Insurers have become familiar with the current market realities of relatively low premium growth, rising loss costs, and ever-increasing customer expectations. Over the years, they have focused on adapting their businesses to address these challenges. Senior management, business unit leaders, and IT heads have primarily directed investments towards performance improvement initiatives, including cost reduction.
Challenges
Legacy Systems
Outdated technologies and a complex infrastructure of siloed applications, supporting data, systems, and architecture.
Complex Business Models
Particularly in underwriting and claims, where multiple variations of similar processes have been modified to support unique lines of business across the value chain.
Lack of Vision and Support
Insufficient vision, C-suite backing, and talent to implement and manage a digitized process environment.
Organizational Silos
Multiple, complex balance sheets and a lack of transparency and collaboration across the enterprise.
Marketplace Disruption
Emerging competitors and shifting compliance and governance requirements.
To tackle these issues, operations and technology professionals, along with business leaders among insurers, agents, brokers, and reinsurers, are increasingly turning to Robotic Process Automation services. RPA combines software with artificial intelligence and cognitive computing to mimic human activities for conducting highly repetitive tasks.
RPA in Insurance
Automation plays an important role in insurance sectors for multiple reasons. RPA is extensively used to streamline operations, address several challenges, and improve customer experience. Here are the major use cases of insurance automation:
Regardless of the level of human interaction, RPA solutions typically consist of five key elements:
Non-intrusive business system integration
Business rule execution based on defined logic and self-learning
Work item and exception queuing
Data aggregation which pulls information from multiple back-end systems
Activity monitoring
Automation Potential for various insurance functions
| Customer Service | Risk & Compliance | Insurance Sales Service | Claims Handling |
| Ticketing | KYC | Updating an e-invoice address | Using AI to recognize damages (vehicle) |
| Company customers yearly info | Real-time analytics with RPA | Online insurance to the legacy system | Direct claim from a partner to the insurer |
| Travel insurance certificate | AML | Changes of the insurance object | Enhancing after service processes |
| Enhancing after-sales processes | LOG data for audit trail | Changes in payment terms | Updating bank account information |
| Termination of an insurance | Sanction screening | Enhancing after-sales processes | CSAS feedback loop |
| Classifying customer messages by utilizing AI | Authority inquiries | CSAS feedback loop | Redirecting claim to the right handling process (AI) |
RPA Use Cases in Insurance
| RPA Service Category | Services Offered |
| Claims Processing Automation | – First Notification of Loss (FNOL) Automation – Data Collation for Claims Assessment – Automated Claims Tracking and Status Updates |
| Customer Service Automation | – Omni-channel Query/Call Intake – Policy Document Issuance – Mid Term Adjustments Automation (Cancellations, Updates to Contact/Bank Details) |
| Billing and Payments Automation | – Premium Collections and Settlement Automation – Periodic Payments and Premium Adjustments – Claims Settlement Using Automated KYC Processes |
| Underwriting Automation | – Renewals Processing Automation – New Business Data Collation – Performance Reporting and Peer Review Automation |
| Fraud Detection and Prevention | – Advanced Fraud Detection through Data Analytics – Real-time Fraud Monitoring and Alerts – Integration with Machine Learning Models for Fraud Prediction |
| Customer Onboarding and Management | – Automated Customer Onboarding Processes – Customer Data Verification and Validation – Customer Interaction and Feedback Management |
| Policy Administration | – Policy Issuance and Management – Automated Policy Renewals – Policy Cancellation and Reinstatement Automation |
| Regulatory Compliance and Reporting | – Automated Compliance Checks – Regulatory Reporting Automation – Audit Trail Maintenance and Management |
| Cross-Selling and Up-Selling Automation | – Personalized Product Recommendations via Chatbots – Customer Segmentation for Targeted Marketing – Automated Campaign Management |
| IT and Support Functions Automation | – Application Development and Maintenance – Infrastructure Management – HR Processes Automation (Recruitment, Onboarding, etc.) |
| Data Accuracy and Quality Control | – Automated Data Entry and Validation – Error Detection and Correction – Continuous Data Quality Monitoring |
| Enhanced Customer Experience | – Automated Customer Feedback Collection and Analysis – Real-time Customer Support through AI Chatbots – Streamlined Customer Interaction Channels |
Xylity RPA Services
We at Xylity provide technical services ensure a comprehensive approach to RPA implementation, from initial assessment to ongoing support and optimization, enabling businesses to embrace automation at large.
