insurance BPO

What Insurers Forget When Building an Automated Collaborative Enterprise Architecture

The COVID-19 pandemic has had a cascading effect on almost all industries on how they approach customers, and the processes in play, to service them. Leveraging technology to streamline processes is now quite common and widely accepted. One key change has been the increased adoption of technology, automation, and AI-enabled processes to build collaborative enterprise architecture. 

The year 2023 will witness many new insurance companies embracing automation and AI to improve how they envision their future and their projected growth targets. Key decision-makers have realized the potential of AI-enabled systems and are keen to adopt collaborative enterprise architecture. 

Research indicates that by 2028, the role of AI in the insurance industry is expected to hit the USD 6.92 billion mark, growing at an ambitious CAGR of 24.08%. Again, the key determinant for this switch to AI is not just the ease but also the ability to cover more ground in terms of expanding the business.

Traditionally, personalized insurance services were the responsibility of a large and dedicated workforce that is prone to downtimes and errors. However, An AI-enabled enterprise architecture has effectively transformed this process into a workhorse that never gets tired and is almost always error-free. Another huge positive for AI is the reduction in the time taken to provide this service.

Understanding Uses of Insurance Automation

As AI has become more reliable over the past decade, the insurance industry, too, has taken a shine to its potential applications. Purely traditional insurance processes involve tons of paperwork, vetting claims for potential frauds, and arriving at a resolution after many arduous months of cross-checking and data verification. AI applications tailor-made for the insurance industry have practically given a new meaning to the term ‘prompt and diligent service.’

Automation, with AI as the backbone, has helped businesses grow exponentially while bringing down fraud and commonplace risks. 

Running costs for businesses due to automation has also been reduced considerably. Building consumer relationships and retaining existing ones for long periods of commitment have become relatively better. 

How can AI and automation add value to the insurance industry?

Building on core competence and exploiting the best available tools of the trade is the proven recipe for success for businesses from diverse industries, including the Insurance sector. Staying on top of the market and technological disruptions is what counts in the long run. 

No wonder then, being adaptable to new tech applications, including AI-enabled systems, without ignoring the human touch has become an unstated mantra. Here’s why

Ensuring seamless Claims

Robotic Process Automation (RPA) and Artificial intelligence have come of age to deliver their very best in automating, simplifying, and reducing the time taken to execute many repetitive and complex tasks, including claims process. At the same time, there’s always going to be a need for a human to oversee and monitor the process and ensure the automated system is carrying out quality protocols. 

Risk assessment and reduction

Although possible to be maintained with automated processes alone, verifying client-shared data with a  dedicated person to oversee it greatly minimizes risks and helps formulate a strategy. When clients submit wrong information, either erroneously or fraudulently, it becomes an underlying risk factor that all insurance companies must address. 

Best outlook for providers and clients with Insurance Automation

Insurance companies can:

  1. Effectively detect frauds, reduce risks and human errors
  2. Provide a prompt and seamless experience for more customers 
  3. Reduce time taken to process claims 
  4. Create customized insurance products that are analyzed by AI-enabled applications 
  5. Reduce overall operations costs and grow their business 

Clients can:

  1. Receive quicker resolutions
  2. Faster redressal in case of errors or discrepancies in claims outcome
  3. Benefit from a wider array of useful insurance products that match their expectations

However, although various aspects of front-end automation have been readily adopted, Insurance Back Office services have clearly been given a miss. Customer experience takes a severe hit without reliable and seamless back-office support. 

Understanding Backend Automation

Known as API automation or load automation, Back-end automation uses specially defined, high-capacity transactional programming interfaces. 

Of the numerous advantages of back-end automation, the most sought-after ones include stable and fast operations based on direct data access, higher performance than the front of the screen, and independent of changes in the user interface. A point to be noted here is that users must know where and how data is stored and have some level of web services experience and programming skills. 

Unattended processes like file transfers, database processing, and API-driven applications are best left to automated processes. When automation is in place, businesses can focus more on critical back-end functions while reducing overhead and optimizing resources across the enterprise. 

However, to provide the best customer service, automating existing business processes with the help of an efficient and dedicated team of experts is essential. Human intervention, along with automation, is always desirable to prevent inaccuracies creeping up in data and, in turn, affecting key decision-making.

Human intervention with AI 

Entire back-end operation cannot be entrusted to an AI-supported process, as it could have disastrous consequences as witnessed by quite a number of businesses who relied solely on AI on an experimental basis. 

AI still requires human intervention, although scientists and programmers are trying to innovate further to let AI handle more complex yet repetitive processes.

The Human Touch

AI has been unable to handle ‘critical thinking’ as humans are able to, without a second thought. Keeping in mind the strengths and weaknesses of AI-enabled applications, the balance still tilts in favor of humans. 

Extracting the maximum value from a back-end automation process requires a fine blend of AI and related tech, with a domain expert overseeing and managing it. This combination of man and machine is an unbeatable asset for any organization that wants to scale up the business, cut down on operations costs, and yet maintain excellent client satisfaction.

By 2030, experts predict, AI will be able to handle bigger and more complex processes and also add more value, just like human intervention. Even so, the skills and capabilities of humans will remain indispensable. 
Industry experts agree that there’s immense value in outsourcing insurance backend services that will redirect the trajectory of your business toward profitability and client goodwill. Let us be the one-stop launchpad for all your insurance backend service needs. Contact us now.

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