The insurance industry has long been criticized for its poor customer service. However, China is a notable exception. In recent years, Chinese tech giants have made remarkable progress in transforming the country into a hub for insurance innovation. A prime example is WeSure, an insurance platform built on the WeChat messaging app, which marked its second anniversary with more than 55 million users. As a result, the primary challenge for Chinese insurers today is not just digital transformation but pushing beyond traditional insurance products and integrating them with other financial services. To stay competitive, insurers are reshaping the industry through the use of Robotic Process Automation.

In the insurance sector, Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS) are critical metrics. Unfortunately, they remain far behind in the United States, where insurers often fall short of meeting customer expectations, particularly as other industries have evolved. Since the claims process plays a significant role in customer satisfaction, let’s explore how RPA insurance bots are transforming costs, operations, and the overall customer experience.

Robotic Process Automation in Insurance

Robotic Process Automation (RPA) is transforming the insurance industry by utilizing desktop-level, front-end software bots that operate without coding to manage routine tasks at the keystroke level. From streamlining underwriting and onboarding for personal and commercial insurers to automating claims management, RPA is reshaping the way insurance companies function, enhancing customer service, reducing cycle times, and cutting operational costs.

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RPA is also the fastest-growing technology in the industry, with the market valued at $199.1 million in 2016 and projected to grow at a compound annual growth rate (CAGR) of 60.5% through 2024. According to P&S Market Research, the global RPA market will reach unprecedented levels. Moreover, the demand for software robots in knowledge work is expected to rise.

RPA is impacting all sectors, including insurance, where it is predicted that large-scale RPA adoption will create new job opportunities. Companies will need to strike the right balance between robotics and up-skilling their existing workforce.

In the insurance industry, RPA refers to the use of software robots that can be configured on any computer without requiring code. These robots assist employees by automating repetitive tasks such as data entry.

RPA in insurance leverages artificial intelligence (AI) to support employees in performing low-value tasks, thereby freeing up their time and energy for more critical work. These robotic assistants can handle tasks that would otherwise be time-consuming and demotivating for human workers.

Similar to Excel macros, RPA bots can operate across multiple systems instead of being limited to a single platform. They can interact with individual data fields in any insurance system, improving operational efficiency across the board.

RPA platforms like UiPath and Blue Prism can perform tasks at the mouse and keyboard level. Once set up, these bots can open applications, transfer data between systems, send emails, and more.

For established insurance companies, outdated legacy systems often lead to inefficiencies, requiring highly paid IT professionals to integrate these disparate systems. This problem—often referred to as the Tower of Babel—creates obstacles for optimization and automation without overhauling the entire IT infrastructure, which is costly and time-consuming.

Newer insurance companies, on the other hand, benefit from using cloud infrastructure from the start, avoiding the challenges faced by older organizations. This gives them a competitive edge in adopting automation technologies.

This is why RPA excites insurance companies—especially large ones. It offers a way to bridge the gap in legacy systems, improving both customer service and back-office efficiency.

Insurance operations often involve complex processes such as underwriting, claims management, and risk analysis. However, with RPA, insurers can enhance these processes, cutting down on data entry and transcription time in legacy systems by as much as 50%.

Reasons to Implement RPA in the Insurance Industry

In the United States alone, the insurance industry loses approximately $80 billion each year due to fraud (Coalition Against Insurance Fraud). It's no surprise that robotic process automation (RPA) in claims processing is gaining traction within the sector.

With service standards and customer satisfaction at stake, there is little margin for error in claims handling, and the cost of ensuring accuracy is high. This is why more insurance companies are turning to RPA to address these challenges effectively.