The biggest challenge for insurers today is not just digitizing the business but going beyond traditional offerings. Insurance companies are revolutionizing the industry using innovative technologies like AI, RPA, and big data.
For an insurance business, everything comes down to claims. It is one thing that affects clients the most when the insurer delivers on its commitment, and that’s what makes it so essential. With the claim filing process being the most significant factor in customer satisfaction, let’s look at how technology can radically change costs, operations, and customer experience.
Insurance companies often struggle with automation in the first place. Keeping aside the typical reasons like the unwillingness to change or lack of budget & technical resources, there’s one big reason — insurance processes are usually too unstructured to incorporate into the digital workflow. Claims data exists in numerous formats — documents, images & voice memos, and is shared via multiple channels — email, PDFs, chats, etc. — making it extremely hard to analyze with high accuracy without an agent’s attention. And when it comes to decision-making, it’s even more complex — understanding the context of each case is required.
Does it mean that the industry can never be automated, and we will require human intervention for every part of the process? Well, not really. But it does require more advanced approaches that mimic human judgment like AI, ML, and robotic process automation for insurance.
Now, let’s understand why claims automation is essential. Suppose a customer files a claim for their damaged car window due to an act of vandalism. Once the claim is filed, there are several steps to follow. Firstly, an adjuster investigates the case to check if it’s covered under the policy. If it is, he evaluates the loss and determines the cost of repairs. The adjuster will then file a report and share it with the insurance company. After which, the company pays the customer. These are time-consuming, manual steps and can take several days or even weeks for an insurance player to settle a claim. This can negatively impact customer retention.
With an automated system in place, you can provide all the necessary information, and then the system will take care of the rest. This might not seem big, but can be a huge time-saver, especially if you have to deal with hundreds or thousands of claims requests on a regular basis.
While the claims management process is challenging, insurance companies can leverage the benefits of P&C claims automation to deliver an enhanced customer experience.
Capitalizing on a claims automation solution is worth the investment, especially considering the long-term benefits, such as increased customer satisfaction and reduced operational costs. RPA is an end-to-end automation solution, integrating with all applications and systems — including modernizing legacy systems. Moreover, it is entirely scalable and has up to 100% accuracy.