Cognitive systems and cognitive robotic process automation (RPA) solutions can help insurance organisations to improve customer experience, decision making, and operational efficiencies, according to a new IDC report.
IDC’s new Implementing Cognitive Systems in Insurance Organizations study aims to highlight how cognitive systems and cognitive RPA can be used as accelerators for insurance organisations’ digital transformation journey. According to the research, as cognitive and cognitive RPA systems – which includes robo advisors, chat bots and virtual agents – continue to mature at a faster pace, they have the potential to transform multiple different insurance business functions.
Possible applications include using cognitive RPA to leverage structured and unstructured customer data to better calculate risk and enhance the onboarding experience across mobile and online channels. Using cognitive systems to analyse vast amounts of data will also help insurers to identify patterns based on customer interactions and increase sales.
“Cognitive RPA is one of the most prominent applications of cognitive technology emerging in insurance,” said Arun Dani, senior research analyst at IDC European Services. “With the integration of cognitive technologies, RPA is making its way to the front-office operations of insurance organisations. Cognitive RPA, also known as intelligent RPA or simply intelligent automation in the form of robo advisors, chat bots, and virtual insurance agents, is expected to have a significant impact on customer engagement roles in the industry in the coming years.”
Cognitive technology can also help accelerate underwriting and risk management, and can be used to develop predictive models for insurance claims, expense management, and loss analysis. Plus, cognitive systems can analyse accident images, phone conversations, or connected devices and sensors in cars and homes to check fraudulent patterns or detect suspicious activities.
“The insurance industry is currently on a digital mission to offer contextual and value-centric products and offerings to its customers driven by the change in customer and market expectations, technological disruptions, and the emergence of new kinds of competition,” said Sabitha Majukumar, senior research analyst at IDC Financial Insights. “Cognitive systems can present effective options to help accelerate the transformation journey to achieve this digital mission and stay competitive. Insurance organisations need to have a clear strategy as well as the right skills and partnerships in place to implement the technology and reap the benefits.”