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Streamlining Claims Processing: The Role of Reporting Automation in the Insurance Industry
Automation Insurance InsurTech

Streamlining Claims Processing: The Role of Reporting Automation in the Insurance Industry

By Priyobroto July 05, 2024 - 107 views

Cutting-edge technology is steadily becoming a buzzword for the insurance industry. Artificial intelligence (AI) and automation are some of the most potent tools that are revolutionising insurance processes, while unlocking numerous benefits for not just insurers, but their customers too. Reporting automation is one of these new-age innovations that have a vital role to play in streamlining multiple tasks, right from claims processing to underwriting.

What is Reporting Automation?

The basic meaning of reporting automation is automatic generation and sharing of specific data to selected people as per a pre-fixed time interval. In this case, automated reports may take care of multiple aspects of operations, while also linking to diverse KPIs (key performance indicators) simultaneously, along with other time-dependent data.

How Reporting Automation Helps Streamline Claims Processing and Other Tasks

Reporting automation can play a major role in making claims processing simpler and less time-consuming for insurance companies, while also enhancing overall customer experiences greatly. It has steadily become a vital tool for enabling swift results, actionable insights, and reviews. Here are some key aspects worth noting in this regard.

  • RPA (Robotic Process Automation) enables automation of periodic reporting for the insurance industry.
  • Internal and external reporting mechanisms can be changed with automated report-writing software and tools with diverse applications.
  • Central result/actionable data reporting becomes an easier task with reporting automation, thereby reducing the time taken for the same. It also unlocks more time for reviews.
  • Manual jobs like scheduling reports and other aspects are also automated throughout the insurance process.
  • Central reviews and evaluations are also executed quicker, with highlighting of key sectors and assumptions simultaneously.
  • There is no dependence on multiple systems and frameworks that may also have erroneous quality check/control systems.

Here’s how reporting automation can greatly enhance the claims process:

  • It will make it simpler to automate reporting schedules and flows, thereby enabling higher efficiency and integration throughout systems.
  • It will unlock granular analysis while also making sure that frequent and timely data-based insights are acquired.
  • Automation helps in combating data quality issues, while enabling the consolidation of data throughout multiple sources and teams.
  • The central mechanism or reporting helps keep all stakeholders in the loop for faster decisions.
  • Data processing tasks can also be automated, thereby saving time of the insurer that would otherwise have been spent on manual tasks.

Claims Processing Simplified with Reporting Automation

With suitable reporting automation tools, insurance can handle and process claims better. The overall process usually involves multiple documents and details, while taking up sizable time in most scenarios. In this process, customers will be looking for reimbursements for damages and losses covered in their policies, while seeking settlements likewise. The conventional method involves accessing data from numerous sources, evaluating the same, and then working out the payouts for claims, and also weeding out data that is not just outdated, but also inaccurate.

Here are some aspects worth highlighting here.

  • With various reports claiming how just 5% of insurance companies are fully automated or digitised suitably for handling claims, automation is the way forward with regard to better handling of the same.
  • This will involve data extraction, initiation of claims or the FNOL (first notification of loss) intake, data gathering, updates, verification, tracking of all involved stakeholders, adjudication, and the final settlement.
  • Thereafter, the tool will create profitability reports while sharing the same centrally as well.
  • At the same time, automated software for processing claims will deploy AI for analytics-driven decisioning of claims, accurate estimation of damages, and detection of possible fraud.
  • This will help insurance companies considerably lower operational expenses, while also boosting customer experiences simultaneously. The latter will be possible with faster and more accurate processing of claims without delays or information lags.
  • Automated unstructured data extractions has enabled faster processing with quick information gathering of patients/customers from multiple sources. This does away with manual data entry needs, while lowering errors at the same time.
  • This will help expedite settlements with real-time tracking of claims for higher transparency.
  • Identification of anomalies and other patterns throughout unstructured data will also speed up the investigation of claims. This will help insurers lower their losses owing to fraud.
  • Customers will also benefit since their premiums will not be enhanced unfairly to cover fraud costs.
  • Automation will completely streamline the management of claims, through compiling relevant data from numerous sources. It will enhance decision-making and allocation of resources for insurers.
  • Policyholders will have vital information readily available on claim statuses, thereby enabling a more efficient management process for claims.

Signing Off

Hence, as can be seen, reporting automation has a crucial role to play in simplifying and streamlining claims procedures throughout the insurance sector. The usage of AI and automation also comes with several other benefits, ranging from fraud detection and better underwriting to lower costs and manual tasks for insurance companies. These tools even help in extracting vital data from unstructured sources like social media posts, emails, and more. This helps insurance companies swiftly respond to the queries of their customers, thereby enabling higher satisfaction levels and overall retention in the long run. Personalised claims processing, service, and offers are also facilitated through the usage of automation.

FAQs

1. How does reporting automation speed up claims processing?

Reporting automation helps speed up claims processing tasks considerably, through enabling quicker decision-making after gathering and analysing data. This helps customers obtain swifter settlements as a result.

2. With sensitive information involved, how does reporting automation ensure my data is protected?

There will be several measures like classification and discovery along with centralised repositories for enterprise/business-wide auditing trails. There are other measures like access control and encryption to safeguard sensitive data.

3. Does this technology work for different insurance categories (e.g., auto, health, property)?

Reporting automation works for various insurance categories, simplifying claims settlement and processing along with underwriting, and personalisation of offers and products for clients.

4. What role does data visualisation play in reporting automation for claims processing?

Data visualisation enables clear visibility into crucial metrics for performance, including average settlement amounts, claims processing timelines, customer response timelines, and so on. This naturally has a positive effect on expediting the resolution and settlement of claims.  

5. What are some examples of successful implementations of reporting automation in insurance claims processing?

Some of the examples of successful reporting automation for insurance claims processing include data extraction, digitisation of documents, submission of claims electronically, fraud detection, and more.

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