Quick wins give your project momentum by driving early value, which is precisely what Intelligent Process Automation (IPA) can do for reinsurance companies.
What Challenges Are Reinsurance Companies Facing?
As the pressure mounts to grow and remain competitive, reinsurers look to areas where they can control their own destiny on the expense side of their business to squeeze as much productivity and efficiency out of those dollars as possible. IPA for reinsurance divisions, combined with other technologies can drive high impact and quick wins that deliver on their promise of results. Although the reinsurance process can be vital to the success of Property and Casualty Insurance (P&C) companies, many have not made the proper investments in upgrading to new technologies and data systems a priority.
As a result, the manual process of data analysis and contract administration in outdated systems has become increasingly difficult to manage and has led to inaccurate outcomes.
Some of the challenges facing reinsurance management teams are:
- The evaluation process is manual, repetitive, and highly prone to human error
- Manual calculation of the total value of a reinsurance contract can be inaccurate and time-consuming
- Outdated systems negatively impact productivity and outcomes
- Increased competition in the marketplace
- Rising costs of operations
Intelligent process automation is a perfect fit for reinsurance divisions because it offers the cognitive abilities of artificial intelligence (AI) and the steady forward progress of robotic process automation (RPA).
What Is Intelligent Process Automation?
Intelligent Automation is a collection of technologies that manage, automate, and integrate a process typically done by humans. Those technologies include solutions that may be categorized under Digital Process Automation (DPA) and as mentioned, RPA, and AI.
IPA mimics the mundane tasks done by humans, freeing up employees to focus on higher-value activities for the business. Over time, the rule-based automations are augmented with decision-making capabilities that enhance efficiency, reduce operational risks, and improve response times. That’s where the true value of IPA comes in.
Quick Wins with IPA for Reinsurance Divisions
What constitutes a quick win? It’s a visible improvement with immediate benefits that can be delivered quickly. They are:
- Easily implemented
- Cost-effective
- Address specific problems
- Start to show results in 2-3 months
Quick Resolution of Customer Issues
Companies introducing automation solutions within their business processes are seeing impressive results.
In the post Emerging Customer Experience Trends In 2021, Johanna Sinkkonen of Lumoa stated:
“Up to 70% of customers who register a complaint will purchase from you again if their complaint is resolved. But, that number of return shoppers increases to a nearly perfect 95% if they felt it was resolved quickly.”
Speedy results in greater satisfaction and automation is a game-changer for busy insurance companies. Sinkkonen goes on to say: “A positive customer experience directly correlates to a business’s success, yielding 20% higher satisfaction rates and 10-15% higher conversion rates.”
Automated Intelligent Process Speed Up Delivery And Enhance Customer Experiences
What might a quick-win IPA look like? Let’s take a reinsurance division where a human processor does treaty and facultative reinsurance management of contract data from disparate systems to provide a “business as usual” service.
With IPA, robots can replace manual tasks (RPA), process and interpret data with rule-based automations to make decisions (machine learning), flag inconsistencies and offer the reinsurance team a dashboard to review specific actions and make suggestions (cognitive agents), and provide real-time tracking between systems and people (smart workflows).
Although the value comes from implementing the complete IPA suite of accelerators and services, reinsurance divisions can achieve significant productivity gains and cost savings in the following ways:
- Automating invoicing and payment processing
- Automating security and fraud detection
The process begins by identifying the best implementation of routine tasks, freeing up human workers to become more efficient. Things like compliance and governance benefit from intelligent processes. Automation of end-to-end workflows also minimizes risk by detecting process anomalies that humans might miss, reducing the risk of human error in routine tasks such as data entry.
Reinsurance divisions can automate tasks like filling out forms, processing claims, evaluating treaty and facultative contracts, and underwriting policies.
What You Should Do Next
Insurers looking to learn more about intelligent process automation can schedule a call. OZ is a leading consulting company whose services and solutions leverage Intelligent Automation to accelerate processes and provide detailed business insights. With specialties in data analytics, artificial intelligence (AI), robotic process automation (RPA), and more, our experts can enhance technology infrastructures to provide accurate reports, inform decision making, and improve job satisfaction. Also, be sure to follow us on Twitter, Vimeo, and LinkedIn to stay up to date on our solutions.