The concept of getting insurance is ironic. A policyholder is seeking coverage for an accident or disaster but, at the same time, hopes they won’t need it. Catastrophes inflict costly damages, and in such situations, insurers are expected to provide a seamless experience to their clients.
As with other businesses, insurance providers rely on building and strengthening customer relations for revenues and growth. Fortunately, robotic process automation (RPA) technologies can help insurance companies improve their workflows and service delivery.
For these reasons and more, the global demand for RPA is steadily increasing. The market value for RPA reached USD$7.11 billion in 2021 and is projected to grow to 23.4% from 2022 to 2029.
But how does RPA in insurance affect customer relations in concrete terms? Let’s take a closer look at the topic below.
RPA Robotic process automation innovation technology concept on virtual screen.
- Operational Efficiency Improves Overall Customer Experience
Insurance processes often involve repetitive procedures that include data entry, updating, and validation, to name a few. When a claim is filed, a policyholder notifies the company, then gathers and submits the requirements, which must be verified. A claims adjuster is often sent out to investigate, help validate the claim, and avoid fraud. Regardless, the processing period, which lasts anywhere from a few days to a few weeks, is often frustrating for policyholders.
With RPA in insurance, policyholders can expect a better experience because manual processes in claims processing are partly or wholly eliminated. Instead of entering their data repeatedly, customers can fill out one form and let automation do the rest. Machines can actively seek correct information from unstructured data and validate the information from various sources. This prevents issues like incorrect and outdated customer information, illegible information, and incomplete data that can create problems, most notably claims processing delays.
- Shorter Claims Processes Make Customers Feel Valued
According to Impact Forecasting, worldwide natural disasters by the third quarter of 2022 ballooned to USD$227 billion, of which USD$99 billion was covered by public and private insurance providers. When large catastrophes happen, insurance claims get bogged down by external and internal issues.
The claims process, however, is a significant turning point for customers. Time is crucial when responding to disasters and other unfortunate events. If the clients need to wait before getting their investment back, they will likely get frustrated, switch providers, and tell the public about it.
A 2022 global survey revealed that 31% of auto and home insurance claimants were dissatisfied with their experience because of delays and closing process issues. These are two of the main reasons why buyers switch insurers. The report also found up to USD$170 billion of insurance premiums are at risk in the next five years because of such issues.
To prevent such issues, insurance providers rely on automation to handle error-free and voluminous claims in the shortest period possible. RPA, often used in conjunction with machine learning (ML), computer vision, natural language processing (NLP), and other subsectors of artificial intelligence (AI), can cut processing times dramatically.
A few advanced companies have been implementing touchless claims processing, a fully-automated claims settlement scheme that involves little human intervention. Because of RPA, insurance companies can automate client interactions and keep them in the loop about their claim status. Customers are informed every step of the way and don’t have to wait longer to receive their reimbursement. As a result, they feel valued by the company.
- Advanced Fraud Detection And Accuracy Boost Customer Trust
The financial sector is one of the most common targets of cybercriminals. By hacking into systems and engaging in identity theft, these online fraudsters can access millions, if not billions, of other people’s money. That being said, insurance fraud is one of the primary challenges of the sector.
Insurance companies can integrate AI and ML platforms with RPA to automate and improve big data analysis capabilities. These systems can study data patterns and detect anomalies in consumer behavior and transactions, which could raise red flags. AI and ML can likewise recognize suspicious data patterns that may be considered fraudulent and flag other processes that follow the same data pattern. In some cases, any questionable transaction, including information mismatches, can result in automatic rejection.
Efficient fraud management makes insurance companies and customers less vulnerable to financial losses. Such integrations help assure clients that all transactions are legitimate and their assets are adequately protected across all insurance types, one of the easiest ways to earn their trust.
Final Thoughts
Customers are the lifeblood of any business. And for insurance companies, low premium offers aren’t enough to attract and keep clients. Automating insurance claims is mandatory to provide excellent customer service in the digital era. Eliminating manual processes means more accurate and efficient workflows, leading to faster and error-free claims.
Making clients feel valued and establishing trust are crucial elements of a positive customer experience. It can turn a transactional relationship into a meaningful and profitable one between insurers and their clients.
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