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Hyperautomation for Insurance: Your Roadmap to Modernization

Leslie Loges, Content Marketing Manager
March 29, 2024

What is hyperautomation for insurance? It might sound like just another buzzword, but let’s peel back the layers to see how hyperautomation works.

Imagine this: you go on a deep dive to evaluate your insurance company’s processes and operational models. You discover inefficiencies, lag times, and that your team manages transactions with disparate, often manual processes. It’s clear you need a new solution. 

And the solution you need doesn’t currently exist.

CNA faced this exact scenario when they developed ComPass™ to modernize the underwriting process

In this post, we’ll discuss what hyperautomation is, what it means for insurance companies, and how it differs from standard automation. We’ll showcase some of the problems these advanced technologies solve and touch on specific solutions to help you boost operational efficiency and compete in an increasingly digital-first world.

[Want to modernize your insurance organization? Read more Appian insurance customer success stories.]

Hyperautomation for insurance: connecting siloed processes.

Organizations in the insurance sector around the world all struggle with similar challenges. It’s difficult to connect the dots between siloed systems while wrangling complex local policy requirements. 

And new stresses on underwriting profitability combined with high customer expectations make it even more complicated. 

Customers expect digital engagement, with 41% of consumers saying they’re “likely” or “more likely” to switch providers due to a lack of digital capabilities. But adding digital offerings alone isn’t enough. 

Insurers need to put effective processes in place to overcome challenges with complex legacy systems, inefficient workflows, data silos, and a patchwork of manual processes and repetitive tasks.

How is hyperautomation different from automation?

Hyperautomation is a holistic approach, using multiple capabilities of intelligent process automation and integrating these technologies to optimize complex business processes from end to end. Regular automation only focuses on one standalone process or task. 

A term coined by Gartner, hyperautomation has a wide range of benefits, including increased customer satisfaction, faster claims processing, fewer compliance risks, greater collaboration, decreased operational expenses, and the ability to make better informed decisions. 

Technologies you might incorporate in your hyperautomation process include:

1. Robotic process automation (RPA)

2. Artificial intelligence (AI)

3. Intelligent document processing (IDP)

4. Business process management (BPM)

Let’s look at these four tools and how insurance organizations can use them together and separately.

1. Robotic process automation for the insurance industry.

RPA tools have obvious benefits for insurance processes: they help automate manual tasks to increase speed and efficiency, decrease human error, and save costs. 

But a more hidden benefit of RPA is related to employee satisfaction––by automating more mundane work like administrative tasks, employees are freed up for more challenging tasks that help them move forward professionally.

For insurance firms, RPA can be used to cut down on manual labor and streamline claims processing, appeals, underwriting, policy renewals, and more. It can also help you connect legacy systems that don’t have API functionality to create a cohesive insurance technology ecosystem. 

Clients benefit from improved customer service and a better user experience when handling their own accounts through portals, as do agents and brokers.

2. Artificial intelligence and your insurance company.

More and more, platforms are adding generative AI tools to help users manage their processes, from social media to professional applications. 

For insurance organizations, AI helps make sense of data, get to the heart of your analytics, and even make the most of your low-code development. It can assess and categorize claims, sending them to the right team. It can also analyze documentation for claims to more accurately determine settlements and detect fraud with more precision.   

Wondering where AI fits in your hyperautomation for insurance strategy?

Combining AI with machine learning and robotic process automation tools can be a winning tactic to drive meaningful changes and improve efficiency.

[Ready or not, artificial intelligence is here. Learn practical use cases and ways to mitigate AI risks with our 2024 AI Handbook for Insurance Leaders.]

3. Intelligent document processing for insurance processes.

Intelligent document processing offers a quick, easy, and accurate way to handle all your massive piles of documentation. 

The insurance industry, especially, can benefit from this tool. IDP can digitize information from paper files automatically, reducing the likelihood of error that comes with doing this by hand. 

All you need to do is scan documents into the IDP solution to process them rapidly from data extraction through document verification. 

4.Business process management and insurance optimization.

Ready to bring it all together? Business process management is how you get there. 

Every organization has its own processes and protocols. BPM is the first step and plays a crucial role in your digital transformation. It’s the approach to creating, managing, and optimizing processes with the goal of continually improving business results. 

BPM technology allows you to leverage all the capabilities you need to improve workflows, monitor operations, launch tools to augment productivity, and enhance connectivity for greater access to business insights and growth. 

It’s a critical technique for improving operational efficiency and decision-making processes within the business. 

A more seamless experience for all with hyperautomation.

Hyperautomation helps you streamline operations and overhaul the legacy technology that strangles your team’s productivity, improving their workloads while providing a more efficient customer experience. 

While there are many benefits to hyperautomation, the improvements in user experience can’t be understated. According to EY, 87% of policyholders say their claims experience directly impacts their decision to remain with their insurance provider.

Want to deliver for your customers while improving the process for your own team? 

Hyperautomation gives you the tools to increase efficiency––serving customers at the speed they need––without sacrificing quality or accuracy. In short, it gives you and your customers a better experience in a fraction of the time.

Last, but not least, hyperautomation offers massive benefits in terms of decreasing overhead costs.

In fact, Gartner predicts that organizations can lower operational costs by 30% using hyperautomation technologies and that 65% of large organizations will deploy some form of hyperautomation by 2024.

Ready to learn more about the future of end-to-end connectivity in the insurance industry? Go deeper with our free webinar.

[Discover a holistic method for operationalizing AI across your organization. Download the 2024 AI Handbook for Insurance Leaders.]