Insurance is an industry that is highly regulated and is very rich with data that keeps growing every day. Dealing with this vast amount of information in a traditional way is inefficient, costly, and opens many rooms for errors. Lucky are the ones who have long accepted digitalization with open arms, the emergence of Intelligent Process Automation (IPA) is the perfect solution to solve this insurance barrier.
Intelligent Process Automation (IPA) refers to the application of Artificial Intelligence (AI) and related new technologies like Cognitive Automation, Optical Character Recognition (OCR), Natural Language Processing (NLP) and Machine Learning to Robotic Process Automation (RPA). Unlike RPA alone which is limited to repetitive and predefined processes, IPA works beyond basic automation and leveraged AI capabilities to manage unstructured data and make cognitive decisions.
Based on a McKinsey research, companies who have implemented IPA in their workforce have shown 50% to 70% automation of tasks, 50% to 60% reduction in process time, and 20% to 30% decrease in annual run costs. Mckinsey also predicted a $1.5 trillion reduction from automating claims processing with the help of IPA.
The integration of IPA does not mean replacing robots with humans. It only reduces human involvement to decrease errors and achieve maximum efficiency. Its capabilities do not allow to entirely replace the need for a human workforce.
With the rise of the subscription-based model, IPA is beneficial in analyzing customer behavior and data to find key factors to decrease the rate of attrition and retain target customers. It helps with the tedious procedures of insurance including claims processing, regulatory compliance, and commercial underwriting processes.
While IPA and other development in digital transformation offer massive benefits in many aspects, it does not promise instant access to success but provides easier ways in achieving your goals. It takes time and continuous effort in getting the perfect balance of technology and people to deliver the best customer experience and meet the increasing demand for innovation.