5 Impactful Ways IPA is Disrupting the Insurance Industry  

The use of Intelligent Automation (IPA) in insurance is making big waves in a once archaic industry. By operating in a highly regulated environment with demanding clients, insurers advocate the introduction of artificial intelligence into their daily processes. 

To gain a competitive advantage, several insurers have already deployed an automation strategy in areas like new Business Processing, Claims Processing, and Finance. The insurance industry is currently intensively evaluating use cases for intelligent automation in order to increase the efficiency of current processes and thus reduce operating costs. 

According to McKinsey: “IPA can cut the cost of insurance claims processing by up to 30% and a large insurer could more than double profits over 5 years by digitizing existing business.” On that note, let’s quickly understand how IPA is disrupting the insurance industry.  

1. Digitally powering a changing insurance landscape  

The insurance market has become competitive and more robust in recent years with the arrival of online P2P insurers, technology operators, and insurance players. While digitization in the insurance sector is bound to create opportunities, it also presents new challenges for traditional players. 

With low-interest rate scenarios, the income streams of old insurance companies quickly dry up, as premiums from clients investing in different financial institutions do not pay the same returns as in recent years. In the future, these challenges may increase, due to the rapid pace of digitization and changing customer preferences. 

However, insurers who have taken the pulse of the digital revolution and innovated their products and value chain have grown. 

2. Analyzing operations and optimizing business processes 

The insurance industry is taking an approach where it holistically implements intelligent process automation more effectively to improve its performance.  

The whole approach is to analyze end-to-end operations and find new and efficient ways to use automation technologies to optimize business processes. The technology not only liberates the employees from the hassle of doing repetitive, paper-based tasks but focuses more on people-oriented tasks and helps in delivering personalized, top-quality customer service backed by complicated and real-time data profiles. 

IPA can be effectively utilized by insurance companies to scan photographs and analyze and clear damage or settlements in a more effective and quick manner. Nowadays, the use of high-end voice technologies can help bring down the insurance settlement error rates to about 6 percent (which equals that of an average human). The combination of voice analysis and image recognition technology can help an insurer reduce the challenges or complexities associated with adjusting and assessing claims. 

3. Addressing challenges faced by the insurance industry  

Insurance companies face multiple challenges in this increasingly digitized world. Here are some of the main hurdles insurers face: 

Manual Data-Entry  

Insurers suffer from tedious, prolonged, and tiresome activities like collecting and entering data which is done by humans. These processes are expensive, prone to inaccuracies due to human error, and result in slow response times.  

Accommodates Strict Regulatory Standards  

Operating in multiple regulatory jurisdictions, insurers must adhere to evolving rules regarding capital regulation, transparency, reporting, and interactions with clients. Insurance companies can face heavy fines and damage their reputation if they fail to comply.  

Legacy Applications and Miscellaneous Systems  

Insurers’ banking processes are heavily dependent on legacy systems and software. These programs can no longer meet the needs of modern customers and processes. Companies must invest a large part of their budget and resources to implement new technologies capable of meeting these requirements 

Scalability 

Insurers are subject to seasonal peaks which only become more difficult in the event of a large-scale disaster. Such spikes require the complaint process to be efficient and accurate when dealing with a large amount of incoming data.  

Increasing Demand for Better Client Service 

Today’s insurance customers are tech-savvy and have little patience for bad customer service. They expect transparency, customizable options, and fast response times and are ready to go around a large number of competitors in the market if their needs are not met. 

4. Deploying bots for rudimentary decisions 

IPA is already changing the way insurance companies operate. The bot’s hardworking workforce not only emulates repetitive, rule-based transactional and administrative tasks but also handles some basic decision-making levels. Experts in the human domain are therefore free to focus on more strategic tasks involving reasoning, judgment, and emotional intelligence.  

This digital workforce of bots is getting smarter with Intelligent Automation enabled by transformational technologies like Machine Learning (ML), Computer Vision, Artificial Intelligence (AI), and Natural Language Processing (NLP). Typical areas where intelligent automation makes a huge difference are: 

  • Policy Administration and Servicing  
  • Renewal Processing 
  • Claims Processing  
  • Underwriting 
  • Regulatory Compliance  
  • Process and Business Analytics 
  • Sales and Distribution  
  • Finance and Accounts 

5. Future-proofing the insurance industry  

With IPA in the increasingly sophisticated insurance industry, it will provide a cost-effective way to meet rapidly changing regulatory requirements and help businesses focus on long-term strategic issues. AI-based support can reduce documentation times by up to 80%, making insurance companies more profitable.  

Today’s businesses need to rethink how they want to use human potential and how much they can trust a computer to run their operations. In this way, one thing becomes clear: human contact will become paramount in the future, especially when robots will perform most of the repetitive and mundane tasks.  

Although high-frequency products are digitized and automated to a greater extent, it can be difficult to convert existing policies in this new field, it is not only a technological challenge, but the product must also evolve to meet the needs of current market conditions and regulatory landscape. Insurers will need to consider digitization from a broader perspective that includes product innovation, services, and business models. 

