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The Future of Insurance Automation

By Tara Seboldt


Technology is here to make our lives easier. With the help of automation, we can streamline processes at our home and work. 

For example, you can automate your monthly electric bill by setting up automatic online payments. That way, you won’t have to sit down each month, write out a physical check, and mail it.

For agencies, insurance automation makes the entire process of serving your clients and managing business tasks more efficient. In this post, you’ll learn how automation works in the insurance sector and how it can help your agency.

What is Insurance Automation?

Insurance automation is the process of using technology to automatically complete tasks related to insurance services. Automation removes steps or processes an agent would normally complete manually.

Think of all the daily tasks at your agency. A customer service representative files a change of address for a client. Your accounting team processes checks for premium payments. You contact various carriers for quotes for a potential client. Insurance automation is meant to reduce the time it takes to complete these strategic tasks.

When you have automation in place, many of your tasks are completed by computer software. For instance, customers can change their address through an online portal. That new address will automatically be populated in your system, which eliminates the need for a customer service representative to physically file an address change form.

How Automation Will Transform the Insurance Industry

The insurance space is continuing to embrace technology. New insurance software companies crop up every year to help you efficiently run your agency.

Intelligent process automation is necessary for the insurance industry to keep up with customer and market demands. All of the little processes that make your agency run—from claim processing to making payments—can be streamlined through automation.

Automated processes help insurance agents solve problems, such as:

  • Delayed Quotes: Manually requesting a quote from a carrier could take days. You have to wait for someone from the carrier to get back to you after running your client’s details through their system. An automated quote system processes and calculates potential risks using computer software. Quotes are delivered faster—often within a few minutes.
  • Human Errors: A typo in the wrong spot can lead to a lot of headaches. It could even mean serious miscalculations if the problem isn’t caught. Automated systems reduce the chance of typos or other human errors.
  • Inefficient Manual Processes: Manual tasks take a lot of time to complete, making your team less efficient. For example, you have to fill out individual applications to get quotes from multiple carriers. That means you also have to re-enter your client’s information onto each separate form. Insurance automation software can take your client’s information and automatically populate it into all the applications, saving you actual time.

Key Benefits of Insurance Automation

Insurance automation helps agents run more efficient businesses and deliver a better customer experience.

Lowering operational costs is one of the major benefits of adopting automation at your insurance agency. You may be worried about the cost of automation. While you’ll likely face initial costs, automation can pay off big in the long run. Automating recurring processes can reduce the need for additional office staff.

With automation, your team no longer needs to waste time on repetitive tasks. Tasks that may have taken hours before might now only take a few seconds. Your team can instead focus on projects that will have a bigger impact on the bottom line.

In an article for Insurance Journal, CEO of AgentSync Niji Sabharwal predicts 2022 to see a rise in back-end insurance automation to improve efficiency. 

“From the automation of claims processing to technology that simplifies the producer licensing and compliance process, insurance carriers and agencies should find ways to reduce costs and improve customer service through innovative tech solutions this year,” explains Sabharwal.

Everyone makes mistakes. However, in the insurance industry, the wrong mistake can be costly. Reducing or eliminating human errors is an important benefit of insurance automation.

In today’s technology-driven world, most insurance customers want quick, easy access to their insurance accounts. Insurance automation can help your agency win clients and create the best customer experience. Automation like self-service online portals puts your clients in control. It gives them immediate access to the information they need and boosts customer satisfaction.

Automating your regular tasks and processes will help your business operations run more efficiently. Improving efficiency lowers costs, encourages a more productive team, and reduces the chance of human errors like typos. Automation can also help improve the customer experience by giving clients the tools they need to manage policies on their own.‍

Best Use Cases for Insurance Automation

Where can you add automation to improve your insurance agency? Almost anywhere. Automation creates a streamlined insurance process. Here are a few examples:

  • Generating Quotes: Automated quote generation makes it easier to find the right products for your clients. Instead of waiting several days for a quote, platforms like Pathpoint let you get quotes from multiple carriers in minutes. You’ll spend less time waiting for quotes and more time helping your client.
  • Underwriting: Insurance automation streamlines the underwriting process. For example, a client wants to apply for a new line of insurance. With automation, the application can automatically be pre-filled using existing customer data. You can also use automation to quickly process an application based on various risk factors of the applicant.
  • Payment Processing: Allowing clients to pay their premiums using an automated system saves you both time. You’ll automatically receive premium payments, and your clients won’t have to worry about mailing a check each month.  Automated payments use cybersecurity measures like data encryption to help keep client information protected.

Insurance automation can be integrated into your business growth for multiple purposes. Many agencies choose to implement automation in stages so their teams aren’t overwhelmed with new technology. Automating your quoting system, underwriting process, and payment systems are easy ways to start streamlining your business processes.

Insurance Automation Helps Your Agency

Insurance automation offers tangible business benefits. Your agency can improve efficiency by automating processes like quote generation or payment processing. Try Pathpoint for instant, bindable E&S quotes from multiple carriers today.