In this blog, we explore how technologies such as AI, machine learning and Robotic Process Automation (RPA) can improve accuracy and drive operational efficiency in insurance firms. Sharing insights from AutoRek’s insurance lead Piers Williams and accounting expert Mark Baker, it highlights key insights from our Insurance finance and accounting operations best practices webinar.
The opportunity to leverage technologies to transform insurance operations and supplement automation is plentiful.
As Mark highlights, “we are living in an exciting period where we have great technologies” that allows us to “get real-time insights, process more data and provide added value to a business.”
How can AI & machine learning improve your insurance operations?
Machine learning (ML) is a branch of artificial intelligence (AI) which involves computers learning, analysing and identifying patterns in data to make predictions and inform future models.
In terms of insurance operations, these technologies can allow for quicker data processing, better resource planning and better decision making.
As Mark explains, AI such as ChatGPT and copilot enables users to “analyse information and have that at your fingertips”. As such, you can hand over “menial data processing cleansing tasks to technologies and prioritise value-add tasks.”
It is important to note that while “AI lets you do more for less […] it is very much a supplementary and supporting technology”. When applied to a financial control perspective, there is right and wrong: data can either conform, or not, to your control standards. So, “if you have AI make decisions for you, you’re going to introduce the risk of AI error”, Piers says.
However, when used as a supporting technology, AI can improve your insurance operations by:
- Supplementing automation and established technologies in the industry
- Acting as a virtual assistant
- Driving efficiency
- Improving accuracy
- Processing data quicker
Similarly, “there’s lots of interesting opportunities around machine learning from pattern recognition to insights into data”, Piers notes.
How can RPA benefit the insurance industry?
RPA is another example of a cutting-edge technology that is transforming insurance operations.
RPA uses intelligent automation technologies to perform repetitive office tasks of human workers, such as extracting data, filling in forms and moving files. So, RPA can “do the heavy lifting” and “take away those mundane tasks, particularly at the data preparation stage” (Mark).
As Mark further highlights, “technology runs 24 hours a day and 7 days a week”. So, in cases where there is a need for real-time information and where there are large, constant influxes of data, it can be beneficial to leverage RPA.
Notably, RPA has an “evolving deployment and use case within insurance,” Piers says. Traditionally it has been used as an intermediary between systems to help with integration. However, with legacy systems increasingly being replaced, the influx of more open APIs and grater connectivity in systems, it is an evolving space and can be leveraged to a firm’s benefit.
How is cutting-edge technology transforming processes?
Using these technologies can transform your insurance operations by:
- Enabling greater intelligence deployment
- Improving accuracy and validating what you’re doing is correct
- Driving efficiency as an organisation
- Providing recommendations, insights and solutions which can improve accuracy
- Increasing the speed at which you can get to an outcome
- Improving data controls and removing manual risks
How is AutoRek leveraging these technologies?
As a business, we are proactively looking for ways to gather and enhance data more intelligently. While we have fantastic capabilities, we’re always looking to improve.
In terms of utilising technologies, areas of interest include:
- Intelligent data acquisition and transformation
- Increased automated matching rates
- Suggested matches – is there a possibility to “fine tune what we’re providing?”
- Generative reporting – is there a potential to automate reporting outputs?
- AI configuration builder – training AI to build new processes and enhance an existing solution
Key takeaways
- Technologies such as AI, machine learning and RPA have the potential to drive efficiency, improve accuracy and transform insurance operations.
- AI is very much a supplementary and supporting technology.
- RPA can be leveraged to alleviate manual labour and risks.
- AutoRek is proactively looking for ways to gather and enhance data more intelligently.