Today, technology has taken up the major part of various industries and companies are adopting this to excel in their field. No company wants to be pushed back in the race towards profit and success. Automation is the new thing in technology that has made a lot of things easier for the employees and has helped in increasing the productivity of the company. As per the Mckinsey Global Institute report, it is assumed that by 2025, up to 25% of the task force in the insurance sector will be replaced by technology, especially in Operations and Administrative Support.
The insurance industry is extremely high on data and it is very difficult to handle the whole thing in a seamless process without any errors. Thus, automation has become so popular.
Now let’s look at the various benefits of automation in the insurance sector:
1. Claims Processing
Claims processing takes a lot of time and manual efforts of employees and is prone to human error like any kind of mismatch of financial or customer details. It becomes really irritating and frustrating for the insurance agents. A typical claim processing takes several days as the insurance agents gather and check data from multiple sources.
As a result, this takes a lot of time and money. Such delays bring a bad reputation to the company and even poor customer experience. But implementing the automation tool in the insurance claims department eliminates the excess cost and efforts and gives accurate results. It is believed that 70% of the workload can be reduced because of this and it cuts the time duration by 50%.
2. Faster underwriting solution
Underwriting is the process of risk assessment for clients. It requires a lot of data gathering from various sources and their analysis. Then it is used to determine the risks associated with the policy selected. All of this can take weeks. But if we implement automation in this department the process will become extremely easy. Requirements like data collection from external and internal sites, pre-population of data fields, assessment of loss runs and reviewing the history of customers’ claims can be completed in no time unlike the time consuming manual work.
3. Compliance
Insurance companies need to deal with a lot of regulations. These compliance breaches can cause financial and operational damages to companies. But if insurance automation is adopted, huge amount of human effort will be reduced, and the process will be improved. Monotonous manual operations take time and are prone to errors. The accuracy can be increased with the help of technology and a complete log of the actions can be maintained. A few examples of AI drive automation include validation of customer data, compliance checking, generating accurate reports and notifications.
4. Scaling
The working of the insurance companies is a bit complex and high maintenance as they handle a lot of data. But automation and artificial intelligence once linked can give smarter results. It can overcome a lot of discrepancies and provide transparency to the processes. This intelligent automation process can be applied to various processes like sales and distribution, finance and accounting, risk control, onboarding, payroll, complaints handling, billing, policy cancelation, form registration, etc.
5. Data Processing
The insurance sector deals with a huge amount of data and handling this massive volume is a huge task. If we take a simple example of policy advice, then the agent must gather multiple data from multiple sources and maintain a database for the same. Doing all this manually is a big problem and it might also result in a lot of errors which can cause serious issues for the company.
But if automation is done then handling issues like database entry, cross-system transfers, error handling, scanning, calculations, email opening and moving the content into a database, scraping information from the internet, etc. All this can be done within seconds without any human intervention. All this reduces the pressure for the company employees and allows them to handle other important company-related issues.