The insurance industry is overwhelmed with tedious clerical tasks that adversely impact routine operations, such as claim processing, underwriting, policy servicing, etc. As a result, there are delays, inaccuracies, and backlog, which needs to be settled timely, without violating the business regulations.
However, amongst all, one of the major shortcomings of the insurance industry is claim settlement and reimbursements. Five of the common areas where the claim settlement process suffers includes:
- On-time handling of claims
- Claims and underwriting file documentation
- Compliant policy termination notices
- Compliant claims and underwriting disclosures
- Compliant grievance and appeals processes
Talking about the reimbursement cycle, it is one of the resources and time-intensive process that impacts claim settlement. Processing claims, which involves manual, third-party reimbursements are usually carried out by paper communication makes the process slow. The insurance companies exchange the claim information with third-party to ensure that information received from their end matches the company’s records. The entire process goes through long paperwork, followed by the payment.
Reimbursements that are processed manually takes more time and have higher per-claim cost than the automated process. Automating claim processing is known to cost 56% less than the paper claim process. Considering this, insurance companies are turning to technology to ensure that claims are created and handled on time.
While the insurance industry has been slow in adopting technology, it is now growing fast with many of its processes being backed with some interesting tech. One of the technologies that have found some apt use cases in the insurance industry is Robotic Process Automation (RPA).
Robotic Process Automation is a technology that uses a computer software or a robot to emulate and integrate the actions of human interacting with that of digital systems. This helps in automating business processes, which significantly reduces human errors, time, and cost involved in executing any task. These robots interpret, trigger responses, and communicate with the system for automating a variety of repetitive tasks. The best part of these RPA robots is they don’t sleep and make zero mistakes.
READ MORE: Robotic Process Automation: Introduction, Benefits, and Applications
Using RPA or Claim Settlement and Reimbursements
Now that we are aware of the shortcomings of the insurance industry without the use of technology, let’s understand how integrating RPA technology into processes can help to boost the claim settlement and reimbursement cycle.
- Improved speed of transactions and communication with third parties
- Faster communication to third parties about recoveries
- Reduced cycle time and increased cash flow
- Maintenance of low expense ratios
- Improved capture of a multistate business
Robotic Process Automation is one of the promising technologies that’s making waves in every industry. For your insurance business, if automating claim settlement and reimbursement is one your mind, then share your business requirements with our experts having specialization in RPA.
On understanding your business, our experts will recommend processes that can be automated using RPA. To get started, schedule a 30-minute free consultation with our experts who will guide you with relevant ideas and suggestions to make the most of RPA technology.
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