5 RPA Use Cases & 10 Case Studies Transforming Insurance Operations in 2024

If you‘re an insurance leader looking to streamline operations and improve efficiency, robotic process automation (RPA) should be on your radar. RPA software bots can replicate human actions to automate repetitive, rules-based workflows across insurance processes.

Let‘s look at the top ways RPA is transforming insurance and real examples of leading insurers achieving business benefits with intelligent automation.

A Snapshot of RPA‘s Potential in Insurance

First, a quick overview of RPA‘s potential impact on the insurance industry:

  • According to McKinsey, insurance has an automation potential of 25% by 2025.
  • The greatest opportunity is in operational processes like underwriting and claims.
  • RPA can save insurers 19% of time on tasks needing human expertise.
  • It can reduce employee time spent on data processing by 34%.
  • RPA can cut policy servicing interaction time by 23%.

So in a nutshell, RPA can free your employees from repetitive tasks to focus on higher value work. This leads to lower costs, faster processes, and improved customer satisfaction.

Now let‘s look at five ways you can apply RPA across insurance processes…

1. Streamline Claims Processing & Fraud Detection

Claims processing is a top area for RPA automation. Collecting information from sources like medical records, accident reports, and property damage assessments is time-consuming for human agents. RPA bots can take over repetitive data lookup and entry tasks to cut processing time significantly.

Here‘s an example RPA workflow for automating claims processing:

  1. Bot triggers when a new claim is submitted (e.g. via online form, email, etc).
  2. Bot collects information from systems like DMV records, police databases, and internal policyholder profiles.
  3. Bot extracts relevant data points from scanned documents using OCR.
  4. It auto-populates claims forms with collected data.
  5. The bot checks for fraud indicators against business rules.
  6. Claims ready for review are routed to adjusters. Suspicious ones are flagged for investigation.
  7. Any policyholder follow-up is automatically triggered by the bot.

According to WorkFusion, this approach reduces claims workload by 80% and cuts process times in half. One major insurer saw a 50% faster resolution using RPA for identity verification and fraud checks.

So if you‘re still relying on manual claims processing, RPA could significantly accelerate cycle times and reduce costs.

2. Improve Underwriting & Pricing with Data-Driven Insights

Insurance underwriting involves assessing risk profiles for coverage eligibility and pricing. There are several ways RPA can enhance underwriting:

  • Data Collection – Bots can pull information from medical records, vehicle history reports, financial data, and court records far faster than employees.
  • Risk Evaluation – RPA can cross-reference applicant data against pre-defined rules and guidelines to automatically detect high-risk scenarios.
  • Pricing Analysis – Bots can pull historical loss ratios, claims frequencies, and other statistical modeling to recommend optimal premiums.

One major health insurer used RPA for rapid underwriting assessments. This helped shrink their process from 7 days to just 4 hours – an 85% acceleration.

So if your underwriting process is still manual and slow, RPA can drive significant speed and quality improvements.

3. Smooth Policy Servicing with RPA Self-Service

Managing policy endorsements, renewals, payments, and customer support can become highly repetitive for servicing teams. RPA bots excel at handling routine inquiries and transactions to optimize service operations.

Here are some examples:

  • Renewals Management – Bots can automatically process policy renewals by cross-checking customer data, generating renewal docs, and sending emails. This could save your team 20 hours per week on renewals.
  • Customer Service – Chatbots can answer common questions on policies, coverages, claims status and more, resolving 60-70% of inquiries without human assistance.
  • Payments & Refunds – Bots can process payments based on defined rules, apply any adjustments, refund overpayments, and send confirmations without an agent‘s involvement.

So don‘t allow policy servicing to remain a manual effort – hand it off to RPA bots improve responsiveness and free your staff to focus on relationship-building.

4. Maintain Regulatory Compliance Without the Headache

From HIPAA to Dodd-Frank, insurance companies face a regulatory minefield. Missing a compliance deadline or requirement can lead to steep fines.

