Other parts of this series:
Automation—not a new concept anymore—has permeated almost all industries. And the results have been fantastic. From big savings to long-and short-term efficiency gains, robotic process automation (RPA) is delivering measurable outcomes when applied with systematic planning.
Robotics is the basis for “workforce virtualization.” It can emulate transactional, administrative tasks, bringing in greater precision and speed. For life insurers, RPA makes a compelling case and promises benefits that go beyond cost reduction, operational efficiency and standardization.
Let’s discuss the factors that make life insurance operations ideal for RPA
Nature of operations: RPA works best where the underlying processes are rules-based, repetitive and frequent, and use structured data as inputs. The time-consuming tasks in life insurance processing such as application handling, claims processing and data entry can be easily automated using robotic software.
No need for complex system integration: RPA interacts with individual systems in the same way as a human user, eliminating the need for complex system integration. Given the number of complex legacy systems that still exist in most life insurers’ operations, this can be a tremendous benefit and reduce the risk of insurance modernization programs.
Cost effectiveness: A successful RPA implementation can yield a 40–80 percent reduction in processing costs and an up to 80 percent reduction in processing time. Licensing and infrastructure costs are also relatively low.
No need for talent refresh: Platforms that deliver RPA are built with business users in mind—they are intuitive and process based, and do not require users to know software development languages to develop and configure the “bots”.
Quick implementation: Accenture has found that a simple-to-moderately complex process can be automated in as little as 6 to 8 weeks, including the design, configuration, testing and transition to production.
These factors indicate that the life insurance industry has an ecosystem that is conducive to uncover the full potential of RPA. In my next blog, I will discuss the numerous benefits RPA promises for life insurers and why it makes sense to go for an RPA implementation.
To know more about this digital innovation, read our point of view Intelligent Automation: Driving Efficiency and Growth in Insurance.