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Automation Redefining the Role of Employees in the Insurance Industry

By CIOReview | Monday, June 24, 2019

The role of employees will change as insurance companies evolve and incorporate automation. Are the firms ready for the reshuffle?

FREMONT, CA: By 2025, up to 25% of the task force in the insurance industry may be consolidated or replaced by automated processes according to a 2017 report by McKinsey Global Institute. Digitalization is peaking, and the technological developments are making it essential for insurance firms to look for new skill sets among employees. Automation, aided by artificial intelligence, machine learning, and big data analytics, is disrupting the traditional business model. Consumer expectations for better services have ensured that companies revamp their services at the earliest.  

The insurance industry has been facing some challenges that it can now look to overcome with new tools at hand. Evolving markets have brought about new and powerful competitors who can do severe damage to established insurance companies. Old and legacy systems are hampering data related processes. Due to consumer demands, companies are also struggling to make claims management faster and more efficient. Thankfully, for the insurance industry, the right technologies can take charge and deliver transformative goals.

Automation can impact the insurance industry at many points. Menial, repetitive tasks which form a significant chunk of the duties in the insurance industry will soon be handed over entirely to machines. This will make the tasks less error-prone, faster, and help companies reduce their dependence on human beings. The company can define better roles for the workers who were previously employed in those tasks.

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Claims management will also see a lot of automation. The process of registering for services or applying for claims is going to become convenient with automated interfaces through which consumers can file papers. Artificial intelligence driven tools that have the capabilities of evaluating damage are going to reduce the time it takes for damage assessment. The role of people who are employed for these duties will change subsequently.

Customer assistance is being automated through chatbots, which can address customer queries and give insurance advice no matter the time of the day. This mandates that companies change the role of customer care executives and make them extremely specialized so that they can take up the issues that chatbots cannot solve.

Technological changes in the insurance sector are going to result in a workforce reshuffle so that automation and manual activities complement each other. To transform successfully, companies will have to be dynamic and continuously upgrade all aspects in tandem with technology.