RPA helps automate key compliance processes to avoid missteps and delays:

  • Customer Verification – Bots can validate policyholder identities, beneficiary information, licenses, and other data against fraud databases in real-time.
  • Transaction Monitoring – AI-enhanced RPA looks for suspicious patterns like abnormal payments or withdrawals that could signal fraudulent behavior.
  • Audit Preparation – Bots can compile data from policies, claims, transactions into audit reports and dashboards automatically.

One major health insurer applied RPA to track Medicare transaction compliance. This helped reduce their manual reporting effort by 80% while improving accuracy.

Bottom line – don‘t leave compliance to chance. RPA provides the monitoring, analysis and reporting automation you need to keep regulators happy.

5. Boost Customer Satisfaction with Intelligent Query Handling

Between policy questions, claims issues, billing inquiries and other requests, your teams face a nonstop flurry of customer queries. RPA bots can act as a virtual assistant to handle routine questions and resolve issues faster.

For example:

  • A chatbot on your website can answer pre-sales questions on policy types, pricing, etc. and instantly calculate quotes 24/7.
  • Email bots can scan customer inquiries, provide responses for common asks like proof of insurance and status updates, and route unique issues to the right agents.
  • Bots can access customer data, policy details and rules to resolve billing and coverage questions. For complex problems, they can instantly initiate a callback from a manager.

An RPA system enabled one major insurance firm to resolve 56% of customer emails automatically without an agent. So bots can significantly expand your service capacity.

Those are just a few ways to apply RPA software bots for insurance process automation. But does RPA truly drive results? Here are 10 real-world examples:

CompanyUse CaseResults
Major Health InsurerMember enrollment, claims auditingCut manual labor, reduced errors
Fortune 500 Life InsurerHR processing, physician orders$200k in annual savings
Shared Services ProviderProcess tracking and team communication56% faster email resolution, 38% fewer calls
Bajaj Allianz InsuranceNew policy issuance workflowsImproved efficiency and satisfaction
American FidelityCustomer email managementGreater productivity, accuracy
Hollard InsuranceBroker email automation91% lower costs, 600% faster processing
EXLEnd-to-end claims managementAccelerated resolution, fewer errors
Private InsurerSME quote generationFaster quotes and sales
Major Life InsurerProposal form processingHigher customer satisfaction
Top 10 P&C InsurerQuotes and payouts$500k saved annually

The results across these real-world use cases speak for themselves – RPA delivers transformative efficiency gains, cost reduction, and customer service improvements for insurance operations.

Hopefully these examples have shown RPA‘s potential for your insurance business. Here are my recommendations on capitalizing on intelligent process automation:

Pick The Right Processes – Focus first on rules-based workflows with high transaction volume. Claims, underwriting and policy servicing are prime targets.

Start Small, Then Scale – Prove RPA‘s value through a pilot focused on one localized process before expanding company-wide.

Combine RPA With AI – Look for opportunities to integrate RPA bots with AI for enhanced capabilities like document processing, analytics, and chat functionality.

Manage The Change – Get leadership buy-in and provide training to smooth the transition for employees to working alongside bots.

Monitor ROI Continuously – Track productivity, cost, quality and customer metrics before and after RPA implementation to showcase benefits.

Leverage External Expertise – If needed, partner with specialized RPA consultancies who can help build an automation roadmap and rapidly deliver results.

RPA platforms make it faster and easier than ever to deploy software robots. Companies like UiPath, Automation Anywhere, and Blue Prism all offer cloud solutions you can leverage on a pay-as-you-go basis, often launching your first bot in weeks.

The bottom line is that RPA presents a huge opportunity to streamline operations and leapfrog the competition. By starting today, you can build a fully-automated insurance company of the future.

Hope this overview gives you a better picture of RPA‘s potential. Share any questions below or [connect with me here] to discuss further!

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