Top Benefits of Insurance Automation

The significance of cloud computing in the current technology landscape is evident from figures like - 100% of cloud-powered companies have improved decision making through cloud transformation .

“As insurers look to increase their focus on the customer to reinvent their businesses, they’re moving to cloud-based systems to enable their strategy. But they shouldn’t view these transformations as an end in themselves. Instead, their real strategic purpose is to facilitate internal and external integration, speed to market and IT.”?

A considerable aspect of utilizing technology automation in insurance processes is to save time and effort while reducing the probability of errors. However, the rate of adopting automation in day-to-day operations has been relatively slow.

Reasons for the Slow Rate of Adoption of Automation in Insurance

Organizations face multiple hurdles on their way to incorporating automation in their daily operations. Some of those include:

Complex Processes

Insurance procedures often revolve around complex tasks that require human intervention. Implementing automation becomes a challenge due to the meticulous decision-making involved in ascertaining the creditworthiness of the process.?

Regulatory Obligations

The elevated levels of regulations involved in the insurance sector make automation implementation a strictly regulated procedure, slowing down the adoption rate.

Legacy Systems & Modernization Costs

Traditional computing systems that were developed before the dawn of the digital era are still being used by many insurance providers. Integrating automated processes into such older systems is an expensive and time-consuming ordeal.

Customer Traits

Being a relationship-driven vertical in the financial sector, insurance customers trust human interactions over automated systems. Creating trust in automated processes is a challenging task.?

5 Notable Business Benefits of Insurance Automation

While highlighting the perks of digital disruption in the insurance sector, McKinsey & Company stated - “Automation can reduce the cost of a claims journey by as much as 30%”. The other major benefits are:

Improved Business Quote Intake

While submitting their risks for quotes, brokers generally use their forms. Such forms may need more complete information. However, applying intelligent automation can process any format of information and upload it into the system. It can also determine the risk to be quoted and assign it to the appropriate underwriter.

Damage Assessment and Invoice Processing

Insurers need to access a large volume of clients' medical information from their healthcare providers, available in varied formats. Utilizing intelligent processing, the information can be fed to the system to ensure its effective transfer to the underwriter. Automated procedures are applied for claims assessment and payment processing.

Predictive Insurance Intelligence

Targeted AI or ML-based tools deliver predictive insights to insurers that optimize operations significantly, classifying and evaluating commercial businesses better.

Disaster Analysis Appraisal

AI can be used to analyze and accelerate the process of appraisal in an insurance company. The necessary satellite data is used for an effective analysis. It often involves using photos of the disaster or damage to predict the repair cost.

Contact Center Support Optimization

Companies are increasingly using conversational AI, popularly known as chatbots, to ensure that customers have ready access to support, where or when needed. Operational costs are effectively reduced, ensuring optimum customer satisfaction.?

How Can United Techno Assist?

Team United Techno enables companies to transform workflows and achieve their goals with intelligent solutions. Our years of technical and industry experience, SaaS solutions, or other customized offerings enable us to find the appropriate automation stack for:

• Streamlining workflows
• Policy management
• Handling frauds
• Building product stacks and more

As is the case with other industries, insurance is bound to incorporate all the available features of automation gradually, no matter the slow start. Upon correct implementation, automation streamlines operational and administrative processes to generate a higher ROI.