Other parts of this series:
In the first blog in this series, we discussed how robotic process automation (RPA) is helping insurers reduce both processing costs and time. RPA can also deliver major improvements in quality, such as the virtual elimination of processing errors. It generates a high volume of operational process data and metrics, supporting advanced analytics and operational intelligence in the areas of fraud detection and prevention, regulatory compliance, and customer experience management, among others.
Many back-office and other corporate functions are promising candidates for automation, including claims and benefits, policy administration, account maintenance, and finance, tax and accounting services. Functions that have already been outsourced or are being considered for outsourcing also tend to be good candidates for RPA, as they generally rely upon high-volume, rules-based digital processes.
An insurer undertaking RPA in one major area such as underwriting and policy serving may be able to automate a broad range of processes such as:
- Underwriting and pricing – Automation of data entry for clearance and registration processes and automation of the audit process for exposure revision.
- Rating, quoting and issuance – Automation of previously manual data entry for large schedule rating, and of form fulfilment activities not previously automated.
- Policy administration and servicing – Rejecting or cancelling a policy if a payment has not been made within the required period, or at the request of the customer; automating the checking of policy premium discrepancies and reconciliation as needed; payment reconciliation.
- Required minimum distribution – Automatic generation of first time eligible participant letters.
Similar candidates can be found in areas including distribution (management of agent paperwork, conducting compliance, legal, credit and identification checks); claims (automating input of manually submitted notices); money handling (allocating incoming wire and manual checks to policies and/or contracts); and general administration (extracting customer complaints from an intranet web form or external website and loading them into a complaints management system).
In the next blog in this series, we will look at some of the elements that make an RPA implementation both a strategic and a tactical success.