The biggest use case for RPA in insurance, by far, is automating claims processing to improve its quality, speed, and availability. However, another critical RPA use case in insurance quickly gaining momentum is automating compliance activities.
For far too long, compliance teams in insurance companies have struggled with executing day-to-day activities because reactive issues take up too much of their time—time that could be used toward developing forward-looking risk mitigation.In a study conducted by Thomson Reuters, one-third of the firms surveyed said they would spend at least an entire day each week keeping track of the changing regulations. In addition, 69% of respondents said they expect regulators to propose additional rules in the coming year. The industry study also revealed that the lack of coordination between internal functions causes firms to miss opportunities to leverage resources.
The speed and sheer breadth of regulatory change remain a constant challenge for firms. As business needs evolve, becoming more complex, it becomes even more difficult for compliance teams to keep up. The compliance function must change its focus from reactive to proactive to mitigate further risks. RPA in insurance and automating compliance activities will impact how the function is governed, the tools, technology, and analytics it uses; and how it connects with other parts of the business.
Consider the following key forces that are driving the application of RPA in insurance and compliance industry handling:
The demands on businesses and compliance programs are more complex than ever, so doing nothing is no longer an option. Teams must invest in technology, improve processes, and deliberately focus on what the business, risk, and operation functions can contribute to the development of more predictive insights.
The pressure to make a change and introduce robotic process automation in insurance compliance models comes from many directions, including:
The aim of any basic automated compliance program will always be to mitigate risk and comply with the numerous regulations that are specific to your line of business. A modern compliance program that leverages RPA goes beyond the basic objectives and works with new technologies, tools, and practices to generate measurable value for the compliance function.
Regulatory compliance leveraging RPA in insurance can be used for any of the following:
The goals of automating compliance activities as a use case for RPA in insurance should include:
Implementing RPA in insurance helps compliance teams in various key ways. Here are 8 Outcomes of a Modernized Compliance Program that leverages automation:
Blueprint’s Enterprise Automation Suite provides compliance teams in insurance organizations with the modernization tools to transform their compliance programs from reactive to proactive. Blueprint’s Impact Explorer – a core tool in the Enterprise Automation Suite – delivers end-to-end risk analysis so compliance officers can instantly see what’s impacted whenever a regulatory change is introduced. It also provides invaluable mechanisms to coordinate the proactive actions needed to minimize risk and facilitate seamless change management.
Watch the short demo video below to see how you can leverage RPA in insurance and modernize your compliance program:
Image source: Mckinsey Digital, Intelligent process automation: The engine at the core of the next-generation operating model. By Federico Berruti, Graeme Nixon, Giambattista Taglioni, and Rob Whiteman, March 14, 2017.