Automation: An action point for the insurance industry

The core idea behind automation is an increase in customer satisfaction and efficiency.

Insurers expect automation to provide lasting customer satisfaction and a reduction in costs. This effects almost every corporate area, such as sales, customer service, risk management, actuarial activities, etc. 

What role do decisions play in automation?

There is a number of questions that arise in everyday operations. For insurers, the answers to these questions, i.e. the decisions, are partly automated but are sometimes also handled manually. Insurers are becoming increasingly aware of great opportunities afforded by the automation of operational decisions, enabling them to get closer to their goal of customer satisfaction and greater profitability.          

With insurers, operational decisions answer questions such as: 

- What steps must be taken when creating a contract?
- What is the basis for setting the prices for different distribution channels?
- What are the rules for the compliance testing of new and existing customers?
- How does the underwriting process work?
- How are claims systematically processed?

Decisions are made on the basis of certain rules defined by each insurance company. Rules are the basis upon which it is always possible to make decisions according to the same system. This is a great opportunity for success with automation.

How can an insurer automate decisions?
A specific solution for automating decisions is a core decision management technology. Ideally, rules and decisions are removed from the core IT applications and are managed centrally. Each department defines its specific rules, such as for compliance, product management, underwriting or onboarding, and it is always transparent how the system makes decisions. Another advantage is that each decision is completely documented and the system indicates who made what decision when, and on which database.