Intelligent automation is revolutionizing the insurance industry, offering a powerful combination of robotic process automation (RPA) and artificial intelligence (AI) to streamline operations and enhance customer experiences. This technology enables insurers to process both simple actions and complex cognitive tasks at unprecedented speeds, resulting in significant improvements across various aspects of their business.
One of the primary benefits of intelligent automation for insurers is the reduction of human error in repetitive tasks. By automating these processes, companies can achieve higher levels of accuracy and consistency in their operations. Moreover, this automation frees up human resources to focus on more value-added activities, such as customer service and strategic decision-making.
The impact of intelligent automation on customer experience cannot be overstated. According to EY, 87% of decisions to remain with an insurance provider are directly influenced by the claims experience. This statistic underscores the critical importance of leveraging technology to improve claims processing and customer interactions.
Insurers are employing a range of intelligent automation technologies to achieve these improvements. In addition to RPA and AI, many companies are utilizing intelligent document processing (IDP) and machine learning (ML) to enhance their capabilities. These technologies work in tandem to process vast amounts of data, extract relevant information, and make informed decisions quickly and accurately.
To tie these various systems together, insurers are increasingly turning to data fabric solutions. This approach allows companies to leverage their existing legacy systems while simultaneously adapting to new technological developments, ensuring a seamless integration of old and new.
Real-World Success Stories
Several insurance companies have already implemented intelligent automation with remarkable results. Aviva France, for instance, has seen a dramatic improvement in their claims processing speed. They increased same-day claims processing from 1% to 25% and achieved a 530% increase in claims settled within three days. These improvements were accompanied by a reduction in manual tasks and enhanced communication and collaboration across the organization.
Aegon, another success story, reported a 36-point increase in their Net Promoter Score after implementing intelligent automation. They successfully moved 80% of their transactions online, unified their internal systems, and delivered fast, digital, and compliant processes. Additionally, they migrated 45,000 pension participants to a new system, showcasing the scalability of their intelligent automation solution.
A European P&C insurer achieved an impressive 99.7% customer satisfaction rating by implementing a mobile claims intake and management system. This system utilizes AI to analyze photos, verify invoices, and estimate repair costs, resulting in a significantly shortened claims process and more consistent pricing estimates.
Implementing Intelligent Automation
For insurers looking to implement intelligent automation, several key recommendations emerge. First, adopting a platform approach allows for greater flexibility and scalability. It’s advisable to start small with pilot projects before scaling up to larger implementations. Having a clear plan for future growth is essential, as is ensuring that data is well-managed and connected through a robust data fabric.
Improving claims processes should be a priority, whether through existing tools or by considering specialized claims solution software. These improvements can lead to substantial gains in efficiency and customer satisfaction.
Looking ahead, McKinsey predicts that disruptive changes will fundamentally alter the insurance industry by 2030. This forecast underscores the urgency for insurers to modernize their operations and invest in new technologies. Those who embrace intelligent automation now will be better positioned to navigate these changes and maintain a competitive edge in the evolving marketplace.
As the insurance industry continues to evolve, intelligent automation will play an increasingly crucial role in shaping customer experiences, operational efficiency, and overall business success. By leveraging these technologies effectively, insurers can not only meet but exceed customer expectations, driving loyalty and growth in an increasingly competitive landscape.