Other parts of this series:
In our previous blog, we discussed how a two-tiered approach to RPA can help insurers realize maximum value from automation. The first tier involves an examination and prioritization of individual process candidates. The second tier of our recommended approach makes use of the scoring and assessment framework described previously. However, instead of evaluating individual processes on their own merits, the goal is to holistically evaluate groups of processes that are executed by discrete functional teams. It is not unusual for a team to carry out as many as ten different processes, of which six or seven might be good candidates for automation. With the process-centric prioritization it is likely that only one or two of these processes would have been prioritized for automation initially or at all. This would result in significant cumulative value being unrealized, and the insurer failing to transform its operations in a meaningful, strategic way.
For example, more than half of the back-office operations teams at one leading insurer were found to support multiple processes, each of which required fewer than four FTEs. These teams, accounting for over a third of the insurer’s operations staff, would mostly have been ignored under a process-centric approach.
The team-centric approach identifies the full range of potential that automation can achieve, prioritizing those processes as a group. It allows the insurer to achieve desirable ROIs by increasing the capacity of the team by up to 80 percent instead of the 30 – 40 percent that may be achieved by focusing solely on the one or two top-priority processes.
This second, team-centric tier enables insurers to transform the nature of their operations in a more strategic way by utilizing RPA comprehensively. It gives them greater flexibility and scalability, setting the stage for the application of advanced analytics and enabling a sharper focus on customer interactions.
In the next blog in this series, we will look at how RPA opens up new possibilities for insurers seeking sustainable competitive advantages.