Robotic Process Automation in Insurance
March 16, 2021

Why it’s Time to Embrace Robotic Process Automation in Insurance – Resistance is Futile!

Discussions about robots, automation and AI often come with certain fears – job losses, people replaced with machines, etc. But in today’s fast-moving digital landscape, automation is an inevitable ‘resource’ that should be embraced. We explore how the use of robotic process automation in Insurance is changing the industry, from streamlining processes and reducing costs to improving the customer experience.

Why Insurance businesses should embrace, not fear robotic process automation

Resistance is futile! That was the stock line of The Borg; a cybernetic/organic alien species that conquered other civilisations and ‘assimilated’ them. And an arch-nemesis of Captain Picard in the Star Trek series. Despite their bad rep, The Borg never really frightened me. They moved very slowly and generally didn’t attack you unless you attacked them first. Controversially, I even kind of empathised with the Borg philosophy. Take something that they think is flawed (other alien species) and bolt-on robotic bits and connect them to a ‘hive’ mind to make them better – everybody wins!

Ok, maybe not. But back here on Earth, there are plenty of less extreme examples of things that have successfully been improved by the introduction of robotic processes, if not actual robot parts. That’s where Robotic Process Automation, or RPA, comes in. Using robots or software bots to streamline processes, reduce time-consuming, repetitive manual tasks and eliminate human errors. Something insurance teams could really do with, right?

What is robotic process automation (RPA)?

Well, the term has been around since around 2000. Here’s the techy definition: “RPA is an application of technology, governed by business logic and structured inputs, aimed at automating business processes.

What that means is that using robotic process automation (RPA tools), a company can configure software, or a robot, to capture and interpret applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems. So, RPA can enhance repetitive processes with the consistent application of logic and minimal subjectivity. This significantly reduces costs too.

Applying robotic process automation in Insurance

As a leading global InsurTech company, EIP utilises robotic process automation in Insurance, with one arm of its fully digitised insurance software portfolio – delivering an automated claims engine for mobile device insurance. 

Contact centres traditionally handle mobile device claims, which involves customer inconvenience and corporate balance sheet expense. However, these types of claims are relatively linear, and rarely require a lot of subjectivity in their handling. So, a comprehensive rules engine, strong external integration and some machine learning can do the same job without needing a human to be involved. 

This is a significant use case for applying RPA in Insurance. It has the benefits of applying claims handling, reducing costs and improving the customer experience. 

Read our recent blog on why insurers need to improve the claims experience.

How EIP delivers automated claims processing using RPA

Sure, there will always be the curve-ball claims that are so unusual that even the best engine can’t accommodate them. But for the last 8 years, the EIP InsurTech platform has happily processed over 90% of customers’ claims automatically. So, this just leaves a small number of more specific customer issues flowing through to the client’s contact centre where they can be helped one-to-one. 

RPA also offers a customer experience that’s out of this world – see how I’ve kept the space theme going! EIP has seen end-to-end claims processing times plummet from 8 minutes or more down to just 90 seconds using our automated web application for insurance customers

Thanks to the use of robotic process automation in Insurance, net promoter scores are rocketing. And all this alongside huge savings in program management costs. Also, EIP’s latest innovations for the insurance industry even reduce the claim time further to under 10 seconds! But you can learn more about that in our separate article on parametrics in insurance.

Summary: Reap the benefits of robotic process automation in Insurance

So, with these kinds of process improvements and commercial enhancements that robotic process automation offers, maybe resistance is indeed futile. We should welcome RPA (but not The Borg) into our lives a little more. And, for the Insurance Industry, the benefits of using RPA are clear. You just need to identify where to best apply automation to drive value for your business and its customers.

If you want to know more about using robotic process automation in Insurance and how the technology works, get in touch with the EIP team. Or why not explore our InsurTech solutions? See how our innovative software, powered by automation, is transforming the insurance experience.

Author: Ross Sinclair (CEO at EIP Ltd.)

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EIP is a market-leading global InsurTech business that delivers digital insurance solutions to Telecoms, Banking and Lifestyle insurance providers. We’re an InsurTech100 company trusted by some of the world’s biggest brands. Learn about EIP and how our end-to-end solutions can transform your scheme management and claims experience.

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