Despite highly mature IT landscapes of German insurance companies, there is a massive need to catch up when it comes to robotics. Large volumes in dark processing and many processes that still need to be handled manually make the industry tailor-made for the use of Robotic Process Automation (RPA). The use of digital robots in the fully automated processing of structured business processes promises insurers time savings of up to 90% and cost reductions of up to 80.
by Thomas Sellner, Head of Software Development, Almato
A vacation is booked quickly. On the Internet with just a few clicks. If only the corresponding insurance confirmation could be obtained just as quickly. But the procedure is like fighting with a bureaucratic time-consuming monster.
Almost bizarre: The tiresome battle is not only waged on the customer side, but also on the company side."
Again, employees struggle through various software systems – from web applications to CRM and industry-specific solutions – on their way to confirming insurance, tediously picking out the different forms required depending on the destination country and reason for travel, and having to put everything together by hand before the documents finally make it into the mail. That's a lot of work for employees, which means annoying – and usually incomprehensibly long – waiting times for customers.
Efficiency advantages through digital robots
And it could all be done in just a few clicks. Robot-based process automation makes it possible. The entire process of sending an insurance confirmation, such as for a foreign insurance policy, can also be handled via Robotic Process Automation, or RPA for short. RPA is the fully automated processing of structured work processes by software, the digital robots. These robots work like a human on the front end, only much faster and more accurately, while documenting everything at the same time.
Companies could reduce processing time for tasks by 80 to 90%."
Because robots, unlike humans, don't make mistakes, they not only make for happier customers, but more importantly help insurance companies meet stringent regulatory requirements for data security and quality and auditability.
While in Anglo-American countries, companies from the financial and insurance sectors have long been using RPA, the use of robotics in this country is still in its infancy. Decision makers find the new technology too abstract. They lack reliable figures and experience values with RPA. However, in view of the omnipresent cost pressure, robots are increasingly coming into focus here as well, and not only in the context of outsourcing negotiations.
Workflow support
RPA solutions can be easily integrated into existing IT landscapes; complex system integrations are not necessary. RPA can be used wherever structured processes are fundamental: Whether for insurance confirmations, online new registrations, processing of contracts in the event of the death of the insured, changes to address data, direct debits and standing orders – everything based on business rules can be handled via robot-based process automation. The robots record the data, calculate the (new) insurance amount if necessary, change the data in all systems and automatically send the (updated) contract to the customer or make it available as a download. Even when the insurance claim occurs, the claim process can be carried out via RPA: Standardized appraisal and repair orders are recorded and then automatically processed further by the robots, confirmation email to the insured included.
Thomas Sellner is Head of Software Development at Almato. The interaction of people and technology has been one of the focal points of interest for many years now.
After studying media and communication informatics at Reutlingen University, he worked at the Fraunhofer Institute IA as a research assistant for the Human-Computer Interaction Competence Center. Thomas Sellner has been working as a software consultant at Almato since 2012 and, as head of software development, has been responsible for the technical management of all software developers since August 2014.
Non-standard processes may have to be outsourced to an employee, but RPA helps here too by having the robots bundle all the necessary documents so that the employee doesn't have to spend time on lengthy searches, but "only" has to make the decision.
RPA is not only applicable in product as well as customer data management by always automatically updating data across all systems, but also in mass processing of billing, claims payments and recourses. Automation via RPA supports compliance rules, as well as reporting, and also helps with the introduction of new products and corresponding campaigns.
RPA as rule-based software is flexible
For insurance companies, against the backdrop of the large volumes in dark processing typical of the industry and the many manual processes, this is tantamount to a considerable optimization potential that only needs to be leveraged. Because, let me assure you, the use of robotics provides significant cost benefits, efficiency gains and more satisfied customers due to faster turnaround time.