Insurance Underwriting using a Smart RDA solution.
Business Challenge
An Insurance Company based in the US is a leading provider of insurance services, offering a wide range of coverage options to individuals and businesses. Despite their strong market presence, they faced challenges in their underwriting process, which was largely manual and time-consuming. They faced the following difficulties regarding their existing Underwriting process.
- Underwriters spent significant time manually entering data from various sources, including application forms and external databases, which were prone to errors.
- Inconsistent underwriting decisions led to potential inaccuracies, risk assessment variations, and regulatory compliance issues.
- Customers and agents experienced delays in policy issuance due to the lengthy underwriting process.
- The labor-intensive underwriting process resulted in high operational costs for the company.
Business Objectives
The company decided to modernize and streamline its underwriting process to improve efficiency, reduce costs, and enhance customer satisfaction. The sought-after solution aimed to attain the following key objectives:
- Enhance the efficiency of insurance underwriting, including multiple stakeholders, and streamline the approval process.
- Enable seamless communication among underwriting, risk assessment, claims, and other relevant departments.
- Strengthen compliance, elevate communication, and ultimately enhance customer experience.
- Minimize manual errors in risk assessment and policy underwriting.
- Boost staff productivity by automating routine tasks and reducing administrative burdens.
- Optimize operational costs by reducing the resources required for manual underwriting processes
Solution
In insurance underwriting, our primary goal was to optimize the underwriting workflow by implementing an integrated solution. This comprehensive approach leveraged Business Process Automation (BPA) principles to ensure seamless engagement with critical stakeholders. We introduced Robotic Process Automation (RPA) bots to automate repetitive and labor-intensive tasks as part of the underwriting process while harnessing AI's power to extract vital data from digitized documents. In summary, the solution achieved the following objectives:
- The underwriting process was redesigned using IntelliBuddies Workflow Designer to create a seamless and standardized workflow. This ensured that all relevant steps were followed consistently.
- Build compliance checks into the workflow to ensure adherence to evolving regulations, reducing compliance risks.
- Buddies were deployed to automate data entry tasks and validate information across multiple systems, ensuring accuracy and efficiency.
- Buddies were trained to extract and process data from scanned documents, such as medical records and financial statements, to support underwriting assessments.
- Buddies interacted with external systems to gather real-time data, such as credit scores and driving records, for risk assessment.
- NLP algorithms were used to analyze unstructured data, including customer emails and claims reports, for insights that could impact underwriting decisions.
Competitive Analysis
By leveraging a combination of BPA, RPA, and AI technologies, the company successfully automated its underwriting process, resulting in increased efficiency, reduced costs, and improved decision quality. The company enhanced its competitive position in the market and provided a better experience for both customers and agents. The solution not only met all the objectives set but also further provided insights on streamlining their existing process for optimization.
- The automation of manual tasks led to a 40% reduction in underwriting process time, resulting in faster policy issuance and improved customer satisfaction.
- The use of AI reduced errors in risk assessment, resulting in more consistent underwriting decisions and lower instances of non-compliance.
- Operational costs were reduced by 25% due to decreased manual labor and increased productivity.
- Customers and agents experienced shorter turnaround times for policy issuance and quicker response times to inquiries.
The integration of RPA and BPA workflows for Insurance Underwriter has notably enhanced our productivity. By automating the manual, repetitive tasks associated with underwriting, our workforce has experienced a substantial increase in their throughput capacity. With faster and more streamlined processing, our team can now handle a larger volume of insurance policy issuance within the same time frame, effectively boosting our overall output. This heightened productivity has allowed us to meet deadlines more efficiently, reduce operational bottlenecks, and ultimately leading to improved business performance and accelerated growth.
