Insurance Industry: Behavioral Process Design for Automation

Angélica Speich
21 de July de 2022 · 6 min de lectura

On its way to transformation, the insurance industry faces a number of challenges. However, new behavioral-based methodologies can assist businesses in becoming more competitive. How can Behavioral Process Design help businesses innovate?

For large insurers seeking to move forward in their digitization process, the current scenario of changes in technology and consumption it’s a significant challenge.

In this regard, process automation is one of the critical pillars for carrying out this digital transformation. To be successful, we must consider two fundamental factors: 

  • Involvement of the organization’s internal teams: they are the ones who are most familiar with the internal processes and, at the same time, will benefit from their automation, as it will allow them to leave behind repetitive tasks and devote their time to tasks that add value to the organization. 
  • Use of new technologies and methodologies: the “Concorde Fallacy,” which occurs when someone invests in something that does not produce the expected results, must be overcome. Fear of losing what has been accomplished makes it difficult for many businesses to accept that some implementations must be abandoned in order to pursue more effective solutions.


Automation as an ally for innovation

According to a Statista study, insurance companies will invest the most in customer digital experiences, followed by internal process automation.

What are the benefits of automation?

Broadly speaking, and thanks to new methodologies and technologies, companies, regardless of their geography or size, can benefit from the following aspects:

  • Freeing up employees’ time, allowing them to focus on more creative processes that add value.
  • Improved interactions among employees, businesses, customers, and technology.
  • Reduction of errors, since human errors are eliminated in the process.

“True innovation rests not just in the deployment of technology, but in creating new methods of doing things, even with the resources currently available,” says Miguel Verduzco, Head of Automation at Multiplica.

“When looking to carry out effective changes, the capacity of consultants to understand the demands of firms, their culture, and their business objectives is far more significant than the technology itself,” Verduzco explains.

For this reason, “it is recommended to begin by analyzing and understanding the maturity of the processes before beginning to automate.”. While CEOs are pressured to accelerate process optimization and see results as soon as possible, it is better to start small.


What is Behavioral Process Design?

The BPD is a technique used by Multiplica to comprehend, map and analyze the company’s processes in order to optimize them. It is built on agile approaches and behavioral design strategies to benefit from people’s cognitive biases.

This methodology is based on three pillars, or three “R”:

Reliable operations 

Ensure that the process to be automated solves problems and achieves goals. The Toyota method, which revolutionized the way processes are organized, serves as the foundation for this pillar. Its fundamental premise is to seek out and eliminate waste. Prior to automation, this is where the initial diagnosis begins.

Rewarding behaviors 

It considers the human element and how it interacts with the process. The human aspect is translated into behaviors in order for them to be accepted and the laborious, repetitive work that machines do for humans to be eliminated. In a nutshell, it is about liberating individuals from duties that do not foster or allow for the application of creativity.

At the same time, some human engagement is required during the automation process because the solution is produced in collaboration with people and is not imposed top-down, unidirectionally, and arbitrarily.

Relevant technology 

Today, with the Internet’s exponential growth, a wide range of technological solutions have been developed, making it difficult to determine which is the best option. As a result, the objective is to provide a unique toolkit to solve specific problems.

It should be highlighted that the transformation process is not a stand-alone procedure, but must work in tandem with other decisions and actions. It is not just about automating, but also about establishing new trust relationships among insurers, brokers, clients, and technology.


The contribution of automation to the insurance industry

Now, how can automation favor the different processes of the industry?

  • Generating, sending and monitoring of invoices

Automation streamlines data extraction from invoices and allows each step of validation and reconciliation process to be completed automatically, without friction and in less time.

  • Fraud prevention

The use of robots to process sensitive information reduces the likelihood of fraud, forgery, and deception. Insurers can also monitor and eradicate threats before they become unmanageable.

  • Processing of Claims

Each claim is automatically assigned to a specified process path depending on its complexity after it is generated. This allows the organization and its customers to monitor, handle, and analyze each claim, as well as coordinate actions more efficiently and safely.

If you want to learn more about how Multiplica can assist you on your automation journey, please contact me, Customer Chief Officer at Multiplica.


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