AUTOMATED UNDERWRITING IN INSURANCE
What is automated underwriting for the insurance industry and why is it important?
The manual underwriting process can be a thankless occupation at times; complex, nuanced and prone to human error. It's no revelation, then, that the manual process is time-consuming and expensive for human underwriters, eating into your profitability and customer satisfaction. What is needed is a solution that will provide better accuracy, quicker turnarounds, and fewer errors—all without expanding your workforce or burdening your IT department with the rollout of yet another infrastructure.
Enter RPA (Robotic Process Automation)—simple to generate, drag-and-drop, cloud-based, digital robots backed by other supporting technologies, such as AI (artificial intelligence) and machine learning. RPA bots allow you to streamline and automate repetitive portions of your underwriting decisions, leaving human underwriters to handle edge cases and non-repetitive, human processes that cannot be automated.
What are the benefits of automating underwriting for insurance?
Implementing algorithm-driven Robotic Process Automation to augment or replace your existing systems for underwriting can provide numerous benefits for your insurance underwriting processes. When you get the most out of your AI and ML assisted RPA, some benefits you could realize for your insurance organization include:
With RPA, machine learning (ML) and artificial intelligence (AI), you can reduce processing time by eliminating repetitive manual tasks, creating a visible impact on response time for quotes and the issuance of policies.
Digitization of data from different sources and AI evaluation are giving rise to big data and predictive analysis. RPA bots can search hundreds of data sources per potential policy, examining in seconds what would take manual underwriting much longer to cover in order to pinpoint an applicant's risk factors.
Aggregate and integrate data from disparate sources, from paper documentation to multiple legacy and API-based digital systems using automated processes. For example, AARI makes it possible for underwriters to log in to various systems from a single screen, reducing complexity and enabling better time management.
Check each policy against underwriting guidelines and receive instant alerts when something doesn’t match. Using RPA, you will miss fewer potential risks when evaluating an applicant for risk and policy offerings.
By automating the simpler tasks, employees gain time and resources for higher yield areas with more value. Actions like tailoring individual policies, or pricing and managing “mid-risk” applications, are able to move front and center.
With Automation 360, AARI, IQ Bot and other RPA support, your call center representatives can have unified policyholder data across the organization in real-time. Many customer requests, such as updating their policy, can be automatically handled through machine learning (ML), intelligent software bots.
Start your automation journey
Amplify your underwriting productivity by automating processes, reducing manual effort by up to 90%.
Who can benefit from automated underwriting in insurance?
Automation doesn’t have to be limited to the underwriting department. Processes can be quickly managed across the system through a simple interface. Anyone in the organization can access a digital assistant, allowing for use between stakeholders in real-time.
Unsurprisingly, underwriters find themselves at the top of our list. The ability to incorporate such large amounts of data into the process while reducing the time actually dealing with data is a one-two punch guaranteed to transform traditional underwriters into pioneers in the field.
Nothing makes a client feel more at ease with an insurance company than being able to communicate with their insurer and be heard in a timely manner. Intelligent automation makes it possible to be available to customers on a 24/7 basis, answering questions about their policy or claim.
Intelligent RPA enables IT departments to automate support ticket systems and triage and prioritize problems. Our bots can also help with AI driven troubleshooting for end users.
RPA bots can help evaluate marketing and sales strategy for effectiveness and pinpoint where the best efforts would result in the most return. Sales teams can also benefit from automated customer outreach and chat bots that answer questions about products and provide customized pricing.
W&W Gruppe rips through its backlog in record time with RPA
"Our employees understood that RPA really helps them to focus on what’s very important—our customers."
– Christian Wolf, Head of Business Organization and Process for RPA and leader of the Center of Excellence, The W&W Gruppe
Tasks processed by Bots
Months to reduce a 4-year backlog
How automated underwriting can help businesses in the insurance industry
Both insurers and policy holders benefit from the enhanced process provided by automated insurance underwriting. Building bots with Automation Anywhere won't be a one and done process. Once you experience the capabilities inherent with RPA, you will look for ways to layer bots and expand your business capacity far beyond what you thought possible. A few ways you may improve your business processes include:
Risk Assessment/ Management
- Fraud Detection
- Risk classification and evaluation
- Identify skills and natural talent
- Predictive analysis
- Real-time claim tracking during the lifecycle of the policy
- Instant claim reporting
- Billing and account management tools
- Customer education tools
- Reporting for employees and customers
- Personalized pricing
- Alerts to assist human underwriters
- Customer interactions to drive customer satisfaction
- Detect fraud in applications and claims
- Protect personal data for clients
- Automate compliance checks against underwriting rules
- Watch for system intrusions
What to look for in automated underwriting systems for insurance
When selecting a provider for intelligent automation in insurance underwriting there are a few things to keep in mind. A cloud-based provider can extend your capabilities by offering access from anywhere and can enable you to scale quickly. They should be able to handle rapid fluctuations in throughput and give access to different types of bots to perform various, rule-specific, repetitive tasks.
Flexibility is a must. Your RPA solution should be able to integrate end-to-end, bringing together legacy systems, digitized documents, web forms and popular programs. Almost any source you can think of can be included in the robotic task processing.
Ease of use is paramount to make a system intuitive. No-code RPA systems are so simple that virtually anyone can create one. Give your entire staff access to the bots and see what they create to add value and savings to your company.
How to get started with automated insurance underwriting
If you aren't quite ready to jump in with both feet, you can reach out to one of our experienced RPA consultants, and they will give you a demonstration of the system and how it might work for you.