The thought of filing an insurance claim makes you feel drowned because it takes too long to be processed? Luckily, automation transforms insurance claims processing.
For quite a few years, claims leaders in insurance have been focused on automating as many steps of the claims management process as possible. The modernization of claims platforms and the deployment of chatbots have helped some insurers improve productivity and performance. Artificial intelligence, and document ingestion tools speed up the insurance claims process by reducing costs at the same time.
One of the most critical functions insurance companies deal with is filling the data such as name, policy number, address, time and date of an incident. This data is mostly entered manually and submitted via email or phone. Consequently, the process is slow and contains the risk of many operational errors. Coalition Against Insurance Fraud says that insurance companies pay out over USD 80 billion in fraudulent claims annually. They account for 5-10% of all claims and that’s exactly where Robotic Process Automation (RPA) can help.
Automation in insurance claims processing helps to reduce costs and increase efficiency and accuracy. In this article, we are going to shed light on how insurance companies can benefit from streamlining the claim processing using the Robotic Process Automation.
Automation in insurance claims processing
After the insured person gets into an accident, he files an insurance claim. Later on, the claim passes through the process of detailed inspection to make sure it meets all regulations, which is time-consuming. Thus, for most companies automating insurance claims processing is beyond discussion. The benefits of this emerging technology cannot be overlooked, since it not only speeds up the claim reviewing process but also can determine fraudulent claims.
Automation simply optimized the traditional way of filing claims. Here are some main benefits the automation of insurance claims processing brought:
- Reduced Data Entry. When filing a claim, customers had to fill in forms. Automation eliminates the need of manual data entry since it extracts information from the forms and inputs it directly to the system. Reduced data entry helps the company save a lot of money.
- Completes all Applications. Incomplete data can be a major issue preventing quick claims processing. When the customer tries to complete the insurance claim, a lot of papers are needed. People can easily miss attaching one of the required documents and the claim will not be reviewed. Claims automation in insurance provides a detailed procedure, which doesn’t allow to miss any step.
- Leaves an Audit Trail. Automation makes an audit process a lot easier. The software creates a trail that is easily accessible during audits.
- Eliminates the Need for Storage. Insurance companies should store all the paperwork gathered from manually filed claims for further references. Maintaining a physical archive can be very hard, whereas in an electronic one you have everything on hand.
Have a look at the scheme how automated claims processing in insurance works:
The policyholder starts the claim process by submitting a claim via e-mail or other channels. Later on, the claim is processed by RPA. The claims data is extracted and placed into the claim processing queue. The IQ bot extracts the claims data using machine learning and creates a CSV file from the data such as name, policy number, phone number, address, time, and date of an incident. Then, the claim is passed to a bot that examines it for the signs of possible fraud. Claims with fraud suspicion are placed in a queue for further investigation, others undergo payment procedures.
Insurance claim processing using RPA
The traditional insurance review process requires a lot of manual input and handling. After the insured person files a claim, it should be investigated, reviewed for fraud, and, ultimately, refunded. Insurance claim processing using robotic process automation reduces the risk of false claims in the following ways:
- Processes claims faster;
- Triages fraudulent claims;
- Improves customer satisfaction reducing claim processing time;
- Provides analytics and insights about claims to help the insurance company make better decisions;
According to Statista, only 5% of insurance companies use RPA in insurance claims processing to review claims, while 25% are considering adopting these technologies in future.
The significance of quick and accurate insurance claims processing can’t be underestimated and now we’re going to clarify how automation transforms insurance claims processing.
RPA software automatically flags people suspected of fraudulent activity or inconsistencies in claims and notifies the insurance adjuster. For example, insurance companies reduced the processing time of life insurance claims using RPA systems to streamline broker communication through email automation. It saved 2000 hours of processing time per month, almost all processes were automated and the execution time was increased by 600%.
AI also assists insurance companies enabling them to deal with complicated claims. They can process claims in areas affected by natural disasters. For example, if a home was destroyed by a wildfire, comparing before and after photos, AI can calculate what it will cost to rebuild a home before the insured person files a claim. A similar process will work in telehealth as well.
This speeds up the claims processing as the effectiveness of the AI is beyond question.
Learn how Claims Automation Streamlines the Future of Insurance
As one of the most demanded services, insurance companies are expected to constantly provide improved services at reduced costs. Especially for claims management. With the advancement of technology, insurers are compelled to integrate robotic processing automation and AI into their operations. Of course, it considerably simplifies the insurance processes.
Improved efficiency, significantly reduced costs, filing the claims from everywhere using a smartphone, minimized fraud, enhanced client satisfaction, and promptly resolved claims, this all has to do with the automated claims processing in insurance.
Since we are using smartphones most of the time, it’s also handy even when an insurance claim should be filed. A customer can simply upload required information and documents, which is not only ten times faster, but also more accurate.
Consider Our Company Your Trusted Partner
Dealing with insurance claim software is not an easy issue when you develop it relying only on your resources. Having a trusted partner who will help with researching, planning, and the very development gives you the feeling of support and stability.
If you lack certain specialists or want to delegate the development process to someone who has experience in insurance claim processing using RPA and AI, consider outsourcing to Empeek. We have already dealt with projects including features such as bot programming, different user access levels, exception handling, and analytic capabilities. Such features will be handy for developing the RPA software as well.
In case you’re shortlisting your future partner now, learn about our services here. As a tech company with a strong focus on healthcare and dozens of solutions launched we know how automation transforms insurance claims processing.
Neither insurers nor clients want claims to occur, however, they happen. Consequently, clients want their issues to be resolved quickly and smoothly, whereas, insurers are looking for accuracy, cost-efficiency, and fraud elimination. To make the process less painful, automation in insurance claims processing is here to help.
As for market demand, there’s a great need for insurance companies to automate their claim processing. Those who neglect the automation process in the next few years may not survive because administrative costs will be a lot higher in comparison to their competitors.