent of their field of application is much greater at their level. Therefore, it appears essential to think about the best approach to secure the adhesion of all.