Automated systems can really help insurance brands, but are companies making the best use of the latest data-crunching technologies?
A recent poll conducted among technology teams at insurance firms and MGAs by RDT highlights that insurers are prioritising automation, with claims processing continuing to be the foremost focus, as 81% of respondents identified it as the most critical area. This is followed by policy administration (66%) and fraud detection (53%).
The increasing costs associated with claims have prompted significant action, with an overwhelming 94% of respondents believing that further automating the claims process would be beneficial in helping to manage increasing costs. Respondents to the Poll also pointed to several other key advantages of automation, including improved efficiency (70%), increased productivity (52%), and streamlined processes (52%).
Accuracy and the reduction of errors emerged as significant concerns among insurers and MGAs. 40% of respondents consider a ‘human in the loop’ to be business-critical for automated workflows, underscoring the need for human oversight in automated processes. Only 15% regarded this aspect as unimportant.
However, insurers were also critical of efforts to advance platforms thus far. A significant 85% believe that some areas of the market have rushed into automation without creating an effective, step-by-step enhancement plan for their platforms.
When asked where they seek technological support from, 76% of respondents stated that it is either business critical or very important for it to only be sought from technology providers who have a focus on the insurance sector and possess insurance operational knowledge to support effective implementation.
Joe O’Connor, Deputy CEO of RDT, stated:
“Automation is undoubtedly transforming the insurance landscape, but it’s imperative that insurers and MGAs proceed with a well-thought-out yet agile strategy. The findings from our poll clearly show that while there are significant benefits to be gained from automation, a considered approach utilising flexible technology combined with appropriate oversight is essential to avoid the pitfalls of hasty implementation.
“A human in the loop is not merely a safeguard; it is a vital component in many cases that ensures the integrity and accuracy of automated systems. This integration is not just a theoretical ideal but a practical necessity that is achieved with the right technology. At RDT, we partner with insurers to develop tailored, efficient automation solutions that address their specific needs and challenges, harmoniously blending advanced technology with indispensable human oversight. By doing so, we help our clients achieve the optimal balance between automation and human input, ensuring both efficiency and reliability in their operations.”
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