Insurance, unlike the other industries, is a data-heavy industry with new information sources growing exponentially, offering new opportunities to improve process efficiency and offer super-fast claims payments. Once considered digital laggards, insurers are now upping their game in terms of technology adoption and process automation. However, legacy systems remain a significant hurdle to overcome. The challenge here is not necessarily the lack of an appetite for change, but the insistent role of legacy systems in the current processes. While FinTech firms have little to prevent them from harnessing new technologies, existing insurance industry players must find solutions to overhaul their traditional systems and fragmented processes.
In line with the ongoing developments, digital analytics now presents insurance firms with new growth opportunities and solutions to a previously unmanageable problem- Digitalization and Insurance Process Automation. Digital analytics solutions that combine AI, NLP, and other technologies also play a pivotal role in expanding the boundaries of digitalization and process automation.
Our advanced digital analytics solutions bring together insurance process automation, NLP, and intelligent document processing, and other data extraction and enrichment tools to bring in a holistic approach to automation. Request a free proposal to know more.
The Insurance Industry is at an Inflection Point
The insurance industry is at a tipping point in its evolution prompting businesses to embrace new technology and overhaul outdated business processes to sustain a leading edge. Meanwhile, the rise of aggregators has paved the way for a price-sensitive market, with high customer churn rates and a declining loyalty rate. Compounding these challenges is a more stringent regulatory environment that adds to the cost and compliance burden on insurance firms. The need to drive efficiency of operations amid the crisis has driven a rise in digitalization and processes automation within the industry.
Lack of C-suite support, vision, and necessary skill sets to implement and manage a digitized process environment can curtail the ability to drive change through insurance process automation. Contact us to learn how we can help you.
This article examines the key benefits associated with Digitalization and Insurance Process Automation for the insurance industry. As insurers prepare themselves to adapt to the new normal, insights such as these will help them identify areas to extract maximum value by leveraging analytics in insurance process automation.
Faster Claims Processing
In the insurance sector, claims processing is often classified as the ‘moment of truth’ since insurance service providers are mostly judged on their promise to pay. When customers experience a loss, they often look for support in terms of fast and frequent updates on the status of their claim. Digitalization and insurance process automation can help meet these demands.
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By leveraging process automation and advanced analytics to automate repetitive tasks and analyze data involved in claims management, such as identifying client files, checking documents for completeness, searching claims histories, manual tasks can be reduced by up to 50%. This not just helps shorten the processing time but enhances the quality by streamlining the claims process. This, in turn, can help insurers to evaluate and process straightforward claims in record time, reducing the total cost of a claims journey by as much as 40-45 percent.
Enhanced Customer Experience
To meet the dynamic expectations of today’s customers, there is a growing need to innovate and enhance process efficiency. With players from the other industries setting the bar high, customers in the insurance sector are now more inclined towards digital interactions and expect insurers to expand traditional channels of communication with intuitive self-service options. This has prompted leading insurance service providers to adopt an omnichannel approach centered around improving customer experience. Based on our analysis, digitalization and insurance process automation can provide an easy solution to this problem, helping insurance service providers to reinvent processes while offering high customer service levels.