Expert View: Process automation is the new team player

The challenge of building a responsive and high-growth business fit for the digital age, while optimising costs, is one all insurers are grappling with. Until recently, balancing lower costs with improved customer experience simply didn’t add up. But now, insurers are turning to artificial intelligence and automation technologies and, in particular, Robotic Process Automation (RPA), to transform the art of the possible and rebalance the equation between cost and service.

That’s because RPA’s ability to execute manual back-office tasks can liberate resources to focus on higher-value, customer facing roles. RPA works best handling rules-based, repetitive and high-frequency tasks such as application handling, claims processing and data entry.

Insurers across personal and commercial lines, for example, have set in train pilot projects demonstrating sizeable benefits. These include a 40% to 80% cut in processing times as well as improved quality, auditability and risk management. RPA also enables new digital technologies in the front end to integrate with legacy back-office systems, accelerating the pace of digital adoption. 

Which processes are suitable?

All this is good news. The most successful organisations understand, however, that along with the new opportunities RPA brings, there are limits to how it can be used. While management teams are excited about RPA’s possibilities, it’s essential that their enthusiasm is tempered with a clear view of how RPA is best deployed.

That’s why when it comes to assessing a specific process’s suitability for RPA, leading organisations are not only asking “can we do it?” but also “should we?”.  Not all processes are suitable. Each opportunity requires careful assessment. Isolated projects tend to struggle to achieve buy-in and integration with the wider organisation. A strategic approach is needed. 

Collaboration

An effective RPA strategy needs backing from the top of the organisation. The business must engage in identifying the most suitable candidate processes. Operations and IT must collaborate effectively and work with clear responsibilities. And just as important is managing the ‘robotic’ workforce on a day-to-day basis, measuring its productivity and assessing performance against SLAs to drive continuous improvement. 

Managing the human workforce whose roles may change as a result of RPA is critical. RPA will reduce back-office work, but it needn’t be seen as a threat. If presented as a way to offer people more rewarding, engaging work, it’s more likely to be seen in a positive light.

That’s the approach taken by one UK-based general insurer. By taking time to make RPA an integral part of the team – and even giving robots names – management was able to shift perceptions from RPA as a threat to its acceptance as a valued part of the team. 

Read more on robotics in insurance here

Hammad Rafique has wide experience across L&P, P&C and London Markets in the UK insurance sector, and leads strategy initiatives, transformation programmes and delivery of partner-sourced managed services.