Quadrant Knowledge Solutions Market Insights research provides detailed insights on the impact of emerging technologies on the automation of insurance underwriting and claims processing in policy administration system (PAS) solutions.
Traditional methods of manually executing insurance underwriting and claims handling have suffered significant setbacks. In today’s competitive business environment, the adoption of automation tools and technologies is being prioritized by insurers to achieve operational excellence. Achieving end-to-end automation of insurance underwriting and claims processing tasks can be challenging, but it is essential to improve risk evaluation and decision-making capabilities.
Automating the insurance underwriting value chain helps collect data, facilitate communication among stakeholders, and formulate an appropriate course of action while simultaneously performing accurate underwriting by detecting and preventing fraud. Meanwhile, automation of claims processing assists insurers with handling paperwork, extraction, and analysis of key data points required for claims adjudication. Insurers will gain operational efficiency by cost-effectively streamlining their core operations, eliminating redundant tasks, minimizing errors, and avoiding disruptions. To attain automation throughout the insurance underwriting and claims processing value chains, insurers should establish robust strategies while frequently modifying AI/ML training datasets for accurate risk assessment and improved decision-making.
According to Nehan Jain, Analyst at Quadrant Knowledge Solutions, “Insurers are keen on improving their underwriting and claims processing tasks throughout the policy management lifecycle. Automating insurance underwriting and claims processing will help insurers achieve some prominent goals, including improved accuracy, enhanced customer experience, cost reduction, quick processing, and improved fraud detection. Adoption of emerging technologies like Artificial Intelligence (AI), Machine learning (ML), IoT devices, RPA, and Blockchain will assist insurers in improving decision-making capability, enhancing resource utilization, and performing an accurate risk assessment.”
Table of Contents
- Importance of insurance underwriting and claims processing and need for automation.
- How emerging technologies help automate insurance underwriting and claims processing.
- Automating insurance underwriting value chain
- Automating claims processing value chain
- How automation offers competitive advantage
- Final Verdict
Key Takeaways
- Insurance underwriting and claims processing are the key pillars of the insurance industry.
- Implementing emerging technologies for automating insurance underwriting and claims processing should be a strategic priority for insurers.
- Insurers rely on AI-powered automation technologies to assess risk quickly and empower decision-making capabilities.
- Incorporating automated underwriting and claims processing can be challenging, but it is essential for driving operational efficiency and deriving value.
- Adoption of various strategies to tackle challenges while automating insurance underwriting and claims processing.
This Market Insights is a part of Quadrant’s BFSI practice.
Author: Nehan Jain, Analyst, Quadrant Knowledge Solutions.
