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Matias Gonzalo Llosas | Insurance Director at everis Mexico

How process automation generates savings for insurance companies and improves customer service

The automation of processes by means of robots (Robotic Process Automation or RPA) is based on software technology which reduces human intervention in the use of computer applications, especially in repetitive tasks which vary very little in each iteration. RPA is a relatively new term, but not its concept. New ways to optimize resources through software, capable of performing specific functions in record time, have been sought for decades.

When we talk about robots we tend to think of heavy machines which perform industrial tasks, mainly in assembly lines. RPA extrapolates this automation concept to computer models which we refer to as software robots, a trend which promotes adding new levels of quality and productivity in the Digital Transformation strategy of companies.

The processing capacity of modern equipment, as well as their highspeed internet connection, enable the rise of this type of automation technology. Not only do they process information much faster than a human being, they can also connect different computer systems as well as create documents, update databases, send emails, and transfer data between applications, etc.

The application of this technology in the processes of the insurance industry is being revolutionized: the management time, the efficiency and the quality of the processes. The applications of RPA to the process of the insurance companies are infinite: quotations, issuance, policy endorsements, application of payments, reconciliations, etc. They reap benefits throughout the whole chain of the different areas: subscription, sales, operations, claims and finance, and providing savings in the operation processes and a differentiated service to the clients, given that it speeds up procedures and does not allow for errors.

There is no doubt that this work philosophy can bring huge benefits to productivity and to the efficiency of the insurance companies, but first, we should review the needs and then, consider a good strategy. It will definitely be necessary to analyze where the insurance companies´ bottle necks are and how they can be solved by means of personalized software applications, in order to finally create and implement the logic of these automated processes.

The inclusion of automated processes in transactional activities optimizes resources, which can be benefit in offering services, the cost structure and the contemplation of the final price strategy; i.e., it would be a mistake to not leverage competitive advantages derived from the automation at the aggregated offer level of the product.

Without a doubt, the implementation of robotics (RPA) has a direct impact on the definition of the role, which performs administrative processes within Insurance Companies; companies which seek to participate in the adoption of this kind of technology should be willing to consider a redesign of the position, which will continue to participate on each level of the process, focusing on tasks, such as process supervision, case analysis, result validation and solution of exceptions. It is also necessary to consider a plan for relocation and integration of resources susceptible to being assigned to tasks with higher added value for the business, which will lead to renovating the resources´ professional profile because fulfilling a transaction profile would not be enough.

It is evident that the adoption of robotics has a direct impact on the internal cost of the operation, nevertheless, if the intention is to generate true operational efficiency, it is necessary to have a complete plan which considers the impact on human capital, technological and process levels to support the change in all these dimensions.

The technological progress has increased the interest in Robotics, it is estimated that 45% of work activities can be automated.

  • There is return on investment in short terms (6–9 months) for certain activities and processes. And in Everis, we believe that we can follow up the implementation without an entrance barrier.

It is clear that it enables companies to speed there “time to market” up: Easy and quick scaling and implementation.

  • Support other initiatives: Continuous improvement processes, process reengineering, etc.
  • It can be implemented in the “cloud”, therefore, it does not depend on the users´ location.

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