The pandemic has given the insurance industry a tough time by putting the workflow into utter chaos. COVID-19 struck with its inauspicious thunder without a warning of lightning. Safe to state, no sector in any part of the world was prepared for this disruption of the workforce and business continuity plans. And as is known, a business progresses only when there is a smooth workflow.
Well, the pandemic has been overstaying its uninvited welcome, but insurance companies need to continue their business. Hence, despite the turmoil ushered by the pandemic, it has also led organisations in the insurance industry to adopt a new technological means of ensuring business continuity, i.e., system automation. So, let’s see how insurance companies integrated system automation into their business infrastructure to sustain themselves in this competitive digitised world.
System automation refers to an integrated software system designed to automate tasks in insurance companies to eliminate the need for human intervention. With in-built AI and ML algorithms, data analytics capabilities, cloud technology implementation, and virtual assistance features, an automated system performs several insurance processes on its own, reducing human labour and offering a better contactless digital experience to customers.
According to reports, due to system automation and complete digitalisation of insurance processes, the pandemic augmented the entire insurance market while growing at 9% the previous fiscal year. Thus, the tough time brought by the pandemic challenged insurance businesses and steered them to use software-based processes for the smooth running of their internal operations, which, in turn, yielded good growth.
Previously, insurance companies paid trivial attention to automation. But it took a pandemic for insurers to start mandatorily adopting technological innovations. So, here’s how system automation can benefit your business.
One of the major effects of the pandemic has been the shortage of human resources. The primary protocol to avoid COVID-19 transmission has been to distance humans from one another and maintain a contactless mode of communication.
So, this is where system automation enters the scenario accompanied by machine learning and artificial intelligence technologies to automatically manage the workflow without requiring a human workforce.
The AI-ML algorithms integrated into these software-based systems can process a large pool of policy data to produce analysis reports on risk evaluation, premium's price determination, etc. These reports allow insurers to make effective decisions without undergoing hectic manual efforts.
These systems can also train themselves on more data and learn from it for more improved output. Thus, it eliminates the need for physical human intervention in product development and keeps the supply chain working to facilitate business continuity.
Managing tasks, with or without the pandemic, has always been one of the biggest challenges of the insurance industry. However, the post-pandemic days have made task management even more challenging due to the sudden interruption in the workflow and management of tasks. Especially, managing repetitive works like data extraction, data updating, data messaging, data validation, and other data processing-based tasks has become difficult.
Thus, task automation has become feasible by adopting software systems integrated with data analytics and cloud computing technologies. The AI-driven model in the Cloud platform facilitates automatic data extraction from the Cloud-stored database, which is further processed and analysed by the data analytics capability of the system.
System automation thus aids claim processing, underwriting, and customer service. In addition, chatbots play a crucial role in automating the customer handling task, leveraging end-user experience.
As the digital world expands and advances, insurance businesses quickly resort to system automation. Business continuity must be present despite the ill effects of the pandemic.
Well, it is essential to recognise how system automation can benefit your business because it will enable your insurance company to maintain an organised workflow and bridge the gaps in their business continuity plan. Therefore, the effective implementation of software system automation is a practice that can no longer be neglected.