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RPA Trends in Insurance Industry
Aditya Kathpalia
Aditya Kathpalia Posted on Feb 21, 2024   |  4 Min Read

The insurance industry has been a laggard in terms of accommodating newer technologies. But, as industry-specific Robotic Process Automation (RPA) gains traction across industries to optimize business processes in order to deliver better customer experience, the technology has found greater relevance in the insurance sector as well. Even though its adoption was slow, it played an instrumental role in revolutionizing traditional and obsolete processes to make them more efficient, accurate, and compliant. With RPA in insurance turning more mainstream, insurers must stay abreast with all the market trends and patterns.

Robotic Process Automation in Insurance

To support this quest, we have compiled a list of emerging trends in Robotic Process Automation in insurance.

6 Key RPA in Insurance Trends to Look Out For

Here are some of the major RPA in insurance trends that are poised to disrupt the industry:

1. Hyperautomation Using AI and ML

Automation in the insurance industry is no longer a competitive differentiator. It is a ubiquitous innovation that is making businesses smarter and more efficient. However, what does stand out is the degree to which this automation has permeated within business processes and workflows.

With Robotic Process Automation in insurance, insurers can supercharge automation to achieve hyperautomation using Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP). RPA-powered hyperautomation allows bots to extract data from text or speech, derive meaning from it, and take appropriate action based on customer profiles, preferences, and past interactions.

2. Increase in Low-Code and No-Code Systems

RPA in insurance was not accessible to all insurers since it required technical experts to develop such systems. Such a requirement was a barrier to insurance companies leveraging RPA to service customers. However, insurance process automation using low-code and no-code systems democratized the technology and empowered insurance businesses of various sizes and digital maturity. As a result, we will witness an increase in such tools and more and more insurers will invest in training their staff to make the most out of no-code and low-code insurance tools. This will also hike up the demand for hyperautomation skills.

3. Better Compliance Using Cybersecurity Automation

The highly regulated nature of the insurance industry has often been a major drawback. However, insurers will now spend less time worrying about compliance, data security, and privacy, and spend more time delighting their customers thanks to automation. RPA in insurance can reinforce cybersecurity by proactively monitoring all security measures and comparing them to the existing rules, regulations, and policies. At the same time, it can detect patterns of threat, intrusion, and compromises, and promptly initiate disaster management protocols. The same applies to fraud as well. Such an automated system of checks and balances helps mitigate risks, enhances security, and ensures compliance.

4. Digital Claims Processing for Increased Accuracy

RPA for insurance has been an invaluable asset in the claims processing value chain. It has helped streamline and automate the claims processing cycle to make it faster, more accurate, and transparent. Activities like data entry, verification, claims assessment, etc., no longer require human intervention and can be performed by autonomous bots. These fast-acting and data-driven bots work with high volumes of data and leverage rule-based evaluation models to deliver quick turnaround times without compromising on quality. The success of RPA in claims processing will go down as a case study to inspire other insurers to follow suit.

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5. Rise of RPA Centers of Excellence (CoEs)

Despite the widespread usage of RPA in the insurance industry, businesses still face issues regarding scaling, standardization, and customization. To address these issues, they are resorting to building Centers of Excellence (CoEs) comprising IT professionals, insurance process managers, functional team leaders, and RPA consultants to take a holistic view of how to best use the technology for meeting business goals. Such CoEs can help oversee the development of RPA across departments and implement cross-functional automation in insurance. While such an innovative approach was used in pilot projects, we will be seeing more of them with the rise of insurance process automation.

6. Integration of Chatbots and Virtual Assistants

Good quality customer service is crucial to thrive in the insurance industry. As such, RPA is transforming insurance customer service through the deployment of chatbots and virtual assistants. RPA, coupled with Gen AI, can be integrated with chatbots and visual assistants to help insurers offer personalized support around the clock. It is also being used for handling inquiries, guiding customers through policy and claims processes, facilitating seamless exchange of data across different systems, etc. It not only improves customer satisfaction but also enhances operational efficiency by automating routine interactions.

Final Words

The global RPA insurance market, which was once valued at USD 98.6 million in 2021, is set to touch USD 1.2 billion by 2031. This jump at a CAGR of 28.3% marks the arrival and consolidation of RPA in the insurance industry. Such a market shift comes as no surprise when one considers the trends discussed above.

Whether it is harnessing low-code/no-code development for insurance process automation or digitally transforming and automating the claims process, the trends underscore the insurance industry’s commitment to efficiency and innovation. So, get in touch with an RPA consultant to know how you can redefine operations and deliver value in this digital era.

Case in Focus

A leading multi-line insurer based in the Caribbean was struggling with a lack of data cohesion. Handling data on a disparate legacy system was becoming increasingly complex, leading to inefficiencies and trapped data. To combat these challenges, we implemented a centralized insurance management system – InsureEdge. We ensured seamless integration of the tool with the client’s accounting system to achieve data consistency and connectivity. As a result, the insurer was able to consolidate data in a single platform, automate business processes, and improve the customer experience. Discover the relevant insights in the detailed case study.

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