Robotic Process Automation (RPA) has been one of the most revolutionary products of enterprise technology in the last few years, stirring the winds of change in the business world by enabling increased productivity at reduced costs, and one which will likely eventually be leveraged in just about every industry. In fact, according to a recent report by McKinsey and Company, it’s predicted that automation technologies, such as Robotic Process Automation, (RPA) will have a potential economic impact of nearly $6.7 trillion by 2025! For now, however, there are three particular industries that are most reaping the benefits of RPA, blazing the automation trail. Lets take a look:
When you take into consideration all of the repetitive and manual tasks that go on behind the scenes at an insurance company, it’s not much of a surprise that this industry is utilizing RPA as a means to change the status quo by enabling insurance providers to manage all the necessary tasks across multiple platforms more efficiently. For example:
Underwriting involves collecting all of the necessary information from all of the various sources in order to properly evaluate the risks associated with any specific policy, and it’s generally a process that takes quite a long time, one that, in fact, causes millions of people just to give up before the process is even complete. Since RPA can automatically collect and process accurate data as it relates to the applicant from both internal and external sites very quickly, the entire process is dramatically expedited. In fact, according to an Accenture report, this type of automation can free up 20-30 percent of “operational capacity,” and this fact alone is already made RPA a game changer in the insurance industry.
- Claims processing
Similarly, the claims process requires the gathering of data from many sources, which is also typically a long and manual customer service operation, not to mention a competitive one. Robotic Process Automation greatly assists insurers to speed up the process after the First Notice of Loss (FNOL) by automatically notifying claims handlers and loss adjusters, in addition to integrating all the various claim information from both sides, and fostering an improved customer experience, no matter what the final outcome is.
Health Care Industry
In the healthcare sector as well, RPA is revolutionizing a wide range of administrative tasks, as well as health services in the field, which is already having a big impact on both healthcare providers and patients. These tasks include:
Adjudication is the process by which when insurance companies decide whether or not they are liable to pay for the services given to patients by providers and it can be a complicated process, and hence, lengthy and expensive. Today, with the help of RPA, since the agreed upon terms of coverage are often commands, a programmer can now write code that automates the process and makes these decisions much quicker. In fact, many health insurers are finding that RPA can increase auto-adjudication rates by 10 to 12 percent, thus further optimizing efficiency, minimizing human errors and keeping costs down.
- In the Field
Healthcare providers are also utilizing RPA tools for a variety of needs in the field as well, including reviews of medical records and the scheduling of daily tasks, reporting problems with medical equipment and even ordering supplies for hospitals and ambulances.
Banks and other financial institutions are also leveraging RPA to reduce the need for database administrators in a variety of daily tasks. The benefits include:
- Operational efficiency
Since RPA can simply replace human workers in many repetitive, high-frequency tasks while reducing processing time, the cost savings can reach 50%-70% for many of these automated activities! Furthermore, since RPA is easily implemented into the existing administrative infrastructure, RPA implementation is less dependent on IT function and gives more flexibility and control over the financial workflows and business processes.
- Increased Risk Management
RPA is also picking up traction in other important areas of banking. Apart from ensuring data quality control, RPA is increasingly being utilized to automate processes of credit and market risk exposure, as well as operational and transactional risk in financial risk management. At the same time, RPA offers unparalleled efficiency in key areas of compliance and risk assessment, while facilitating auditing and reporting processes.
While the insurance, healthcare and finance sectors may be the current trailblazers, they are also offering us a glimpse of how the tools that RPA offers have the potential for widespread implementation across many industries. Indeed, by making companies more efficient and responsive, RPA is set to play a critical role for all companies that strive to stay relevant within an increasingly complex and global marketplace.