The dynamics of the insurance market are going through a period of rapid change. Since it’s being a highly process-centric industry, insurance firms need to monitor their business processes closely for efficiency, accuracy, and costs. In order to do so, various regulatory laws and regulations are put in place. These compliances ensure that insurers work towards improving customer acquisition strategies, revamping their customer experience, brand loyalty, and product innovation while adopting digital transformation post-COVID-19.
So as to achieve compliance, many insurance companies automated their manual processes using Robotic Process Automation (RPA), intelligent automation, and other technologies. But these implementations leave gaps between the real and expected outcomes. Moreover, several tedious processes require human intervention and can’t be automated fully. To address this automation paradox, insurers need hyperautomation.
A closer look at what hyperautomation is
Gartner in its 2021’s Forecast Analysis found out that the market for software enabling hyperautomation is expected to reach nearly $860 billion with a CAGR of 12.3% by 2025. This increase in demand for hyperautomation is highly driven by the need of insurance companies to attain business and IT process automation. But what is hyperautomation?
Gartner defines the concept as “a business-driven, disciplined approach that organizations use to rapidly identify, vet, and automate as many business and IT processes as possible.”
For an easy understanding, you can consider hyperautomation an umbrella term for the outcome of using and managing multiple technologies, tools, and platforms, such as Artificial intelligence (AI), machine learning, Intelligent Document Processing (IDP), Robotic Process Automation (RPA), low-code/no-code tools, packaged software, and a lot more.
Automation vs. hyperautomation
Considering hyperautomation as an expansion of automation with an added layer of advanced technologies, the below table will give you a clearer picture of the key differences between the two.
3 business drivers for hyperautomation in insurance
Hyperautomation ensures to extend core capabilities of an organization using AI, RPA, and various other advanced technologies. These integrations can benefit an insurer with the following business benefits.
- Increased competition
Over the last couple of decades, a few insurers observed a marginal growth in their direct written premiums while some of them lost their chance to grow as policyholders wanted to explore other options with customized policies.
In order to address this issue, insurers need personalized products and policies to attract new customers and offer delightful customer experiences to the existing ones. Though hyperautomation allows businesses to minimize how frequently a user interacts with the system, it also ensures that whenever a user interacts, the brand delivers a great experience.
- Operational efficiency
Cases like property and casualty (P&C) insurance, natural calamities, and pandemic bring increased losses that undermine underwriting efficiency. With the top line and bottom line impacts, insurers need to leverage business and technology nuances to address the challenges using hyperautomation. In such a situation, technologies can help to make an insurance company’s product and service innovations better by reducing the associated costs and risks. Looking back at the recent events such as the COVID-19 pandemic or any natural disasters, it has become more pertinent for insurers to excel beyond their traditional KPIs, and this can be done by achieving hyperautomation.
- Customer demands
The U.S. Bureau of Labor Statistics predicted that 75% of the workforce will be tech-savvy and hyperconnected by 2030. In such a scenario, it’s imperative for insurers to ensure customer delight. Over the years, it has been observed that insurance companies grow quickly and profitably if they are customer experience leaders.
Hyperautomation allows insurance carriers to reduce error risks while improving the overall processing time, in turn, improving customer service. This advanced approach can, and in some cases already is, benefit the insurance industry in various ways. There are insurers with exemplary hyperautomation examples where they use this brand-new concept for digital underwriting, seamless claims automation, efficient document ingestion, and many other purposes.
Prepare for hyperautomation with Technovert
The insurance sector is at a crossroads, struggling to scale productivity using legacy systems. Additionally, insurers need modernization to meet their customer expectations and achieve exponentially growing operational efficiency. In order to attain these goals, insurance carriers need hyperautomation – the much-needed approach to empower businesses and scale their productivity with strategic automation. Talk to our experts to analyze how you can hyperautomate your processes and get the most out of them.