- Process Assessment and Consulting
- RPA Development and Implementation
- Platform and Tool Selection
- Automation Design and Architecture
- Bot Deployment and Management
- AI and Cognitive Automation Integration
- RPA Maintenance and Support
- Security and Compliance
- Training and Knowledge Transfer
- Scalability and Governance
- Analytics and Reporting
- Legacy System Integration
- Cloud-based RPA Solutions
Short-term and long-term impacts of RPA on various insurance functions
What is particularly revolutionary about RPA software is that it does not necessarily require companies to make changes to their strategic processes or existing back office technologies. Even if companies are separated geographically or have various technological systems implemented, RPA is able to connect systems. Therefore, RPA may function as a low cost, low risk solution for process optimization with near-term payback.
| Insurance Function | Short-term Impact: RPA (1-5 years) | Long-term Impact: R&CA (5-10 years) |
| Product and Underwriting | Digital marketing, campaign management | Customer segmentation, focused and customized marketing |
| Customer segmentation, focused and customized marketing | Product development | |
| Product development | Digital products | |
| Digital products | Customized products based on individual preferences | |
| New Business Development | Sales support | Channel management through advanced analytics |
| Channel management | New customer acquisition | |
| Customer Management | Automated complaints and issue management | Lifestyle pattern intelligence |
| New customer acquisition | Automated customer onboarding | |
| Policy Processing | Policy issuance | Business rules administration |
| Business rules administration | Cognitive analytics enabled self-correcting processes | |
| Policy Servicing | Business rules administration | Cognitive analytics enabled self-correcting processes |
| Regulatory and Business Reporting | Automation of rules-based reporting capabilities | Intelligent reporting and analysis capabilities |
| Claims | Claims management | Advanced processing enabled by image recognition |
| Standard claims management processing | Cognitive analytics enabled self-correcting processes | |
| Claims adjustment | Machine vision to assess simple claims | |
| IT | Application development and maintenance | Increased reliance on third-party service providers |
| Increased reliance on third-party service providers | Standardized processes and applications | |
| Infrastructure | Migration to cloud | |
| Support Functions | Human resources | Standardized HR processes, digital recruitment |
| Standardized HR processes, digital recruitment | Finance, tax, and planning | |
| Finance, tax, and planning | Reduced overheads | |
| Standardized reporting | Other support functions | |
| Other support functions | Reduced overheads | |
| Reduced overheads |
The Advantages of RPA in Insurance
Implementing RPA in the insurance sector can significantly improve both back-office processes and customer-facing services while creating a more dynamic work environment. Employees should be freed from monotonous data entry tasks to focus on higher-value activities.
Key benefits of integrating RPA into insurance operations include:
Accelerated Claims Processing
Enhanced Customer Satisfaction
Improved Data Accuracy
Significant Cost Savings
Investment Protection
Expanded Cross-Selling Opportunities
Don’t let outdated systems and processes hold your organization back. Embrace the future with Xylity Technologies’ RPA solutions tailored for the insurance industry. Transform your operations, boost productivity, and stay ahead of the competition. Contact Xylity Technologies today to learn how our innovative RPA services can revolutionize your insurance business.
About Xylity Technologies
Xylity Tech is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology.
With its strong technology background and deep industry expertise, Xylity is trusted by its clients to address the entire breadth of their industry needs, from strategy and design to operations, fueled by the fast-evolving and innovative world of cloud, data, AI, connectivity, software, and collaboration platforms.
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