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RPA restructuring the Insurance Industry!

Jul 6, 2021
RPA restructuring the Insurance Industry

RPA in Insurance Industry

RPA in insurance is a laudable technology trend, which can advantage insurers in composing a high-growth business strategy while lessening costs. RPA in the insurance industry imitates transactional and clerical tasks, which are rules-based and do not need decision planning and strategizing. Robotic Process Automation (RPA) confronts a radical transformation in the advent of digital, as it inclines on embracing communication among legacy and more modern operations that were previously not attainable without comprehensive navigation and analysis.

RPA in a simple form, however, is just the start: Cognitive capabilities that empower machines to accomplish tasks reserved for human intelligence are also being influenced by robotics. Each of these cognitive technologies (ML, NLP, machine vision, emotion recognition, etc.) builds on the extant competencies of RPA and superior analytics. The resulting combination encompasses a dominant mix of automotive technology skills that finds practical use across industries.

RPA in Operational Reconfiguration

1. Employment Impact

In most insurance firms, the prevailing delivery pyramid is significantly bottom-heavy, with most volume-heavy transactions and reporting processes being performed by humans. The arrival of robotics is remodeling this design as insurers automate many of these methods, potentially decreasing the capacity and engagement of the bottom and middle layers of the delivery pyramid while observing an enlargement in the top layer. Business development, and marketing in response are seeing a growth in jobs due to a need for skills in – data analytics, machine learning, and algorithm development.

These skills equip insurers to develop new insurance products using dynamic pricing tactics based on lifestyle pattern intelligence and recognition while administering focused and customized marketing operations.

2. Operations

Policy servicing and reporting are incorporating elevated levels of self-service and automation and highly streamlined digital processes. With applications to back offices sinking significantly, these settings will likely see the most precipitous migration. RPA helps create new roles that utilize technologies like machine vision and optical character recognition to support humans in mediating difficult situations.

3. IT and Support Functions

There is bound to be a decrease in FTEs (full-time equivalent employees) due to automated processes reducing overhead. RPA will facilitate potential migration to distinct strategic data extraction policies on the cloud and other third-party analytical devices. These shifts will lead to the creation of more fulfilling jobs in the transformed insurance landscape. Agents will have access to individual cognitive assistants to empower data-intensive tasks and also help in decision making. This phenomenon will likely make employees more prolific and efficient, enabling them to focus on innovations to help assist customers better.

RPA in Technological Transformation

The RPA transformation in the insurance industry will be an extension of the journey that empowered advanced analytics. Herein are the technology landscape changes post RPA adoption:

1. Modular Sourcing

The RPA in Insurance technology is now involved in a “disaggregation” phase in which agile firms present specialized technological capabilities that are well-positioned to upset the administrators. These vendors are already rendering disaggregated settings on the cloud. Through this approach, insurers can source diverse capabilities from niche vendors and utilize these abilities as “cognitive operating systems” in developing intelligent applications.

2. Integrated Systems

RPA technology possesses the inherent ability to iteratively self-learn and produces insights through access to data from various sources. To maximize the advantages from this technology, integration with legacy systems and other developing technologies such as Big Data, IoT, cloud, etc., must be performed. It will likely lead to a breakdown of walls between vast amounts of data across the industry, thereby securing a single source of consolidated data model delivery in a significantly more consumable method.

3. Transparency and Control

To trust in the robots with whom they are working, humans will need to recognize how it makes a particular decision. Given the nascent frame of RPA technological progress, humans are expected to have the capacity to overturn machine-made judgments. Furthermore, regulators are expected to emphasize on robust audit mechanisms. The design of RPA systems of the future will be keeping in view all transparency and control characteristics. The technological landscape is developing swiftly, and an implication for insurers is the obligation to identify and source suitable capabilities to provide for better task design and a proper division of labor between humans and machines.


Insurance companies are often conservative in their approach and slower to embrace changes. Insurers who fail to encompass the cognitive journey will likely cede a strategic position to competitors and fresh market entrants already riding the wave. Conversely, organizations that try exceedingly and too soon for first-mover advantage may also be in peril. Insurance companies that represent an optimal and successful operating design and devise a strategy focused on leveraging new enabling technologies to satisfy the necessities of today’s insurance consumer are likely to be triumphant.

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