The Future of Artificial Intelligence in the Insurance Industry
Insurance companies are facing rapid tectonic shifts in their business operations as the financial environment changes and new technological advancements are made in the insurance industry. In such a competitive environment, many insurers are restricted to paper-based infrastructures and legacy IT implementation thus limiting their ability to make technological advancements. As new ideas and companies emerge in the industry, insurance companies will have to rely on artificial intelligence (AI) to meet practical uses. This creates a dynamic segue into the future of robotic process automation (RPA), a leading AI mechanism in the insurance industry.
RPA is a sophisticated “software” robot programmed to maintain everyday tasks that were previously handled by humans. The difference between the RPA technology versus a traditional robot is the fact that this software robot is programmed for tasks that are manual, rule-based and repetitive. In terms of being a true “game changer” in the insurance industry, robotic process automation has practical uses too. For example, it can be used in the transfer of coverage details from the product offering system to the policy system to prepare the issuance of the policy. In simpler terms, RPA efficiently connects multiple IT systems and mimics human actions at a user interface to speed up processes. The luxury of RPA is the fact that it compliments other software programs that companies currently use.
How will this impact the insurance industry?
With competition increasing in the industry, insurers are constantly placed in stressful situations to meet shareholder expectations and generate strong profits. Traditionally, insurers invest premiums paid by customers and generate strong returns. However, the current economic condition and volatility in the rates market has created strong headwind for many insurance companies. With major market volatility and competition from private brick and mortar insurance providers, prices have spiraled downwards. Not only that, but bigger tech giants like Google, Facebook and Amazon have accumulated tremendous amounts of data giving themselves the ability to offer customized insurance products based on specific customer profiles at competitive prices. To get an edge over these competitors, insurance companies need to find ways of creating tech-savvy products in the most efficient ways possible.
This is where the use of RPA comes into play for insurance companies facing a potential downturn in the future. With the ability to make quick decisions using RPA, customers can get bigger returns on their investments much faster. Not only that, but RPA helps insurance companies bring down the cost in operations and in turn provide competitive prices to its customers. Robotic process automation has the ability to re-shape the infrastructure of insurance companies by giving employees more time to focus on quality control instead of repetitive operational tasks.
The insurance sector is at a crossroad in terms of meeting the competitive challenges of technological advancements in the industry. RPA can quickly streamline costs, create an efficient operational network and add value for both insurers and the customers.