Balancing technology and talent the key to embedding claims automation

Some 70% of insurers view the automation of business processes as essential for staying competitive in the market, with 60% believing the technology can enhance customer satisfaction and claims accuracy.

That is according to research from insurance technology provider RDT, in which claims handlers identified manual data entry, delays in document retrieval, lack of accurate data and communication with policyholders as the four areas that currently pose the top challenges in claims handling.

However, disparate views on automation held by claims handlers and business leaders are commonly seen as a barrier to technology uptake, with 72% of surveyees identifying a lack of alignment between claims teams and decision makers.

RDT suggested a “strategic balance between people, skill sets and leadership vision” could be the key to minimising the impact of automation integration in these areas.

Views on automation

Leaders were more likely to view automation as an aid for “cost savings, regulatory compliance, digital transformation and maintaining competitive positioning”, while handlers were more likely to focus on “document retrieval, manual data entry and system inefficiencies”.

Indeed, some 62% of claims handlers reported believing that automation would diminish their role, with another 58% saying that existing automation had prioritised efficiency over employee experience.

However, 54% of handlers also felt that automating repetitive tasks would enable them to focus on more complex decision making and customer service, with a further 40% of handlers noting that they would like to be involved in the design and implementation of such systems.

RDT said the data suggests that by communicating only “efficiency and cost reduction” benefits, business leaders increased fear of job losses – and that by emphasising automation as an “enabler, not a threat”, human expertise and technology could work together.