Automation has been a game changer for various businesses including the insurance sector. The emerging technologies, advancements in Machine Learning, Artificial Intelligence (AI), cognitive solutions, the inclusion of latest software and robotics have created endless possibilities for insurance companies to enhance their consumers and customers overall experience and at the same time, maximise their profit margin.
The insurance industry is now steadily shifting towards acquiring digital solutions to stay profitable since the battle of sustaining the market becomes all the more stringent due to regulatory norms and increasing competition. Managing a complex portfolio and sustaining in this competitive market, is a big challenge for the insurance industry. The insurance industry is realising the extreme need of a better relationship with its customer in order to stay competent in the market. Adaption of emerging technology such as Big Data, Automation and drones by the insurance industry has transformed the traditional approach and has made the claim process all the more easier for both customer and insurer. It has enhanced the risk management system and has helped in streamlining the overall operations thereby making it all the more efficient now.
As per the McKinsey Global Institute report 2017, there is 43% of automation potential for insurance and finance industries. It is also estimated that by the year 2025, up to 25% of the task force in the insurance industry may be merged or replaced, especially in operations and administrative support. Currently, the insurance industry is looking at use cases for intelligent automation that will uplift the efficiency of the current processes and reduce the operational costs at the same time.
It is the right time where the insurance companies must run towards automation since the robotic age is already here in the form of various, Robotic Process Automation(RPA). By including RPA into the system, the processes would become quick, efficient, and inexpensive and will provide accurate results, automate the process and enhance the customer interactions that currently have a high level of human involvement. The automation process not only executes high-level dynamic processes, but also has the capacity to make optimal adjustments wherever required.
As it is rightly said, “Make the customer the hero of your story”, it is very significant to offer them the best experience. Today, when the consumers can access any information easily and compare the various insurance products and pricing, it becomes all the more difficult to create personalised and engaging customer experience not only for the new customers but also to retain the existing customers. Automation can be a boon in solving this problem by delivering superior customer experience through robo-advisors and other automation technologies that help in creating more tailored offers and experience to the customers.
Moreover, data collection been a significant part in the insurance sector, insurers must adopt innovative technologies for this purpose. Automated solutions or robo-advisors will help analyse the data and write codes without any human intervention. This solution will let the insurers or brokers to anticipate risk and understand customer expectations and demands in a more detailed manner.
This is not only for the newbies or the emerging companies, but even the highly successful companies must embrace the Digital Era of robots and automation to future-proof their businesses. By adopting automation, insurance companies will be able to enhance the customer experience through the perfect blend of innovation, technologies, information and various business resources.
(Rakesh Goyal, Director, Probus Insurance)