Practical applications for automation in insurance

Automation is a transformative force in insurance, but what do we really mean by automation? At a technical level, it can provide noticeable increases in operational efficiency for those that are able to effectively harness it as an end-to-end tool, particularly in claims handling and underwriting processes. But the value of automation lies not in implementation for its own sake, but in its strategic and practical application. To unlock its full potential, insurers must focus on diagnosing where automation can drive meaningful change, considering the entire end-to-end use case.

Beyond the hype: Automation with purpose

Automation is not a one-size-fits-all solution and can take many different forms. Each organization must assess where it truly adds value, whether through streamlining repetitive tasks, enhancing customer interactions, or enabling better decision-making. A thorough diagnostic approach is essential to pinpoint where processes require automation and where they might instead benefit from optimization or redesign.

For instance, operational diagnostics — such as process mapping and walkthroughs — help identify time-intensive tasks and inefficiencies. This diagnostic phase provides clarity on where automation can drive real results, ensuring investments are targeted and impactful.

Intelligent automation: Transforming operations

The deployment of intelligent automation — encompassing tools such as robotic process automation (RPA) and advanced data technologies — has redefined operational workflows across the insurance value chain. These technologies are not just about cutting costs; they enable smarter ways of working. By automating routine processes such as data entry or claims triage, insurers free up human resources for more complex and value-adding activities.

A practical example is the integration of automated claims workflows, which can reduce processing times by up to 50%. This not only accelerates simple claims but also ensures complex cases are flagged for expert review. Similarly, automating policy administration tasks reduces manual errors by over 50%, boosting both efficiency and accuracy. The ultimate goal is a seamless operational flow that benefits both insurers and their customers.

Enhancing customer experiences

Automation’s impact extends far beyond operational improvements. For customers and partners, it translates to faster service, greater transparency, and more personalized experiences. Automated systems enable instant policy quotes, real-time claims processing, and tailored product offerings, aligning with the UK Financial Conduct Authority’s emphasis on consumer duty and fair outcomes.

Self-service portals, powered by automation, empower customers to manage their policies, update details, and submit claims independently, anytime. This level of convenience was once aspirational but is now becoming an industry norm. By reducing delays and errors in claims processes, automation also fosters trust, delivering more accurate and timely resolutions.

The end-to-end approach

Automation has become a critical tool for leading re/insurers to streamline operations and address challenges posed by complex, time-consuming processes. We have seen examples of leading re/insurers harnessing automation tools to overcome inefficiencies in their claims reconciliation process, for instance by automating the once manual process of journal creation, and including API integration in the process together with automated data validation, ensuring timely and error-free outputs.
Similarly, re/insurers are also harnessing automation to address unreconciled transactions — one company we worked with addressed a backlog of 135,000 unreconciled transactions that previously required manual effort by using a no-touch RPA solution that automates the matching, formatting and validation of claims bordereaux files, significantly improving accuracy and speed. What would have taken years to resolve manually was cleared in seven months, with the solution now embedded as a business-as-usual function.

In another example, a leading reinsurance broker to implement robotic process automation (RPA) to manage the splitting of bordereaux files, which were previously processed manually, again saving significant time and resources, highlighting how automation empowers insurers to scale operations, enhance data accuracy, and redirect resources to strategic priorities.

Leveraging tools like operational diagnostics and workflow solutions ensures that automation initiatives align with broader business objectives. This approach not only maximizes efficiency but also positions insurers to adapt to evolving market demands. However, the key takeaway is clear: an effective automation strategy requires an end-to-end perspective. It’s not enough to address isolated tasks; the focus must be on creating a cohesive ecosystem where automation integrates seamlessly across processes. This involves revisiting governance frameworks, aligning data and technology strategies, and continuously evaluating outcomes.

Preparing for the future

As automation becomes more sophisticated, insurers must stay agile. A phased approach — starting with small-scale automation projects before scaling up — can provide the valuable insights required for assessing larger scaled implementations. Equally important is investing in upskilling teams to work alongside these technologies, ensuring that human expertise complements automated systems.

Looking ahead, the focus will remain on balancing technology with human insight. By adopting a diagnostic, solution-centric approach, insurers can ensure their automation strategies deliver measurable benefits, from operational gains to enhanced customer satisfaction. After all, automation in insurance is not about buzzwords and chasing trends; it’s about creating smarter, more resilient organizations.