Conclusion 

Insurers can profit vastly from Intelligent Automation, and those who have already turned to automated solutions are already seeing the impact. By effectively planning and implementing AI solutions, businesses can transform their operations, reduce costs, increase employee engagement, and improve the customer experience. 

Futran Solutions has partnered with leaders in the industry (e.g. Automation Anywhere) to provide a solution that is rooted in domain experience, built on a solid foundation, and can be scaled incrementally. We specialize in AI and RPA technologies, however, we understand that the critical success factor for automation programs is the domain knowledge about the processes, and not only the technology. 

Futran Solutions has worked with insurtech start-ups as well as global insurance leaders to develop Intelligent Automation solutions for improving business processes. Our team has experience in creating custom automation applications that use visual recognition, machine learning, and other AI tools that simplify the management of routine tasks, whether it’s underwriting, claims processing, or customer experience. 

Futran Solutions is a Digital Technology organization focused on Data Analytics, Cloud, Automation, and New Age App Development. 

How to Balance RPA Risk and Opportunity in Seven Easy Steps

How to Balance RPA Risk and Opportunity in Seven Easy Steps

RPA is helping speed up processes in organizations of all shapes and sizes. It reduces costs and liberates human workers off grunt work to focus on research and innovation. The revolution is rampant in every industry from manufacturing to banking and customer services to research and development.

Today, RPA is one of the core technologies driving turnkey changes in products and services in every industry. Along with other ground-breaking technologies like AI, Big Data, and the Internet of Things, RPA promises to revolutionize things as they are.

Process automation is particularly impactful in banking. Simplified transaction processing means banks can cut costs while they can speed up customer services. In the finance industry, RPA helps streamline NAV calculations and trade reconciliations. In industry 4.0, which is the present industrial revolution we are living through, manufacturers depend on RPA for several applications including inventory rotation and process monitoring.

RPA Risk Dilemma

Multiple companies are skeptical of the impact of RPA on their organizations. Most of them have the perfectly legitimate apprehension of risking the productivity of a stable process by adding new technology. To help overcome the grand RPA dilemma, here are seven easy steps that will help you implement RPA solutions in your organization without having to deal with unnecessary risks.

1. Be Patient

The excitement of process automation can be overwhelming at times. Some companies can barge in head first, trying to automate as many processes as fast as possible. This brings us to the first major RPA risk. Frantically introducing new technology can throw the flow of data and products into disarray, causing disturbances in the workforce.

It’s way better to take out time to analyze what part of organizational workflow will benefit the most from automation. Then, you must plan to ensure that the team understands the role of RPA as well as RPA risks if any in automating the process.

2. Chase Small and Early Successes

In the larger industry equation, RPA is meant to tackle work-heavy and error-prone processes. And it can be tempting for organizations to do just that. However, the best approach is to start small and find a bunch of easy successes.

Starting with a limited scale execution of RPA lets the team understand the technology and reach a certain degree of comfort with it. Plus, it also avoids the risk of needless shipments and customer service. As the team handles more and more automated processes, they gain the experience to handle trickier processes.

3. Simpler the Better

Among the very first steps to executing RPA is to chart the existing process so you can better understand the steps and flow of information. It is easy for teams to become overzealous and try to implement every possible exception in the process. This could be to prove that human intervention is required or that a robot simply cannot handle some core process. Regardless of the nature of the motivation, it is important not to give in.

The wise way to avoid RPA risk here is to start with a process and let the automation handle the typical flow. Follow a case-by-case approach to eliminate the possibility of human intervention for exceptions. Complex rules can always be built at a later stage. In the beginning, follow a simple approach to RPA implementation.

4. Focus on Training

The infrastructure and business process of an organization can be heavily impacted with RPA. Train people rigorously on how the coming process will impact their workflows and methods. The IT team needs to learn the technology – that one’s a given. But the managers and workers cannot afford to miss out on key RPA sessions either.

Ample time and monetary budget must be spent on training the staff of the organization. Treat RPA less like another new technology and more like a digital transformation course. Only then can you overcome the temptation to rush or avoid this part.

5. Keep Communication Open

There aren’t many employees that will say ‘no’ to training. But most employees will also want to know what the training means to them. It is important to communicate to the employees what every training session means to them as well as what their future roles might look like.

Many employees have registered positive responses on automation handling routine tasks in their existing workloads. Some others have experienced the need for upgrading their own skill set to accommodate an automation-enriched work life. Being respectful to the team means that you help them understand the role they have to play in the changing work culture.

6. Assess the Criticality of RPA in Business Success

As new technologies are incorporated into business processes, the flow of energy is immense. RPA can only become a contributing factor in business success when you take time to plan for it. Jump into RPA only after taking clearly defining your objectives. Every potential milestone must be carefully deliberated upon before becoming an official entry into the list of objectives. Lastly, document everything right from the drawing board observations to the achieved milestones.

