Automation and Claims
Automation has been around for years. This technology has helped many businesses go from being manual to highly automated. However, many argue that the benefits brought about by automation are too great to ignore. Automation is basically the application of systems and technology that improve productivity and efficiency in an organization. By automating some jobs, it's hoped that fewer individuals will need to do those jobs, thus allowing businesses to increase profits and output.
However, not all benefits brought about by automation can be completely trusted. One major claim that many experts make is that there is a reduction in labor costs brought about by the use of robotic process automation. In fact, this argument gained more credence and prominence with the advent of new technologies such as the manufacturing of electronics and machine parts through a computer-aided design (CAD) process. The claims then go on to state that the use of robotic process automation reduces the amount of processing time, which results in increased productivity and output.
While it's true that there is an overall decrease in processing time, this reduction isn't solely caused by the automation of tasks. Instead, it's a combination of factors that have resulted in a shortened period of processing. For instance, many insurance companies have realized that processing insurance claims has become increasingly difficult due to the sheer volume of claims that need to be filed and processed. Through the use of robotics, insurance companies were able to reduce the number of errors that come into their automated insurance claims processing, resulting in increased customer satisfaction and better client retention.
Another area where automation has had an impact is in the area of fraud detection. Traditional processes have relied on the use of human intuition or "gut feeling." However, the increase in volume of automated processes has led to slower processing speeds and decreased profitability. Insurance companies have begun to use sophisticated analytics to help them identify fraudulent activity, which helps them reduce loss prevention and boost fraud deterrence.
Automation has also made claims processing more efficient at a global scale. Automated claims processing has resulted in more efficient transfer of information to agents and providers, as well as more timely claims processing for carriers on both local and international fronts. Automation has allowed for the easy transmission of data across borders and time zones. As a result, there has been a marked reduction in insurance carrier losses associated with outbound traffic and outbound international traffic. Automation has also increased efficiency by removing the need for human agents in order to process claims, which helps to keep operational costs down.
Automation has also enabled insurance firms to leverage its processing power to generate greater profits in other areas. In doing so, insurance firms are able to serve their customers better by focusing on core services. Automation does away with the need for additional staff or consultants as tasks are handled by the software itself. Automation also allows insurance firms to focus on quality rather than on quantity. This results in a reduction in overhead expenses, as well as better customer service.