With driverless cars, drones and mobile response RVs during natural disasters, insurance is at the center of a technology renaissance that will fundamentally change how we do business, and what our workforce looks like.
Maybe no other development signifies the insurance industry's commitment to modernize than its adoption of automation, where insurance actually leads over other global industries. But with this will come significant changes to carriers (and their partners), from the tasks they assign to employee skill sets that recruiters search for.
Three common questions arise when companies consider automating:
1. What Does automation look like?
Automation is a subtle, behind-the-scenes process. It involves wiring repeatable, time-consuming tasks (such as those handled by claims adjusters) through robotic software (a concept called "robotic process automation" or RPA), which can handle a massive amount of transactions in less time.
The benefits of process automation are tangible. Early adopters can lower operating costs (between 20% and 40% in some cases), improve service quality, increase compliance (automation provides a traceable history of activity), and decrease delivery time.
2. How do we get started?
You can't just plug-and-play process automation. In order to truly maximize effectiveness, companies need to identify and reorganize processes with automation in mind, and encourage employee buy-in and enthusiasm.
The first step is identifying possible high-volume processes. These processes need to be reengineered to fit automation into the organizational chart, which can be time- and labor-intensive. Companies often turn to experienced service providers to create a roadmap for automation.
Involve operational teams. For example, if a company is automating the closing of outdated claims, the adjusters who typically handle the transaction should help design the automated process with the IT team. This brings adjusters up the value chain—they're now involved in strategy—and encourages ownership in the project.
Successfully launching automation also means cultivating a company culture accepting of "robot colleagues." One company's experience in the London market was successful thanks to organized "robot councils" introduced before launching. These councils toured offices and clearly communicated the project's goals and how employees would move into expanded roles.
3. how are employees affected?
The insurance industry is facing a looming talent gap (with as much as 25% of the workforce retiring by 2018).
But, make no mistake, the type of automation discussed here isn't a cure-all. After all, the software taking over much of the behind-the-scenes data processing and transacting must still be orchestrated by humans—it's only as intelligent as we teach it to be.
It does, however, illustrate companies' commitment to giving human employees a more involved, strategic role—an attractive characteristic for prospective employees and recent graduates. Process automation isn't designed to eliminate jobs, but rather to allow existing employees to move into more fulfilling roles. For example, when Xchanging automated its claims processes for the London market, adjusters moved from data processing to client strategy.
Automation will also affect how and where recruiters look for talent, and even coursework at the college level. The shift in entry-level insurance jobs to more strategic roles will require more industry-specific training, making students who graduate with a concentration in insurance or risk management an attractive commodity. Analytical skills and a background in statistics also will be at the top of recruiters' wish lists.
In short, implementing automation isn't as simple as flipping a switch. Ensuring a successful integration requires multiple stages of planning and, most importantly, engaging in a meaningful dialogue with employees.
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