3 Notable Use Cases for Automation in The Insurance Industry
Posted on: 30 April 2019 by Musab Mohamad
Like any industry, insurers are constantly facing various challenges on how they run their business.
There is a need to optimize their cost of operations, improve their overall accuracy and offer better customer experience.
As expected, insurers are coming up with innovative ways to handle some of these challenges. One possible solution to some of these challenges is Automation which is why companies offering automation services like www.schemeserve.com are fast becoming the popular go-to solution.
However, one thing that you must understand in the quest for automation is this, not every important or complex process in the insurance industry can be handled by automation. Basically, the goal is to ensure a seamless process without driving the cost too high. Over-automation can be a problem as well and since automation costs can be very high, there is a need to be careful and make a smart choice. This means only processes that will offer significant savings while making things easier, in the long run, are the target for automation. Here are some possible use cases for automation in the insurance industry.
Better data management: if there is one industry where paperwork is inevitable, it is the world of insurance. Insurance deal with loads of paperwork on a daily basis pertaining to the process of policy issuing to claims processing. Typically loads of paper documents are handles per day. Relevant data are extracted from these documents manually and stored in digital repositories and databases. However, this process of not only prone to error but can be repetitive and inefficient in the long run, a little bit of intelligent automation to assist the human input might very well help to streamline the process. You can check here to know more about data management.
A smarter media management solution can help read and extract important information from scanned documents using simple techs like OCR, smart references and so on. Machine learning and NLP can help in the process of validating and processing data. This sort of automation can help reduce the present-day heavy reliance on manual handling of paper documents.
Smarter claims handling: One of the major headaches of any insurer is how to automate the process of claims handling to cut down cycle time and boost customer satisfaction. The truth is, not all parts of claims processing can be fully automated as a large part will still require a lot of human input. However, using an automated system, claim request that meets the criteria for automatic handling can be sorted and handled by automated systems while others that require manual resolution can be handled by humans. Automated handling will not only reduce time spent on claims processing and the stress associated with it but can potentially improve fraud detection as well which is one of the major challenges faced in claims management.
Underwriting solutions: underwriting is both a science and an art. Underwriting is one of the most important aspects of insurance. While a huge part of the process of risk evaluation and premium determination will still have to be handled manually, automated systems with predictive models and rules can assist with evaluating risks and making a price submission. These systems can make recommendations which can assist underwriters with making a final decision. Who knows? The future might even see systems that can handle the entire process entirely with little to no human inputs at all.
The insurance industry is constantly faced with challenges and intense competition from within and outside the insurance industry. Using intelligent automated systems can help insurers maximize returns by optimizing costs and improving the accuracy of all process while delivering top-notch services to customers. Of course, some of these systems still require human inputs and might cost a lot to put in place as well, but they are smarter and will contribute to an insurer’s success in the long run when properly utilized.