A recent poll conducted among technology teams at insurance firms and MGAs by RDT highlights that insurers are prioritising automation, with claims processing continuing to be the foremost focus, as 81% of respondents identified it as the most critical area. This is followed by policy administration (66%) and fraud detection (53%).
The increasing costs associated with claims have prompted significant action, with an overwhelming 94% of respondents believing that further automating the insurance claims process would be beneficial in helping to manage increasing costs.
Respondents to the poll highlighted several key benefits of automation: improved efficiency (70%), increased productivity (52%), and streamlined processes (52%).
Insurers and MGAs expressed significant concerns about accuracy and error reduction.
40% of respondents consider having a ‘human in the loop’ as crucial for automated workflows, emphasizing the need for human oversight. Only 15% found this aspect unimportant.
Insurers criticized the current efforts to advance platforms. A notable 85% believe that some market areas have rushed into automation without an effective, step-by-step enhancement plan.
When asked about technological support, 76% of respondents stated it is business-critical or very important to seek support only from technology providers who focus on the insurance sector and possess relevant operational knowledge for effective implementation.
Automation is undoubtedly transforming the insurance landscape, but it’s imperative that insurers and MGAs proceed with a well-thought-out yet agile strategy.
Joe O’Connor, Deputy CEO of RDT
“The findings from our poll clearly show that while there are significant benefits to be gained from automation, a considered approach utilising flexible technology combined with appropriate oversight is essential to avoid the pitfalls of hasty implementation”, Joe O’Connor stated.
A human in the loop is not merely a safeguard; it is a vital component in many cases that ensures the integrity and accuracy of automated systems.
This integration is not just a theoretical ideal but a practical necessity that is achieved with the right technology.
“At RDT, we partner with insurers to develop tailored, efficient automation solutions that address their specific needs and challenges, harmoniously blending advanced technology with indispensable human oversight. By doing so, we help our clients achieve the optimal balance between automation and human input, ensuring both efficiency and reliability in their operations”, Joe O’Connor says.
