Digital disruption in the commercial insurance industry is fundamental in the otherwise-soft market with “the winner takes it all” effect. With the market seemingly volatile, as a reflection of hardening in certain segments, there is a huge burden on agents to change their strategies to combat the pressure on premiums and commissions.
“Call it what you will: a firming market, a challenging market, a seller’s market, a disciplined market, an unconventional hard market — North American businesses are paying more for insurance. We predict that rate hikes and capacity constrictions will continue throughout 2020 and likely into 2021. However, we expect a more orderly market to emerge by mid-2020, especially for property,” says The Willis Towers Watson’s report on Insurance Marketplace Realities 2020.
With the situation clear as daylight, call it insider intuition; there is a strong need for automation to speed up account settlements, as customer satisfaction hits an all-time high.
Adapting to digital evolution is a need of the hour in the highly competitive industry to grow profits, meet shareholders’ expectations, and meet the high demands of customers at a minimum cost.
Processing Time:
It is a known fact that most insurance is claimed at the time of misfortune. Speed is the most important entity that makes or breaks the business, and bots can deal with loads of data, verify, and process payments immediately based on rules, amidst challenges.
RPA reduces a 20 day wait time for processing to two-hour real-time processing and payout of cash settlement.
Payment Initiation:
With the effective use of RPA, 50 percent of the insured loss payments are triggered and executed automatically after a risk analysis as against 100% of the payments triggered manually.
Customer Satisfaction:
Companies are obliged to move from high costs and low scalability to increased customer satisfaction, reduced claims-adjustment expenses by ~20-30 percent, and improved accuracy of claims payments by ~4% by cutting down fraudulent activity with the effective implementation of Robotic Process Automation (RPA), according to McKinsey’s compendium “Digital disruption in insurance: cutting through the noise”.