Successful RPA implementation to increase productivity up to 30% in the Insurance sector

Robotic process automation (RPA) technology is embraced by enterprises globally for varied sectors. The global robotic process automation market is growing in size with a CAGR of 24.9% between 2020 to 2027 and is expected to touch USD 6.10 billion by 2027.

The insurance industry is still exploring ways to leverage its capabilities to their full potential, those who have managed to make inroads are already experiencing extraordinary benefits. Considering that insurance is now an integral part of our lives, the benefits received from RPA adoption are enjoyed by insurers and customers. As a heavily regulated sector, insurance comes with a lot of documentation and standardized processes. Be it minimizing errors in claim processing or speeding up fraud detection processes, there’s a lot RPA can do to empower the insurance sector.

In its 21st CEO Survey, PwC iterates the importance of organizations becoming ‘bionic’ to enable humans and machines to work together to blend emotional and technological capabilities. It further repeats the role of RPA in making them bionic, citing it as the key to this transition.

Each product line in the insurance industry varies in its degree of standardization. Needless to say, the potential for automation differs too. Yet, experts unanimously agree on the incredible benefits of RPA in helping insurance companies save time and money across critical insurance processes.

According to Mckinsey, RPA promises a 30-200% return on investment in the first year.

Current insurers are now combining RPA with Artificial Intelligence (AI) to handle bigger workloads and analyze large volumes of data to convert them into actionable insights for better decision-making and business outcomes.

As you move forward with your RPA strategy, here are a few examples on how it can help increase productivity and reducing costs.

Underwriting & Pricing

According to Accenture, an underwriter typically spends more than 50% of the day on core processing. The market for technologies facilitating underwriting improvements has been growing continuously, and it comes as no surprise that RPA and AI are providing a huge impetus. RPA helps in ensuring accurate data checks to understand the insurance history of customers.

A significant part of underwriting involves determining the right price taking into consideration the risks involved. Insurers depend on RPA, AI, and analytics to get information from connected devices, sensors, and wearables. This data in real-time provides useful insights into customer-specific risks while providing an opportunity for insurers to offer personalized services and customized covers.

The services they offer also include alerts, rewards, and messages that help them transcend their roles from being risk insurers to risk mitigators. RPA can also assess loss runs and provide pricing options based on customers’ claims insurance history.

Global insurer Zurich, used RPA to free up its commercial underwriters to devote their time to more complex policies while boilerplate policies get handled by smart software.

Sales and Marketing

RPA helps insurers address the ‘advice gap’ from online portals that offer price and feature comparisons. Customers can now chat with their virtual insurance manager, convey their needs, and get the right advice and recommendations. RPA also enables insurers to mine non-traditional data that comes from social media, allowing them to upsell and cross-sell based on individual activities. For instance, those planning to travel may want additional coverage if they are going to participate in activities such as paragliding or skiing.

RPA helps agents find the information they need without having to wait for a sales representative to assist them. It also helps companies manage their brand persona online while ensuring compliance with rules and regulations.

Customer Service

A survey by TechSee confirms 39% of participants admitted to having canceled their contracts due to poor customer service. But with the foray of RPA, back-end processes are now linked to front-end service so perfectly that chatbots now identify the customer even before a call is answered.

Customer-facing chatbots can help customers with everything they need right from providing policy status and payment details to sending automated policy renewals and pre-loss warnings. RPA also takes care of reporting and compliance requirements so that records are readily available for quick reviews, reconciliations, and compliance checks.
UK based leading insurance carrier, Swinton implemented RPA technology to provide agents with assistance in handling new processes and to guide them through customer journeys. This shortened calls by over 50 seconds each on average and the contact center capacity was increased to handle an extra 7,781 calls per month.

Claims and Fraud Detection

TechSee points out how customers absolutely expect 3-second claim payouts and will not think twice before taking their business elsewhere if their expectations are not met. This is where RPA comes in. It offers the much-needed speed and accuracy required in a claims journey and self-service options to induce transparency into the process further.

Digital interfaces are convenient and preferred, too, as insurers introduce novel ways to settle claims. Apps are also being used to enable customers to assess damage to their car in case of accidents with their smartphone cameras’ help. The apps offer repair cost estimates based on thousands of images they have been trained on. RPA also helps in fraud detection and identification of suspicious claims with predictive analytics and machine learning.

Policy Management and Regulatory Compliance

While it may be expensive to have a dedicated policy administration software, RPA comes as a simple, safe, and scalable alternative to manage diverse policy activities. These include accounting, settlements, risk capture, credit control, regulatory compliance, etc., that need to be accurate but come with a high risk of errors if done manually.

US insurer Lemonade set a world record in paying a claim within 3 seconds of receiving details. The customers can explain the situation via their phone camera and submit it without paperwork. The Lemonade claim bot then runs algorithms on the details to validate any fraud. Post that payouts are instant.

RPA has proved to be a game-changer for the insurance industry, especially during the pandemic when the entire world has been forced to go digital. As Cliff Justice, a Principal in KPMG’s Innovation and Enterprise Solutions team rightly points out, “At this point in time, it’s not a question of whether you should or should not adopt RPA. You risk remaining relevant if you don’t. The question should be: ‘What’s the best way for your firm to employ RPA and AI.”

Automate Your Business with Trigent

In an ever-evolving world of innovations, we help you tide over diverse business challenges with automation solutions like RPA. Our extensive experience in the insurance sector gives us an edge in helping you transform your business. We will help you attain operational excellence while ensuring a faster ROI, all with the power of RPA.

Allow us to assess your business environment and tell you why RPA is the perfect fit for your business. Call us today.

