The situation created by COVID-19 being a health emergency is generating plenty of work for insurance companies, where customers are looking for answers and faster turnaround on insurance claims. Insurers are measured by their effectiveness in handling claims during catastrophes, crises and disruptions. And Insurance companies are struggling to address people, businesses, and other important assets, and finding alternate ways to ensure business continuity, and maintain or enhance service quality with the increase in number of claims related to health, life, travel, trade credit and certain specialty and commercial lines due to the pandemic.orative thinking to further the overall value proposition.
It is no surprise, therefore, that the COVID-19 situation poses a wide-ranging series of challenges for insurers to maintain their operations as normal ways of working become severely disrupted.
Other key changes we can see as part of this new normalcy:
- Remote working: Majority of resources will be choosing to work remotely.
- Cloud platforms: Cloud solutions and applications to expand the range of functions (for communication, sharing documents, admin tasks) to further optimize working from home.
- Digitized systems and automation: Use of robotics and AI – these will likely accelerate and become standard tools for all insurers; move to full automation.
- Compliance & Regulation will come into focus: There will be expedited focus on finding practical, modern world solutions and pressure for regulations and laws to change due to these digital transformations agenda to meet the new normalcy.
- Resourcing models: Offshore service center strategy will be reviewed – to mitigate against concentration risk, insurers may look at spreading their operations across a higher number of locations and perhaps bringing more work back to onshore as well.
Review before transformation?
Operationally, insurance sector by nature is a highly complex business involving multiple processes to administer existing policies, renew policies, price new business, sell new business, address customer inquiries, and process claims. Adding to this complexity is the highly intricate interplay between insurers themselves and their external networks, e.g., brokers and agents.
Due to these unprecedented circumstances, insurance firms must optimize costs, automate and update themselves to sustain business and increase shareholder and policyholder value.
- Optimize internal activities: Cost optimizations wherever possible – in existing suppliers’ contracts, usage and billing by software and network companies.
- Review existing business process: Insurance firms would also need to eliminate the unnecessary labour-intensive operations that go along with managing contracts now.
- Re-evaluate service & resources: Eliminate over-reliance on offshore resources and re-consider a right sourcing strategy based on the nature of operations, For example: a mixture of 20% onshore, 50 % Automation, 30% offshore.
- Update systems & applications: Modernizing legacy systems will enable insurance firms to create product innovations, including flexible premium and usage-based products, get to market faster and push “just in time” products.
- Automate: Consider automation using RPA technology to build use cases to automate the current business model to the extent possible. Transform existing business models before applying digitization. This will help you meet the needs of next-generation users, customers, business partners and help you prepare for the next potential crisis.
Automate the business processes with RPA:
RPA can revolutionize the insurance sector through Insurance automation. The elongated and redundant workflow, which is common in the industry, can be eliminated. Early adopters will gain a competitive advantage over that of slow adopters. Intelligent Automation solutions can assist organizations in successfully driving value throughout these challenging times, and amid the opportunities they present.
So, keep your innovation engine on, While the industry had already made big strides towards digitization, Covid-19 encouraged all the players to expedite the digital transformation journey. RPA can provide the edge over your competition with reduced cost and improved efficiency and considering the value it gives to your business, you can surely get a good ROI within months of investment. It is time you switch to smart Automated operations.
At KTech Products, we specialize in innovating, automating, and transforming both business processes. We help organizations by formulating strategies for cost optimization through RPA enabled digital transformation programs. We build and run both “Unattended” and “Attended” intelligent automations which can automate key business processes, thus helping you save millions of dollars spend. Contact us to find out how we can help you.