Robotics & AI can transform business
Robotics process automation (RPA) has
the potential to transform the insurance
industry by freeing up resources, reducing
turnaround time in operations and improving
overall accuracy across many manually-driven
functions of the insurance lifecycle, Justin
Davies, vice president and regional head of
EMEA at Xceedance, told Baden-Baden Today.
According to Davies, RPA can be
interpreted as an effective ‘virtual resource’ in
that it performs repetitive, rule-driven tasks,
directed by software and existing applications.
Xceedance recently carried out an in-house
RPA proof of concept for an insurance client.
The RPA was applied to policy processing
tasks, and the initiative significantly cut the
time to issue policies and increased accuracy
considerably, so that insureds now receive
correct and comprehensive policy forms quickly.
“There was a marked improvement in
productivity and reliability,” said Davies. “Among
the findings of the RPA
initiative, the time to issue a
policy was cut in half, there
was 100 percent accuracy
in formatting, and it took 90
percent less time to validate the
Furthermore, Davies said,
robots could have a significant
impact on the workforce of
both insurers and reinsurers.
“According to a recent
study, approximately 80
percent of insurers within the P&C domain are
considering RPA integration,” he continued.
“Because of this wide adoption, there is growing
fear that robotic technology could ultimately
In fact, the underwriting function was
recently ranked fourth on the US-based Center
for Business and Economic Research’s (CBER)
report of the top 10 list of
occupations that can be
“While RPA will probably
change the makeup of
tomorrow’s workforce, human
intelligence and intuition in risk
evaluation and management
will always remain a steadfast
and essential part of the
industry,” added Davies.
“Insurance is driven
by an understanding and
appreciation of risk in conjunction with special
conditions, contingences, and a viewpoint to
expect the unexpected. Only human experience,
logic and foresight can address these factors.
“Rather than working in competition with
robots, the workforce of tomorrow will likely
be one in which humans and robots work in
tandem,” he concluded. n