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December 6, 2022

10 Benefits of Using Automation in the Insurance Sector

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It's predicted that the explosion of technology in insurance will make the industry practically unrecognizable a decade from now. Still, current technological advances in the insurance sector are nothing to sniff at. Automation in the insurance industry can improve insurance agency workflow procedures to create a better experience for agents and customers.

Below, we’ll go over what it is, its benefits, and how your agency can use it.

What Is Insurance Automation?

Insurance automation uses technology like insurance system software or tools to complete business processes without manual procedures. Most insurance procedures require providers to complete time-consuming manual processes prone to error and slow results.

Automation in insurance uses advanced algorithms, artificial intelligence (AI), natural language processing (NLP), machine learning, and other technologies to streamline processes. Digital transformation has proven that many insurance processes can be automated efficiently to reduce errors, save time, and improve customer service.

Use Cases for Automation in the Insurance Industry

Intelligent automation solutions streamline various insurance business processes, from customer onboarding to underwriting and filing claims. Automation tools can utilize multiple data sources, reduce human error, and decrease the time commitment required for manual insurance underwriting. Intelligent process automation has a variety of use cases, explained below.

Regulatory Compliance

Insurance agencies are subject to a variety of state and federal regulations. Such requirements are amended frequently to keep up with changing technology and other relevant shifts across industries.

While keeping up with these changes can be difficult, failure to do so results in expensive fines and penalties. AI software can automate compliance checks, client research, and customer data validation. Some systems can even generate regulatory reports and notifications.

Claims Processing

Fast and efficient claims processing is a vital service provided by insurance agencies. Yet manual processes can slow down the entire procedure.

Automation uses robotic processing and AI to speed up the claims process by automating intake, improving data collection, and reducing friction during claims settlement. With the use of claims processing software, insurance agents can automate many of the tasks that typically cause delays.

Underwriting Process

Manual insurance underwriting involves gathering and analyzing information from multiple sources to determine and mitigate the risks associated with the chosen policy. It is a complex and time-consuming process that can take weeks to complete.

By automating tasks like pre-underwriting checks, data collection, loss assessment, and customer claims history review, the process can be streamlined for time reduction and decreased instances of human error. Automating this complex process can significantly cut costs and free up time for agents to concentrate on high-level tasks.

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How Automated Claims Processing Can Help Your Insurance Business

In the insurance sector, claims processing is the moment of truth. Your agency's performance during this crucial task will create or destroy your customer relationship.

Automating the process can result in advantages that improve the process for customers.Claims processing software generates various benefits for agents and customers, outlined below.

Improved Efficiency

From onboarding new customers to filing claims, insurance firms are required to handle large amounts of data. Automation allows agents to collect and process necessary data for efficient claims processing. For example,insurance quoting and software tools eliminate manual data collection processes, allowing agents to provide accurate quotes for potential customers quickly.

Integration of Internal Systems

Legacy systems are common in the insurance sector resulting in slow and inefficient processes. Unfortunately, many new software solutions require agencies to replace existing systems, an upgrade they often can't afford.

By combining powerful AI capabilities with robotic process automation (RPA), bots can use existing user interfaces and integrate workflow processes end-to-end.Integrating insurance solutions improve the speed and accuracy of workflows.

Effective Processing of Unstructured Data

Claims processing requires agents to gather data from multiple sources and enter it into a database. In the past, data collection and processing was a highly manual procedure consisting of repetitive tasks subject to considerable human errors. AI combined with RPA can automate data collection and organization for a customized display to accommodate any workflow.

Reduction of Human Error

Manual processes and repetitive tasks are highly subject to human error. Such errors result in delays in the claims process, meaning slower customer payments.

Automated processes collect data from various sources and input it directly into databases. As a result, more data can be utilized for claims, eliminating human error.

Fraud Detection

Insurance fraud results in considerable financial losses for insurance companies. Automated collection and processing allow agents to gather data from various sources and use algorithms to detect fraudulent patterns. The ability to collect digital data like that from social media can reveal fraud.

Improved Sales Growth

New insurance products and services are necessary to meet customers' needs and develop agency growth. Automation improves data collection to provide improved knowledge about customers' needs in various demographics. As a result, insurance agents can improve marketing targeting measures.

Increased Lead Conversion

Collecting consumer insurance information can be long and result in inaccurate data transfers. This information can come from 100+ data points, making manual collection time-consuming and filled with hassles for customers. An API insurance platform can instantly collect consumer insurance data from online applications to streamline the quote process and lead to more conversions.

Enhanced Customer Service

Manual insurance processes are time-consuming and can present many hassles for potential customers. By streamlining processes and improving data collection methods, insurance agents can deliver an improved customer experience.

When the power of AI is combined with RPA, agents can collect data more efficiently from various data points without repeated interactions with customers. Improved data collection, organization, and processing streamline the claims process and offers faster resolutions for customers.

Accurate Predictions

In the past, historical data was the only way insurance agents could predict global trends and evaluate potential risks. Predictive data is significantly more effective for accurate risk evaluation. When predictive analysis is used during the customer onboarding/risk evaluation process, agents are less likely to face losses during the claims process.

Cuts Costs

Automation improves accuracy, saves time, and decreases instances of error. It's no surprise that these improvements can help agencies reduce costs.

Automated claim intake eliminates the need for agents to interact manually in the process and eliminates errors related to incomplete information. When the data collection process is automated and includes various data types, automation can organize information for quick utilization during the claims process.

How Your Insurance Company Can Get Started

Modern consumers expect convenient digital services that yield fast results. For insurance companies to meet these expectations, insurance agents must utilize new technology to streamline services and improve data collection methods.

While there are complexities involved with automating insurance processes, the benefits far outweigh the risks. Insurance automation meets customers' needs and supports sustainable growth in ways that align with individualized agency goals.

InsurGrid can help you meet your insurance process automation goals. Get in touch with our team to learn more, or start your free trial today.