According to McKinsey, 25% of the insurance industry will be automated by 2025. Indeed, most insurance companies are now using robotic process automation (RPA) in one way or another. While that’s a good thing overall, the current RPA strategy of automating singular tasks within larger processes is leading to the creation of automation “silos.” Such silos may provide immediate tactical benefits, but they also stand in the way of greater organizational efficiency.
That leaves insurers feeling like they’ve hit a new roadblock that needs solving: How can automation weave complex processes together more holistically—and in a way that adds value to the business?
The future of automation in the insurance industry—and the solution to this challenge—is hyperautomation. Here’s what robotic process automation looks like in today’s insurance industry and how hyperautomation takes RPA to the next level.
In many ways, insurance products are becoming commodities. Digitization has made it easy for new players to enter the industry, putting pressure on established insurance firms to drive down prices. As a result, most insurers are looking at how to boost their decreasing profit margins.
Increasingly, insurance products are finding their way into customers’ hands not through insurance professionals but through channel partners—corporate agents, car dealerships, financial advisors, and more—most of whom want the option to deliver insurance products digitally. This is a welcome opportunity for insurance companies, but it also poses something of a challenge: Few companies are well-equipped to build a mass of new digital product configurations, much less to support them. They continue to struggle with:
Insurers that hope to support hundreds of channel partner relationships must take advantage of automation to overcome these challenges.
There’s no doubt that insurers must employ technology to remain competitive—and until now, RPA was the best solution.
But RPA only automates a small piece of a larger task. To solve a complex business problem, you need a holistic automation approach.
The process of issuing insurance coverage is multifaceted and complex—a combination of steps that require both the intelligence and insights of people along with simple decision-making abilities that an RPA bot could handle. Hyperautomation is about automating a process from end to end, orchestrating it all to maximize efficiency.
Some scenarios where you can employ hyperautomation (or “smart bots”) and RPA in insurance include:
If you’re experiencing an efficiency problem or looking for ways to maximize the value of your workers, talk to us at Nividous. We have extensive experience implementing hyperautomation and robotic process automation in insurance and would love to help.
Nividous is one of the very few platforms that offers hyperautomation capabilities—RPA, insurance business process automation, and artificial intelligence—right out of the box. This combination of technologies makes it possible to automate very sophisticated processes (not just single tasks), freeing up your people to do more valuable work. You can avoid the costly strategy of using multiple vendors for automation, and just use one: one platform and one support cost for all your automation needs.
If you’d like to see our platform in action—and talk to us about how it can improve your insurance-related processes—schedule a demo. Or, check out our case studies to see how we’ve helped other insurance companies.