Driven by the need to improve operational efficiency, enhance policyholders’ experiences, and reduce cost-to-serve, more insurers are deploying automation. Automating repetitive tasks can streamline workflows and allow for data-driven decisions with greater accuracy and speed. However, many insurers struggle to scale these solutions to full implementation. In this blog, we will explore how to move from pilot projects to organization-wide adoption efficiently.
See also: Why Hasn't Insurance Automated More?
Create a Vision
Executives need to start by identifying areas where intelligent automation will have the biggest impact and aligning plans with overall company goals. Instead of prioritizing short-term, tactical savings, this usually entails bigger, long-term objectives. For instance, automation in insurance claims processes reduces errors, fast-tracks settlements, and improves customer satisfaction.
Consider factors such as business process complexity, scalability, workforce readiness, stakeholder engagement, and current technology infrastructure to get the real picture. The goal is to make the business more intelligent, flexible, productive, and competitive.
Assemble the Stakeholders
Without obtaining buy-in from key stakeholders, it is nearly impossible to transform an intelligent automation plan into a living program. So, from the outset, involve people such as senior IT personnel, who can help with many essential issues, including security compliance, auditability, and the supporting infrastructure, configuration, and scalability. Their expertise is vital in ensuring that automated processes, such as claims handling or underwriting, are secure and compliant. Working with IT should be a continuous process to mitigate operational consequences.
Develop the Plan
To automate insurance processes, you should collect the right data during the process definition phase. This requires subject experts as well as a walk-through with the appropriate stakeholders to see how the automated processes will differ from their manual counterparts.
Development commences once the relevant business and process design authorities accept the suggested blueprint. Your strategy should ideally include:
- Clear Objectives: Determine what success looks like to you, along with the metrics that will guide the implementation.
- Technology Selection: Select the right tools and technologies for automation. This may include robotic process automation (RPA), artificial intelligence (AI), machine learning (ML), etc.
- Change Management: Prepare for the organizational changes that automation will bring. Provide for employee training to minimize resistance to change.
- Pilot Testing: Test the waters with pilot projects before committing to a full-scale rollout.
- Scalability Planning: Make sure the insurance automation solution is flexible and accommodates changing business needs.
- Continuous Improvement: Make provisions for regular reviews to assess performance, identify areas for optimization, and adapt to changing business needs or technological advancements.
Execute the Plan
Now that you've developed your strategy, it's time to put it into action. Begin with the pilot project, perhaps automating a specific claims process or policy renewal workflow, and closely track its progress. Collect performance data and obtain user comments. Address any challenges that develop as soon as possible and use this information to improve your strategy.
Once the pilot run is successful, start scaling the automation throughout the organization. This phase includes extending the solution to more processes, such as quote generation, underwriting, and policy management automation, and possibly different departments such as finance or legal. It is critical to maintain communication with all stakeholders, solve any new difficulties, and continuously improve your automation techniques based on feedback and performance statistics.
See also: Why Touchless Claims Is a Must-Have in 2024
Measure and Track
The right key performance indicators (KPIs) provide tangible goals to strive for and clear milestones to track the progress of your initiatives, including aspects like automation in insurance underwriting. The KPIs do more than just measure. They measure what counts. They produce insights that help create a compelling business case for implementing or enhancing automation. KPIs might include metrics like reductions in claims processing time or improvement in customer satisfaction scores. They assist in answering issues such as, "Are we on track to meet our objectives?" and, "Do we need to change course?" With these KPIs, insurance leaders make strategic decisions, drive a culture of automation, and make necessary changes to meet goals.
Conclusion
Scaling automation projects is no small endeavor. However, by embracing automation, forward-looking insurers position themselves to streamline operations and improve customer experiences.
