What comes to your mind when you hear the term ‘Insurance’?
It must be the visual of standing in line for hours or going through loads of paperwork. Well, this was exactly how the insurance sector used to operate until Insurtech took over.
Insurtech refers to the process of incorporating the use of advanced technology into the insurance industry to provide better customer service and improve work efficiency.
According to Grand View Research, The global insurtech market size was valued at USD 2.72 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 48.8% from 2021 to 2028. This rapid growth is the result of the increasing need of digitizing the insurance industry and improving communication with their clients for better and faster outcomes.
Today, we will be learning more about one of the most important technologies of Insurtech, Robotic Process Automation (RPA), and how it is used for automating the insurance claim process.
Let’s dig in.
What is Robotic Process Automation?
Robotic Process Automation is a software technology governed by business logic and structured inputs to automate business processes. RPA tools help in building, deploying, and managing software that interprets human actions. RPA software helps in generating an automatic response to an email and deploys thousands of bots, each programmed to automate jobs in an ERP system.
According to Grand View Research, the global Robotic Process Automation market size was valued at USD 1.57 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 32.8% from 2021 to 2028.
Automating Insurance Claims Processing with RPA
The increasing rate of insurance fraud, unsatisfied customers, and most importantly errors in the insurance claim process was amongst the top factors behind incorporating the use of technology in the insurance sector.
No insurance company can afford to make any errors in claim processing. This is why a growing number of companies are trusting Robotic Process Automation (RPA) to automate the insurance claims process.
Before RPA, insurance companies faced these problems in claim processing:
1. Manual data entry: Claims processing requires much paperwork and data entry. Before RPA, these tasks were performed manually, which made them prone to errors.
2. Time-consuming task: Insurance agents spend around 10% – 25% of their time performing repetitive tasks required for the claim processing.
3. Disparate mediums: The information was processed and collected through a disparate medium which created a lack of accountability and ownership.
4. Data security: Because of using different software for different purposes, it was difficult to secure data and even restore data.
5. Regulation compliance: The software was incapable of updating the latest changes in any law or regulation, which posed a serious challenge for companies to remain compliant when operating in different states and countries.
Benefits of Automating Insurance Claims Processing with RPA
Speeds up the process
Claims processing requires insurance companies to gather a vast amount of information from several sources, creating exhaustive quantities of data.
RPA speeds up this process by integrating all the different claim processing information from multiple sources without any human intervention and bringing a structure into it. This also results in high customer satisfaction.
No room for errors
RPA automates the manually intensive processes like extraction of data, complex error tracking, claim verification, and integration of claim-relevant data sources.
This automation leads to quick, efficient, and precise claims adjudication, that too without any human intervention, leaving no scope for errors.
Higher compliance with laws and regulations
RPA allows the insurance companies to control and monitor every record on an ongoing basis without worrying about errors or missing data.
Furthermore, the RPA bot documents every step of claims processing and updates it according to the latest changes which ensure higher compliance with every law and regulation.
According to Scott Simony (Head of Industry at Google), “Insurance is a highly regulated industry and it is not easy to move quickly, but the fact is consumers are moving at exceptional rates. So, the companies that will stand out are the ones that are going to find ways to move a bit faster, at the pace of the people they’re insuring.”
RPA is surely the type of technology that can help an insurance company to stay ahead of its competition. If you are thinking of automating your business process with RPA, then Jellyfish Technologies can help you take over the advanced operating system.
Jellyfish Technologies understands the need of incorporating advanced insurance technology to meet user expectations, thus providing the best insurtech software development across the globe.