In today’s digital-first world, the possibility of “automation” is booming in the insurance industry. Most insurance companies have plans to completely automate their processes due to the ease of application and the benefits it provides. Here’s what the numbers say.
- Nearly 80% of transactional processes and 40% of strategic processes can be automated.
- By automating these processes, the cost of certain tasks lowers by 30-40%.
To make the most out of automation in the insurance industry, you need to automate the right processes in your business.
Check out these 5 top use cases of technology to improve your insurance processes.
Use Case #1: Ensure compliance with legacy applications
Several insurance providers, especially established businesses, rely on a mix of legacy systems and new-age applications. But these systems usually aren’t compliant, making organizations utilize more money and resources to handle data in both systems.
This resource wastage and duplication of work can be eliminated by using automation. Through robotic process automation, you can ensure seamless integration with legacy systems and improve the efficiency of all end-to-end processes.
Use Case #2: Attract next-gen customers through personalized services
Millennials and gen Z consumers expect personalization in everything, including their financial services. In fact, 72% of customers rate personalization as a top priority and would prefer organizations that fulfill this requirement.
However, creating customized experiences for every single consumer is difficult in the insurance industry. This issue can be solved by using automation. Automation programs can automate entire workflows and create personalized experiences without manual intervention.
For millennial customers, this is a brand that cares about their preferences and requirements.
For the insurance provider, this means better customer acquisition without resource or time wastage.
Use Case #3: Automate mundane tasks using bots
When it comes to automation, insurance companies think about advanced tasks and technologies. But the best application of this technology is in automating mundane, repetitive tasks.
Minor processes such as address changes, contact number updates, or even feedback collection take up considerable resources without contributing much to the revenue.
By creating an automated workflow for these tasks, insurance companies can not only save resources but also eliminate common human errors in these tasks. This helps you direct your human and monetary resources towards tasks that measurably contribute to your business growth.
Use Case #4: Leverage automation in predictive analysis
Forecasting plays a crucial role in the insurance industry. The right predictions influence company revenue, determine profits and help you create better policies.
But how can you ensure that these predictions are of the highest accuracy? By using automation in predictive analysis.
Automation bots utilize historical data to predict upcoming trends that can, in turn, play a role in insurance business intelligence. They can help identify policies that have high-cost risks, determine the right premiums, and reduce claims.
Use Case #5: Make insurance underwriting more effective
Insurance underwriting relies on a lot of data from various internal and external sources. But collecting this data requires a lot of time and effort.
Moreover, manually collecting and analyzing these resources leaves room for a lot of error.
These errors can be eliminated by leveraging automation. Automation helps collect all information from various sources, even those that may miss the human eye.
It also ensures error-free data analysis, considerably reducing insurance risks.
Leverage Automation With The Right Processes
New-age technology creates endless possibilities to automate tasks in the insurance industry. But identifying the right processes for automation can help you make the most out of your technological investments.
You can do this by carefully studying your business requirements, identifying pain points, and utilizing the right technologies to automate the process.
Also published on Medium.