What is risk assessment automation?
Risk assessment automation refers to the incorporation of automated processes into the insurance underwriting workflow, replacing manual tasks with automated technology, thereby improving accuracy and efficiency. Instead of combing through the extensive (and often paper-based) background materials of applicants—a manual process that can take weeks—insurance companies can automate risk assessment by first digitizing information and then using robotic process automation (RPA) and even artificial intelligence to arrive at better, faster decisions.
What are the business benefits of risk assessment automation?
Risk assessment automation provides a number of benefits:
- Operating efficiency: Risk assessment automation enables insurers to work more efficiently by streamlining workflows and replacing error-prone manual processes with accurate automated ones. This reduces cycle times and lowers staffing costs.
- Optimal use of labor: With relief from the burden of mundane tasks, risk assessors can instead focus their time and energy on value-added, mission-critical priorities. Not only does this boost morale and aid employee retention, it can also positively impact the bottom line.
- Increased productivity: By combining RPA with machine learning and cognitive technologies to create intelligent operations, risk assessment automation accelerates productivity.
- Better customer experience: Because automation reduces cycle time when compared to paper-based manual processes, the entire risk assessment process can be completed more quickly and accurately. As a result, insurers deliver a better customer experience and reduce customer churn.