6 Most Popular RPA Use Cases in Manufacturing Industry post-COVID

The role of RPA in manufacturing post pandemic

As markets continue to grapple with challenges posed by the pandemic that shows no signs of receding, organizations are now pinning their hopes on technology with robotic process automation (RPA) that can take care of repetitive routine tasks. RPA ensures tasks that earlier required days and weeks can now be completed in a matter of just a few hours or minutes.

The benefits of RPA use cases in manufacturing industry include better productivity, efficiency, accuracy, less wastage, and greater focus. No wonder almost 80 percent of global corporate executives that participated in the Deloitte LLP survey1 last year agreed to have implemented some form of RPA in their organization while 15% said they planned to do so in the next 3 years.

Expected to grow at double-digit rates through 2024, the global RPA software revenue is predicted to touch $1.89 billion in 2021 indicating a whopping 19.5% surge from 2020.

The pandemic has fueled enterprise interest in RPA as Cathy Tornbohm2, distinguished research vice president at Gartner explains, “The decreased dependency on a human workforce for routine, digital processes will be more attractive to end-users not only for cost reduction benefits but also for ensuring their business against future impacts like this pandemic.”

RPA is making great strides in diverse sectors including manufacturing. Applied Materials Inc., a Santa Clara, California-based company, has begun using bots to automate different areas of financial accounting for increasing productivity and plans to have 255 bots to improve workplace processes.

Top 6 RPA use cases benefitting the manufacturing industry

1. Bill of Materials (BOM)

Employees rely on a lot of information when it comes to the development of new products and commodities. They need to have the exact details as to what to purchase and when, the vendors/dealers that need to be contacted for the purchase, and how to go about the purchase.

Surge Transportation leveraged our expertise to create a pricing engine that offers real-time pricing to stakeholders based on a predefined strategy. The strategy can be modified in the application custom-built for them. RPA facilitates the set up of automatic alerts for changes in the system, thus improving regulatory compliance and supply chain performance. This makes our client stand tall among the top 1% of competitors to have this capability.

Also Read: Automating pricing operations enables 3PL to grow revenue by 40%

2. Data Migration

IoT equipment is now an essential part of the manufacturing fabric. But the challenge comes from the fact that legacy systems are ill-equipped to share data with others within the manufacturing ecosystem. RPA comes to their rescue in achieving this complex and time-consuming feat since bots can work independently of APIs.

RPA integrates different applications by acting as an intermediary between the old systems and the new thus facilitating seamless data migration. What makes RPA so empowering is its ability to correct and fix inconsistencies along the way in real-time. Insurers have leveraged RPA to lower its onboarding costs by 91% even as it experienced a 600% improvement in processing time. In turn, this boosted its service quality and customer experience that was held back by backlogs previously.

3. Customer Care and Service Desk Support

Delayed response or long resolution times can harm the trust you have built with your customers. To be able to help them promptly in real-time, you need to swiftly navigate through multiple business systems which are often laborious. But things can change dramatically by automating customer service with RPA.

US banks have harnessed RPA to improve their average handling time at their customer service center by 30%. This resulted in a monthly savings of 8000 work hours, enabling employees to use the freed time on value-added services.

4. CRM and Sales Order Integration

While sales thrive on relationship building and communication, it is a known fact that sales order integration does not stop there. It involves a mix of activities like creating estimates, checking product availability, processing orders, managing logistics, etc. Not to mention the coordination between many departments these processes call for.

Also Read: How automation is improving order and inventory management in logistics

A restaurant group used RPA to automate sales reports resulting in a 65% decrease in daily time expended on generating reports from across over 40,000 locations. This helped them nurture customer relationships and increase sales revenue.

5. Regulatory Compliance

The safety protocols constantly evolve in the manufacturing domain. There are individual product regulations to look into along with a whole lot of compliance requirements to adhere to. RPA takes away the stress from regulatory compliance ensuring your manufacturing outfit is audit-ready with accurate data processing and detailed records.

All bot activities are constantly monitored and available for inspection through a central log. RPA enables quick and effortless process updates too so that you are always up-to-date when it comes to compliance regulations.

6. ERP Automation

Bots play a big role in invoice processing and inventory control both of which involve elaborate paperwork, identifying deficiencies, and fulfilling customer demand at the earliest. Due to its ability to enhance operational efficiencies, RPA gives manufacturers an edge to manage tasks like sending invoices, creating purchase orders, computing shipping costs, taxes, or discounts, and driving overall financial processes that would otherwise require a high level of human intervention.

There are a whole lot of reports that need to be created and sent out via email or to be uploaded in a shared folder. SKUs need to be updated regularly too and Accounts Payable and Receivable have to be accurately managed. RPA takes care of all the reporting and related administrative chores to help organizations manage their business requirements efficiently.

The role of RPA is undeniably critical in the present manufacturing landscape. As Fabrizio Biscotti, research vice president at Gartner points out, “The key driver for RPA projects is their ability to improve process quality, speed and productivity, each of which is increasingly important as organizations try to meet the demands of cost reduction during COVID-19.”

Discover the impact of RPA with Trigent

Our RPA services are built for speed and scale. They make you agile to adapt in a fast-changing manufacturing sector and enjoy extraordinary cost savings along the way. We can help you minimize production downtime, optimize processes, and enhance your operational capabilities.

Our highly experienced business process consultants are eager to talk to you to help you automate with RPA without needing you to navigate through robot complexities.

Call us today for a business consultation.

References

  1. https://www.wsj.com/articles/software-bots-multiply-to-cope-with-stretched-resources-11611615504?mod=djemCIO
  2. https://www.gartner.com/en/newsroom/press-releases/2020-09-21-gartner-says-worldwide-robotic-process-automation-software-revenue-to-reach-nearly-2-billion-in-2021#:~:text=RPA%20Market%20Forecast%20to%20Grow,latest%20forecast%20from%20Gartner%2C%20Inc.