Learn how Robotic Process Automation (RPA) can help insurers establish a responsive, high-growth business while lowering costs.
Claim processing in the insurance industry is impeded by an overload of clerical activities, manual processing, lack of flexibility, and redundant data collection. This has led to inefficient claim processing and poor customer service, contributing significantly to the rising costs and stalled growth in the insurance space. Insurance claims automation is the need of the hour in the insurance sector to position the industry to be more efficient and customer-centric.
Robotic Process Automation (RPA) is a growing technological trend that can help insurers establish a responsive, high-growth business while lowering costs. RPA mimics transactional, administrative processes that are repetitive, rules-based, and do not need any decision-making or planning. This article will discuss the challenges faced in manual Insurance Claims processing and the solutions that RPA has to offer.
Challenges in Claims Registration and Processing
Collecting a vast amount of information from various resources is a necessity for claims processing. Manual handling of such a massive amount of data results in cumbersome and inefficient processes. It inhibits routine processing efficiency, underwriting, policy servicing, etc.
This, in turn, leads to unnecessary delays, inaccuracies, and a mounting backlog, causing violations of business regulations. It affects the consecutive processes and hampers the customer experience. The industry now realizes that introducing artificial intelligence in the claims management process helps in reducing anomalies and cuts down on processing time.
In the insurance industry, RPA allows for the integration of various claim processing data from many sources. However, robotic process automation may automate humanly demanding tasks such as data extraction, complicated error tracking, claim verification, integration of claim-relevant data sources, and more.
Insurance Claims Automation with RPA
RPA in insurance claims processing re-engineers the workflow to combine distinct claim processing data from many sources, resulting in a slew of advantages. Insurers can save money and time by automating labor-intensive activities, including error tracking, claim verification, and data extraction. Robotic process automation is an essential gear in the reconciliation wheel since it allows organizations to upload electronic bank statements for reconciliation using ‘matching’ algorithms.
Robotic Process Automation (RPA) brings about digital innovation in the insurance space to ascertain that the industry moves simultaneously as its customers. RPA in the insurance industry facilitates the integration of claim processing data such as policyholder details, legacy data, and other relevant data from multiple sources. This expedites the claim settlement process, improving the overall consumer experience.
The business benefits and RoI of RPA processes are immense. Specific to insurance claims automation, RPA helps in automating manual procedures such as:
- Data Extraction
- Data Entry
- Downloading policyholder data across sources.
- Reading and Scanning of data
- Data compilation
- Verification
- Complicated Error Detection and Flagging
- Follow Up Alerts
- Automated Approvals
- Claim Testing
- Claim aggregation of related data sources, and more.
This kind of automation, made possible through RPA, reduces operational costs, boosting the company productivity and growth opportunities.
The insurance space is challenged by the rapid evolution of consumer needs and cut-throat competition. Given that the industry is excessively dependent on the optimal working of the back-office processes, the industry has started adopting RPA to enhance clerical, routine and transactional activities through automation. This allows better redirection of man-hours for more complex and strategic tasks.
Automation in Insurance is Here to Stay
Customers’ requirements are changing at a rapid pace, and insurers are facing more competition. Because the insurance sector relies on back-office efficiency, insurers have begun to use RPA to automate transactional, regular, rules-based activities so that capital and talent can be repurposed for more sophisticated and strategic work.
RPA can help the industry increase revenues, improve compliance, maintain long-term business success, and provide excellent customer support while lowering costs and customer dropout rates. Acceptance of insurance claims automation is likely to become imminent, owing to the versatility and advantages it can provide.
