RPA in insurance:
10 use cases and adoption guidelines

RPA in insurance: 10 use cases and adoption guidelines

January 19, 2023

RPA in the insurance market stats

Scheme title: Deployment rates of modern technologies among more than 100 insurer CIO members of the Novarica Insurance Technology Research Council
Data source: novarica.com—Insurers Actively Adopting Emerging Technology with Clear Value like RPA and Chatbots, 2020

the global RPA market share of the BFSI sector, which makes it the leading segment.

Robotic Process Automation Market Report Grand View Research, 2022

the share of insurance companies that have already implemented RPA in their business processes.

Emerging Technology in Insurance Novarica, 2020

10 RPA use cases in insurance

The range of RPA use cases is growing relentlessly in virtually every sector, and the insurance industry is no exception to this positive trend. Let's take a look at some of the most interesting ways to leverage RPA for insurance automation.

Claims processing

Extracting data in multiple formats from several channels (such as pictures of damaged vehicles, police reports, medical records or certificates), entering it into the corporate database to process claims, and sending quotations manually can be challenging and time-consuming. All these activities can be automated and sped up using software robots.

Real-life examples of RPA in insurance

- 50%

call times

One of Europe's top insurance companies leveraged RPA to halve call center times, reduce administrative workload for customer support, and thus let agents focus on front-office activities.

50%

fully automated purchases

This online insurance shopping platform adopted RPA to automate communications with customers, half of whom can now complete their purchase without interacting with an agent.

-30%

work time

This Abu Dhabi-based insurance provider implemented RPA bots to automate quote generation and policy registration while redeploying employees in decision-making roles.

$80m

in gross savings

Italy's leading insurance company automated over 1,000 processes, including claims processing, through more than 300 RPA robot applications deployed across 25 entities.

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Benefits of RPA in insurance

The adoption of RPA in insurance can positively impact every function of your business and help you achieve a competitive edge in the market.

Improved efficiency

Savings

Superior accuracy

Enhanced regulatory compliance

Easy integration

Better scalability

Improved customer experience

Best RPA platforms for insurance

RPA platforms provide insurance companies with a full spectrum of native functionalities, including low-code/no-code GUIs and monitoring tools, to easily configure their own bots and harmonize their workflows. Here are the current RPA platform market leaders, according to Gartner's 2021 Magic Quadrant for Robotic Process Automation.

Pros
  • Low-code UX app builder
  • Top scalability, customization, and ease of deployment
  • Solid integration capabilities
Cons
  • Financially demanding for small automatization projects
  • Complex pricing policy and service/product offering
Target companies
  • SMEs
  • Large enterprises
Pricing
  • Two packages (Pro and Enterprise)
  • Price on request

Implementation guidelines for RPA in insurance

To catalyze the structural shift towards process automation, insurance companies will need to take into account a handful of key factors, including:

Upskill your staff

New technologies require new skills for proper implementation and functioning. That's why insurance companies should focus on recruiting and retaining qualified IT professionals with proven experience in RPA and related technologies, such as machine learning and natural language processing, or partner with other organizations boasting this expertise. Furthermore, with RPA bots taking over tedious clerical tasks, insurance companies should help their employees develop strategic, analytical and social skills, which cannot be replicated by robots.

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Challenges of RPA in insurance

Insurance service providers should be prepared to face the following issues when planning their RPA implementation project.

Issue

Solution

Limitations of traditional RPAs

Issue

Solution

The majority of insurance workflows follow a pure "if/then" logic, making RPA particularly useful even in its most basic configurations. Old-gen bots, in fact, follow a strictly rule-based approach and can handle structured data like numbers quite well. On the other hand, they may have a hard time facing exceptions and extracting unstructured data from sources like images and videos.

Today's trend among major RPA platforms like UiPath and Automation Anywhere is to combine traditional RPA features with AI-powered cognitive automation so that bots can gain a deeper understanding of the data they process and perform more advanced tasks.
Process fragmentation

Issue

Solution

Automating non-synergistic processes might make them faster, but not necessarily more efficient. So much so that, according to Deloitte's 2022 Automation with intelligence report, immature and fragmented processes represent one of the top barriers to effective automation. Rather, automating single processes without harmonizing the entire corporate workflow might result in new bottlenecks.

Insurance companies should embrace a more comprehensive, end-to-end approach to process automation and standardization, possibly relying on BPM and data analytics tools to identify inefficiencies or redundant procedures and predict the potential effects of RPA-driven process adjustments.
Resistance to change

Issue

Solution

An obsolete corporate culture and the consequent resistance to change can seriously hinder RPA adoption. The three main embodiments of this rather common challenge are employees afraid of job disruptions caused by mass automation, top managers not yet ready to delegate crucial tasks to robots, and stakeholders reluctant to invest in automation.

These issues can be mitigated by enhancing employees’ soft skills with a solid training plan, gradually implementing RPA to highlight the first small achievements, and sharing existing automation experiences and success stories from early adopters.

An opportunity for RPA pioneers

Despite the proven benefits of RPA in insurance and its widespread adoption in the BFSI macro-group as a whole, Deloitte highlighted the fact that the insurance industry has been lagging behind the financial and banking sectors in terms of RPA implementation maturity. Whether it’s the effect of a particularly conservative mindset or a matter of process fragmentation, this low propensity for change may represent both a weak point for this industry and an opportunity for far-sighted companies willing to embark on a challenging but rewarding automation journey. To walk this path safely and turn your insurance company into an automated enterprise, rely on Itransition's team of experienced RPA developers and consultants.