RPA Can Save You 15% or MORE on Car Insurance…Everybody Knows That
Well, maybe not on your car insurance, but in the world of back office, many different types of insurance companies face the same efficiency issues. Whether your business is car insurance, property, travel or health, the back office is overwhelmed with a high volume of repetitive processes and frequently changing regulations that make more long-term automation solutions obsolete by the time they are implemented. While some people may still be afraid of the robot revolution or better described as “Co-Bots” (Co-operative Bots), ultimately these bots are not designed to take our job, but to take the “Bot” out of the human and allow businesses to streamline their processes and achieve cost containment for future growth. Now when I say savings of 15% or more in the insurance industry, there is a heavy emphasis put on the MORE for a reason. 15% is an extremely conservative estimate because there are many similar challenges that face the insurance industry and low code, enterprise-grade automation solutions are here to help.
Now let’s look at some real-world examples for the insurance industry and where RPA has made a significant impact reducing data intensive and time-consuming processes:
Policy Issuance: Cross company initiatives like policy issuance are often delayed because they require different departments to complete multiple aspects. Often policy issuance can take over a week manually but can be streamlined by 70% when utilizing RPA.
Claims Registrations: Utilizing RPA, we have seen a reduction in time of over 45% for the registration process. This is often seen because the original contact center handling these calls require a lot of swivel chair operation and dual entry of data.
Policy Cancellation: Companies are seeing Bots improve completion time by over 70% while reducing the need for FTE’s to 1 out of every 10 before.
Form Registration: Form registrations often follow a very documented workflow and as a result also see process improvement of 30-40% but with half the staff it required previously.
No Claims Discount Verification: RPA is very effective at identifying mismatches and reconciling data, this is a high volume low effort process that takes a human about 10 minutes to validate whereas a bot can perform this whole process in less than 2.
Now that we understand that there are a lot of opportunities for RPA within the Insurance industry, there are still many components to a successful RPA implementation. After all, RPA does not balance the equation for a bad process. Having a Six Sigma Lean Process Optimization team is a critical first step to making sure that your organization has the proper streamlined processes in place as well as properly documented. Proper documentation of these processes, beyond just being a best business practice, will save your business a lot of time and money from “consulting companies” to just tell you that you have a bad process (the world is filled with these!)
A second major factor in a successful RPA Implementation is to create a Center of Excellence (COE), or outsourcing becomes a company’s next big question. Some companies are in the mindset that this is not their main business objective and don’t want to have anything to do with it, other’s go all in and try to create a full COE. One thing that all companies utilizing these automation technologies have is a “Head of RPA.” This person will become responsible for delivering the digital workforce and is often from the IT group, they understand workflows and can properly guide between the business and IT. Beyond this, setting up the COE is mainly a question the business needs to answer based on its investment in RPA. The larger the investment in both time, money and ultimately Bots, the more risk a company will incur by not having any internal controls to manage the automations.
Though there are more, the last major component we’ll discuss is to effectively identify and prioritize the best candidates for automation. This must always stay top of mind to recognize better cost containment, as well as prevent your automation teams from being backlogged with non-critical automation needs. While ultimately anything can be automated given enough time or money, spending a month automating a process that takes a human 2 hours to perform, is not the best place to start. Here is Accelirate’s guide to the process evaluation:
Ultimately, if insurance industries can implement RPA in a way that prevents it from becoming siloed between development and operations, you can recognize a lot of small wins, very frequently. In the long run this will allow the business to operate with very high efficiency and get better productivity with a lower bottom line cost. RPA will need to be viewed though like any other major business application and needs to be a part of a larger digital transformation strategy, not a one-off or a band-aid to poorly designed internal processes.