How AI Service Providers and RPA are Impacting the Insurance Industry

The 21st CEO Survey carried out by PwC for the insurance sector states that to drive innovation, companies have to embrace the bionic organization model. It is a seamless end-to-end business model, which runs on advice from machines to improve business outcomes. RPA and AI Service providers are helping firms appreciate this model.

So, today, we’re going to take a look at how AI and RPA vendors are impacting the insurance sector.

RPA in Insurance Industry

Insurance companies that sell cover for health, automobile, travel and property, etc., are heavily burdened by back-end processes. These companies deal with high volumes of monotonous and routine business services that cause hindrance in timely customer service, maintaining growth, and achieving profit targets.

RPA vendors have helped such firms to achieve strategic competitive advantage in the insurance market. Below mentioned are some of the applications of RPA in insurance industry.

Claims Registration and Processing:

A vast amount of information is collected from various sources to process claims. It creates loads of data. The existing claims systems lack functionality and flexibility. This has caused excessive manual intervention resulting in inefficiency and excessive time consumption.

RPA has helped to integrate varied claims processing information from different sources. It has brought about automation in the extraction of data, claim verification, complex error tracking, and more.

Regulatory Compliance:

The insurance sector strictly follows regulations related to documentation and audit trails. It is a monotonous and error-prone process which thereby increases the risk of a regulatory breach. Robotic automation companies can come into the picture and replace the need to enforce regulatory compliance manually. It makes sure that the data is correct and tracks down if any changes are encountered.

Impact of AI Service Providers in Insurance Industry

The estimation put forward by McKinsey states that the potential annual value of up to $1.1 trillion can be achieved if AI tech is fully applied to the insurance industry. The main areas where AI applications are used in insurance include customer experience (58%), process optimization (43%) and product innovation (19%) as per the 2018 study by Everest Global.

Below mentioned are some of the applications of AI in the insurance industry.

Fraud Prevention:

AI can be used to quickly identify the well-known patterns of the fraudsters. It can be used to bring to the attention of the insurance companies if any abnormal changes are noticed or deliberately made to the insured asset during policy claim submission.

Better Underwriting:

Pricing plays an important role in insurance policies. AI can be used to create personalized rates, based on the client’s actual choices and lifestyle. Parameters like financial stability, habits, diseases, distance traveled, etc. can be used to create dynamically priced policies. It helps the client to pay less and as per usage.

RPA and AI service providers are going to streamline and revolutionize the insurance sector. Higher efficiency, lower cost, better accuracy, improved regulatory compliance, ready bots, etc. are some of the benefits of the technology.

Are you up to adopt these disruptive technologies? If you are, we can help you implement. If you are still not there, we can help you get there. Get in touch with Synlogics.