7. Brave the Bot Change

Automation does not necessarily amount to the cancelation of risk. Organizations can aim to maintain an optimal processes-to-bots ratio. But there is always the risk to threaten the status quo itself with drastic systemic change.

The human teams running the business must strive hike up their knowledge on par with their bots. Find a way to engage and store the automation processes so they can be easily updated and accessed by teams at any place and time. That way, the process can recover in minimum time should automation fall off the grid for any reason. Most importantly, it is the people who must create the best processes for bots. Only this can instill a sense of genuine responsibility among teams.

The above seven ways coupled with a more organic approach can sure achievement of RPA objectives. Plus, you can dive a long way away from any potential risk that the new technology might carry along with it.

Futran Solutions specializes in delivering composite RPA solutions and resources. As Blockchain technology is evolving, so are the resources that shoulder the needs of the industries. Speak to a Futran blockchain RPA specialist today to find out how we help you achieve your business and marketing objectives.

Automation 2020: 9 Key Trends To Watch Out For

Automation 2020: 9 Key Trends To Watch Out For

Automation is not a new phenomenon. It comes with its own baggage of promises of development, prosperity and what not. In today’s world, robots do most of the physical work and that too, at a cheaper rate than humans. But it is also capable of cognitive functions like sensing emotions or even driving. But how quickly would this automation become reality? It is important to know these automation key trends to predict future development.

Automation of activities has enabled growth both at an individual level and at the business level. Will these impact on the employment and global economy?

Here are some of the automation key trends to watch out for in the IT domain in 2020.

Automation of technology to replace humans

The technology used for automation of tasks that once required humans is known as Hyperautomation.

The application of machine learning and artificial intelligence is increasing to automate processes. A range of tools can also be automated in Hyperautomation. It can be also referred to as sophisticated automation.

The main goal of Hyperautomation is to increase AI-driven decision making. This can be achieved by including robotic process automation(RPA) and intelligent business management software (iBMS). While it’s not the main goal, but Hyperautomation often results in the creation of a digital twin of an organization (DTO). This is one of the important automation key trend of all.

Focus on immersive experience.

Technologies like AR (Augmented Reality) and VR(Virtual Reality) come under immersive experience. This is also known as Multiexperience. 

It is far apart from the traditional method of single point interaction. It covers multisensory and multi-touchpoint interfaces like computer sensors. 

For example, Dominos pizza added a smart speaker communication and pizza tracking feature to their app.

Easy access to technical and business expertise

The focus is to gain easy access to technical and business expertise without any extra cost or training. This is often known as Democratization. It is mainly based on application development.

Some of its key factors are data, analytics, and citizen access. Citizen access is also known as design and knowledge. This has also led to an increase in the number of data scientists, programmers and more.

Democratization would enable developers to rather rely on AI-driven development to generate code or automate testing.

Physical human augmentation

Changing or enhancing physical capability is Human Augmentation. A physical capability can be changed or enhanced by implanting or hosting a technology within or on the human body. This is used to enhance a human’s cognitive or physical experiences. 

Human augmentation mainly falls into 4 categories: Sensory augmentation, appendage and biological function augmentation, brain augmentation and genetic augmentation.

Cognitive augmentation enhances the ability of the human body to function, think and make better decisions.

Traceability and Transparency

Ethics, integrity, openness, accountability, and consistency are the five key elements this trend requires. As the evolving technology increases development and prosperity, it also creates a trust crisis.

Most of the times AI and ML are used to make a decision in place of humans. This evolves trust crisis. Such a condition drives the need for ideas like explainable AI and AI governance.

Edge Computing

Edge Computing is a technology where sources of information are placed closer to information processing and content collection. This reduces the latency by keeping traffic local and distributed.

This includes IoT. IoT stands for Internet of Things. Moving the key application and services closer to people and the devices is known as Empowered edge .

Provide Distributed cloud

The goal is to provide cloud facilities to users from outside the physical data centers. No matter if these cloud facilities are from outside the data centers, they would still be controlled by the cloud provider.

All the aspects of cloud service is the responsibility of the cloud provider. Owing to this, cloud centers can be located at different locations. This not only reduces latency but also solve stubborn technical issues.

Semiautonomous to fully autonomous things

The exploitation of AI to perform tasks usually done by humans is performed by Autonomous things. The Spectrum of intelligence ranges from semi-autonomous to fully autonomous things. It includes a variety of environments such as air, sea, and land.

Autonomous things include drones, ships, robots, and other appliances. These things are also used in collaborative swarms. For example, drones can be used in the Olympic games.

Security

Evolving technologies like autonomous things and Hyperautomation, lead to economic development. It also offers transformational opportunities in the business world. However, it leaves security vulnerable.

AI security could be vulnerable and could be a potential point of attack. Security teams must address these challenges and be aware of how AI will impact the security space.

Creativity and strategy are still human skills even though the world is getting automated rapidly. Bots can automate a multitude of designs and admin tasks but cannot automate creative thinking. It’s simply a matter of identification as in which things are done manually and which things need your input and imagination