What are the key benefits of automation in the life and health insurance industry? How is AI being implemented in the furtherance of insurance technology? What is the impact of robotic process automation in the life insurance industry?
The world is fast evolving into a digital age and every organization regardless of the industry or sphere of life it is domiciled in looks to automation and new innovations to speed up the work process and invariably increase productivity rate.
The life insurance industry is one that is saddled with so many responsibilities and even with the wealth of experience professionals in this insurance sector possess, there are still lapses recorded.
Insurance needs are growing fast in countries all over the world. More and more persons are beginning to see owning an insurance policy as a quintessential requirement for survival. Today, the number of insurance policyholders in the United States has doubled since 2018. And the numbers are expected to triple by 2023.
With the growing need for insurance coverage by the United States citizens, there is no gainsaying that the life insurance policy needs to adopt automation to meet the demands of individuals who need insurance covers.
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This post reveals areas where automation should be applied in the life insurance industry and the stupendous benefits the industry stands to gain from automating the processes involved in buying and managing life insurance policies.
Tech geeks, life insurance companies, and investors in the industries would be greatly advantaged if they embrace the idea of automation in the life insurance industry and deliver solutions to this end.
Understanding the areas of the life insurance industry where automation is most likely going to fit in or areas where it is desperately needed is a necessary precursor to the benefits of automation in the life insurance industry.
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To this end, let’s take a quick glance through some of the areas where implementing automation will greatly benefit the life insurance industry which would in turn improve the outlook and productivity of the industry and its professionals.
Areas To Be Automated in the Life Insurance Industry
Insurance underwriters are the professionals who assess the risk involved in granting an insurance policy.
They decide whether an insurance company should give out an insurance cover by analyzing the risk involved and the cost of possible claims payment.
The job of an underwriter in the life insurance industry involves checking if the intending policyholder has any serious health challenge if they are eligible for an insurance cover, the creditworthiness of the potential policyholder, possible duplicate policy, and much more.
To complete the process with the highest form of accuracy, an insurance underwriter may use days running into weeks.
But automation can easily access customer details from other registered platforms and give a thorough estimate of the risk involved in granting an insurance cover following predetermined factors. Having robotic process automation in insurance underwriting can make you a leading giant in the insurtech field.
What would normally take underwriters weeks to complete can be actualized with automation in hours. In fact, it can actually be executed in real-time. You can find companies offering underwriting technology that is customized to fit. The need for RPA in insurance underwriting can’t be overemphasized.
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2. Management of Insurance Policies
Another part of the life insurance industry that needs automation is policy management which includes policy issuance and update.
Life insurance companies are saddled with the responsibility of periodically updating the policies of their customers and also communicating the policy changes and updates to them.
Automation can be employed to update customer policies and effectively communicate these updates and expected responses from their customers without involving any manual labor or inference.
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3. Filing, Reviewing, and Resolving of Claims
This aspect of insurance is undoubtedly the most tedious process in the life insurance industry for both insurers and policyholders alike.
Filing, reviewing, and resolving claims can be exhausting, time-consuming, and involves a lot of manual actions. And this greatly hampers the insurance process.
Speedy resolution of claims is essential to the success of insurance companies. To achieve this, automation should be provided for policyholders to quickly file claims and submit necessary documents and proof of covered events while insurance companies should have automated means of reviewing and resolving claims.
Either way, automation would help save both parties the time that is often wasted between the occurrence of a covered event to the time when a claim is filed then to the reviewing and resolution of the claim. Insurers in the UK that embraced technology early are now using robotic claims process automation in the insurance industry
There are so many benefits the life insurance industry stands to gain from automation, especially life insurance. Having looked at some of the areas where life insurance companies need to adopt automation, let’s discuss some of the benefits of automation in the life insurance industry.
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4 Benefits of Automation in the Life Insurance Industry
1. Improved Productivity
We have hammered on this point saliently in this article. With automation, the productivity of companies and professionals in the life insurance industry will be greatly increased. Automating insurance workflows can help your brand to deliver exquisite customer service.
More work will be done in less time thereby necessitating an increase in productivity the very moment insurance automation software begins to populate the industry.
2. Speedy Claims Resolution
The resolution of a claim on an average can take up to a week or two which ultimately depends on how fast the insured files the claim and provides the necessary documents needed for claims review.
The general rule of thumb is that the quicker a claim is filed, the faster it will be resolved. Since automation brings faster solutions to filing claims, speedy resolution of claims is assured also. Automated claims processing can go a long way in boosting the confidence policyholders will have about your brand.
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3. Faster Growth
This is what every industry and business owner wants – Growth!
If the life insurance industry is able to automate the regular, time-consuming manual means of getting tasks done, it would be able to focus on other operations and activities that would help it enjoy growth.
By automating the processes of claims review, underwriting, policy management, call center, e.t.c, life insurance companies are free to attend to other activities that can help them generate more money and in turn growth.
4. Risk Mitigation
Underwriters and insurance companies earn from the remuneration gotten from analyzing the risk involved in providing insurance policies.
If not done accurately, the insurance company and underwriter will be at loss. In order to mitigate these risks on the path of the insurance underwriter and policy provider, there’s a need for the integration of automation in insurance.
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Although, despite the benefits of automation in the life insurance industry it comes with some downsides. One of which is the loss of employment. When automation is integrated into the life insurance industry, more persons would lose their jobs and several others would face similar threats.