Insurance will say goodbye to these 3 tedious tasks

Ever since we figured out how to make wheels, we’ve been all about automating stuff to make life easier. The cost of automation and digital technology has declined globally in recent years. Insurance carriers, irrespective of size are realizing that the barrier to new investment in digital technology and automation is lower than ever before.

Insurance industry consultants have estimated that there is approximately 30% wastage involved in existing insurance processes. This inefficiency can show up in different ways, tasks that get done over and over again, workflows that just don’t flow smoothly, delays that make you want to pull your hair out, and resources that aren’t used as efficiently as they could be.

To remain competitive, insurers will have to improve operational efficiency, reduce costs, and enhance overall performance. This is why specific tasks will become fully automated down the line.

These Insurance Back-office Operations Will Get Fully Automated

The Bureau of Labor Statistics says half of the insurance workforce will retire in 15 years, leaving 400,000+ positions empty. And get this — only 4% of millennials are interested in insurance careers, even though they’re set to dominate 75% of the workforce by 2025. Digital technology and insurance automation in repetitive processes are vital in such a scenario.

These are the tasks that are expected to get fully automated:

1. Automating Data Entry to Speed Up Operations

One significant time-saver in insurance process automation lies in data entry. Rather than manually rekeying information from documents into downstream systems, data entry automation solutions step in to handle the heavy lifting.

Intelligent intake solutions excel in accuracy as they don’t succumb to fatigue. Moreover, data entry automation solutions leverage staggered loop learning, continuously improving accuracy over time based on employee feedback. Furthermore, after analyzing documents, intelligent intake solutions can automatically populate up to 80% of the required fields. This accelerates the process and enhances accuracy, ensuring smoother operations overall.

According to McKinsey, about 40% of property and casualty (P&C) carrier expenses are tied up in their top 20 to 30 core processes, such as underwriting. Insurance automation of repetitive tasks has the potential to cut down, and sometimes even wipe out these costs.

Freed from the burden of manual data entry tasks, underwriting and claims professionals can expedite their work and allocate more time to providing exceptional customer experiences.

2. Automated Document Processing

Insurance firms are often inundated with documentation, some of which is crucial for effective risk management but can be intricate and time-consuming to review manually. Automation offers a solution by handling bulk document reviews, allowing employees to concentrate on more intricate issues. Additionally, it ensures that high-priority tasks are promptly directed to the appropriate personnel for human intervention, enhancing both productivity and accuracy in document processing.

Advanced technologies like context-aware optical character recognition (OCR) can scan and interpret human messages, intelligently classifying attached documents and even automating responses or routing emails to the relevant departments.

Automated document processing can be integrated into processes such as policy issuance, claims processing, underwriting, policy renewals, and customer correspondence to enhance efficiency and accuracy.

3. Automating Policy Renewal Workflows

Here’s something to consider: A recent study found that businesses utilizing automated insurance renewal processes boast an impressive 93% success rate in renewing their policies on time. In contrast, those without automated systems, dependent on complex spreadsheets, only had a 60% chance of successfully renewing their policies.

Automating policy renewal can be implemented universally across all policy types or selectively targeted for specific policy categories. The extent of automation in the renewal workflow can cover some or all of these phases:

• Automated Renewal Reminders : Timely prompts before policy expiration.
• Pre-filled Renewal Forms : Automatically populated with existing policy details.
• Dynamic Pricing Algorithms : Accurate renewal premium calculations.
• Instant Renewal Approvals: Quick approval of straightforward renewals.
• Automated Communication Channels : Chatbots handle renewal inquiries.
• Integration with Payment Gateways : Seamless online premium payments.

This article was originally published at: https://www.simplesolve.com/blog/insurance-automation-policy-renewals-data-entry

Originally published at https://www.simplesolve.com.