How Cognitive Automation Can Transform the Challenges in Insurance Industry

Written by Neha Madiya

Digital Marketing Content Writer at Royal Cyber

Automation technology is seeing global transformation across industries, including financial services broadly. However, the insurance sector has been shying away from its adoption. A few companies that have started testing with pilot projects with Robotic Process Automation (RPA) have seen promising results. While RPA is banked upon as the first step in automation adoption, cognitive technologies will soon be driving automation forces. Given this global automated transformation, this blog addresses how the insurance industry will need to modify its operations and adopt a more customer-centric approach to capitalize on the opportunities unbolted through cognitive automation and the newest tech on the block, IQ Bots.

Automation in the Insurance industry:

The insurance industry is still grappling with the complicated legacy systems and implementing newer ways of working while keeping the increasing demand for customer experience. Companies in the developed and developing countries are at an edge by incorporating the latest technologies and transforming their old ways of operations. Finding and retaining top talent in the insurance industry is an ample space now. It is up to you to match up in the race or be left behind.

With that, the most recent technology that best fits in and is shaping the insurance world is IQ Bots. Being aware of the vital technologies in your sector is just half of the story. Being able to implement it most efficiently is what makes your story complete and achieve the desired targets. A well-known fact is that the Insurance industry is document-intensive. But with companies moving towards digitalization, many customers now prefer checking their applications online. The crux of the matter is that it wobbles around cost-savings and efficiency, but the added element is customer satisfaction.

This nosedives into how IQ Bots work and how can they be integrated into the insurance industry?

IQ Bots: What are they, how They work, and why they make sense to the Insurance industry?

Artificial Intelligence (AI) is affecting almost every part of the business in all major industries. Nowadays, different kinds of Robotic Process Automation (RPA) programs, tools, and bots are twirling in the market to help us automate various business processes. The insurance industry is also not untouched from its influence, and many companies have already started using these RPA tools and bots to increase their efficiency.

What are IQ Bots?

As their name suggests, these are artificially intelligent bots with an added touch of intelligence quotient and cognitive capabilities. They rely on machine learning (ML), which means that once you train them to do something on a particular type of data, they learn to do it automatically next time. You can train them once to process a specific kind of data in a specific manner and then forget about it.

What does an IQ Bot do, and How does IQ Bot work?

An IQ Bot automates classification, intelligently digitizes documents, learns on the job, and automates end-end processes. It mixes and matches traditional RPA with cognitive technology to achieve unparalleled levels of Straight Through Processing (STP).

IQ Bot automates business processes that rely on data hidden in electronic documents, images, emails, and more. It leverages multiple AI techniques to digitize and extract data to make your technology even more effective intelligently. IQ Bots work based on learning instances created by you. It keeps learning from your team's corrections and will automatically restructure its activity without any intervention next time. Smart and accurate with time!

Related reads: What can RPA Plus Cognitive Capabilities do?

Why IQ Bots make sense to the Insurance industry?

All insurance companies process a lot of data to settle claims, calculate premiums, and perform other critical business operations. Each of these operations involves different types of data to be processed from various electronic and paper-based sources. That's where IQ Bots can be of great help. Here are some quick use cases which will help you craft your approach towards integration of IQ Bots in the Insurance industry:

  • Claim settlement: IQ Bots help in easy analysis of bills for claim settlement. Checking bills from different service centers, verifying whether they are genuine or not, and then classifying the data requires a lot of effort. IQ bots make this process simple and efficient.
  • Payment processing: When combined with RPA, IQ bots can also automate the payment process for claims. By integrating them with a modern payment processing system, your insurance company can directly pass the relevant data into the system for automated or one-click processing of reimbursements to customers.
  • Customer support: IQ Bot can also be integrated with chatbots to provide high-quality customer support in real-time. They can quickly extract and provide the relevant data to chatbots for answering the queries of customers. It has a high focus on enhancing customer experience and brings in the factor of personalization.
  • Regulatory compliance: Ensuring regulatory compliance requires aligning business practices to comply with the regulations and good reporting as well as record maintenance to be prepared for audits. IQ Bots help in extraction, classification, and quick reporting of data for regulatory compliance of insurance companies. Insurers are required by the regulators to publish their assets under management, claim settlement data, and other financial data monthly, and IQ bots help to make quick calculations and automated publishing of this data.
  • Underwriting: IQ Bots can help speed up and even automate the risk assessment part of underwriting by taking to account various types of data that would otherwise take a lot of time to be extracted and analyzed.

These are just a few of the many possible applications of IQ Bots in the insurance industry. They are proven to be efficient multipliers in any highly competitive industry and face a lack of income from secure financial instruments due to a fall in the interest rates. IQ Bot brings to the table the most advanced AI skillset to revolutionize insurance processing.

Insurers, Are you re-thinking insurance in the light of AI capabilities?

Be ahead in the game with an AI-based document processing platform. Insurance companies and executives must prepare to understand the factors that will affect the changing technology and how AI Artificial Intelligence will reshape claims, distribution, and underwriting and pricing. With this understanding, you can start to build the skills and talent, embrace the emerging technologies, and create the culture and perspective needed to be successful players in the future insurance industry. Get in touch with experts at Royal Cyber today, to plan your strategy and win the game.

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