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Bermuda:Re+ILS Spring 2016

21 Spring 2016 Bermuda:Re/insurance+ILS “The use of robotics is a major opportunity for re/insurance companies to tackle operational issues and change the way they run transactional processes.” Craig Russell WHAT CAN ROBOTS DO? ‘Software robots’ are a software application that can be programmed to carry out a process in the same way that a human user interacts directly with systems, spreadsheets, email, websites and other tools. Robots can be set up to follow any structured process to emulate human interactions on systems, eg, the software is given its own user identity and login details. It can then be ‘trained’ to collect and enter data to/from various systems, run models and perform any routine administration processing tasks. There are three primary ways organisations are using software robots: • Data movement — Collecting data from systems, online forms or documents and then loading data in/out of systems and tools; and — Moving data as part of M&A activity from a legacy system into new target systems. • Digital enablement — Adding a web/digital front-end to application(s) with a robot providing the integration; — Effectively the robot manages the passing of data to and from the core system, as if an administration staff user was logging into systems; and — This is particularly beneficial with legacy systems that are challenging to create a technical interface with. • Data processing — Performing repetitive tasks otherwise done by staff to reduce cost, accelerate timing, improve reliability and reduce risk; and — Automating a series of routine administration activities across an end-to-end process by shifting data between documents, emails and internal systems and tools. operating model cost reduction is outsourcing, but the scale of some Bermuda operators has traditionally restricted the feasibility of shared services and offshoring. “Robotic tools offer a cost reduction technique that is suitable for any size of reinsurer, retains administration activity close to key underwriting and control functions, keeps overall control of processes in-house, reduces inefficiency, improves scalability and delivers results quickly.” How do robots impact people? There may be the fear of a threat to staff and jobs on the back of this new technology. A range of research studies has been conducted that aim to assess the impact of robotic automation on employment prospects and to identify the types of jobs that are most at risk from automation. “Automation tools are more likely to change jobs than replace entire jobs within companies. They will eliminate the routine and low-value tasks and allow human staff to focus on the higher value analysis and relationship management activities,” says Russell. “It is the blend of software robots and people working in tandem that offers the most powerful combination: robots to deliver the repetitive, deterministic, high-volume tasks quickly and cheaply, and people to focus on providing the subjective judgement-based and relationship management tasks that differentiate service to brokers and cedants. “The use of robotics is a major opportunity for re/insurance companies to tackle operational issues and change the way they run transactional processes. “EY has experience of working with a broad range of robotic process automation tools, helping clients to conduct proof-of-concept exercises, training client teams to set up robots and working to establish the infrastructure required to increase automation levels across key processes,” says Maiato. �� Chris Maiato is a principal and EY’s advisory leader for the Bahamas, Bermuda, British Virgin Islands and Cayman Islands. He can be contacted at: chris.maiato@bm.ey.com Craig Russell is a senior manager in EY’s advisory practice. He can be contacted at: craig.russell@bm.ey.com


Bermuda:Re+ILS Spring 2016
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