Robots And Automation Are Changing The World’s Insurance Industry

BY YENNIFER SOTERO, CARLOS MERA, STANLEY MORLIER, TIMOTHY PETERSON, MATTHEW RAMOS, IAN RECILE AND KORI REINE

LOW-COST ROBOTS INCREASE PRODUCTIVITY, AND BECAUSE OF THIS, THEY ARE DISPLACING MANY INSURANCE JOBS. ULTIMATELY, THOSE IN THE INDUSTRY MUST ADAPT TO THE CHANGING CONDITIONS.  HUMANS HAVE TO COMPETE WITH THE EFFICIENCY OF ROBOT LABOR AND FIND WAYS TO REMAIN RELEVANT.

 

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WHAT TYPES OF AUTOMATION ARE THEY USING?

FOR INSURANCE AGENTS SOLICITING INSURANCE THEMSELVES, AUTOMATION IS MAKING THEIR JOB EASIER. INSURANCE AGENTS USE SOCIAL MEDIA AUTOMATION, SUCH AS HEARSAY, IN ORDER TO BUILD THEIR ONLINE PRESENCE AND FOR EXPOSURE. ADDITIONALLY, THE INDUSTRY USES AUTOMATION SUCH AS SALESFORCE THAT ALLOWS THEM TO MAKE INITIAL CONTACT WITH POTENTIAL CLIENTS, RATHER THAN FOCUSING ON TIME-CONSUMING “COLD CALLING.”

ROBOTIC PROCESS AUTOMATION (RPA) HAS IMPACTED THE INDUSTRY IN WAYS OTHER THAN THE INITIAL SOLICITING.  IT REPLACES ROUTINE ADMINISTRATIVE TASKS PREVIOUSLY DONE BY PEOPLE. ADDITIONALLY, QUOTES AND CLAIM ADJUSTMENTS HAVE BETTER RESULTS AND ARE MORE EFFICIENT.

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HOW ARE THE ROBOTS AFFECTING INSURANCE JOBS?

ROBOT LABOR IS MORE EFFICIENT THAN HUMAN LABOR IN MANY WAYS. FIRST, THEIR COST IS LOW AND THERE IS A HIGH RETURN ON INVESTMENT. THIS AUTOMATION CAN BE MUCH CHEAPER THAN PROVIDING AN EMPLOYEE WITH A SALARY AND BENEFITS. THE ROBOTS DO NOT NEED SICK DAYS, VACATIONS, HOLIDAYS, OR BREAKS, AND IN MANY CASES, THEY CAN DO TRIPLE THE AMOUNT OF WORK AS A PERSON.

SO IT’S NO WONDER THAT THEY ARE REPLACING HUMAN JOBS. RPA IS EASILY TAKING THE JOBS OF INSURANCE CLAIMS ADJUSTERS AND EVEN HAVE MORE EFFICIENT AND ACCURATE RESULTS. THEY ALSO CAN GENERATE QUOTES WITHOUT ANY HUMAN LABOR. IT’S EXPECTED THAT IN THE NEXT FIVE YEARS, 20% OF INSURANCE JOBS WILL BE REPLACED BY THESE ROBOTS.

 

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HOWEVER, SOME JOBS ARE RATHER SAFE FROM REPLACEMENT! WHEN SELLING INSURANCE POLICIES, IT MUST BE DONE BY A PERSON WITH AN INSURANCE LICENSE. ROBOTS ARE NOT YET ALLOWED TO BE LICENSED, AND PEOPLE GENERALLY PREFER TO SIT DOWN WITH AN AGENT IN PERSON TO DISCUSS WHICH POLICY WOULD WORK BEST FOR THEM IN MANY CASES. THESE JOBS ARE SECURE UNTIL ROBOTS MAY BE LICENSED, BUT EVEN THEN, WHEN PURCHASING EXPENSIVE WHOLE LIFE INSURANCE POLICIES, PEOPLE FEEL MORE COMFORTABLE WITH AN IN-PERSON MEETING.

WHILE THESE INSURANCE JOBS MAY BE SAFE FOR NOW, THE EMPLOYEES MUST STILL LEARN HOW TO USE THE TECHNOLOGY, AS THEY WOULD BE REPLACED BY SOMEONE WITH BETTER KNOWLEDGE OF IT.

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HOW SHOULD THE INDUSTRY RESPOND?

EDUCATIONAL INSTITUTIONS SHOULD TEACH YOUNG BUSINESSMEN AND WOMEN TO ADJUST TO NEW TECHNOLOGY AND ROBOTICS SO THEY ARE MORE QUALIFIED AND ARE LESS LIKELY TO LOSE THEIR JOBS TO ROBOTS. IT IS KEY TO TEACH THOSE IN THE INDUSTRY HOW TO ADAPT AND USE THE TECHNOLOGY TO THEIR ADVANTAGE. THE END-GAME IS FOR HUMANS AND ROBOTS TO WORK HAND IN HAND WITHIN THE BUSINESS WORLD, KEEPING THE BALANCE BETWEEN ROBOTICS AND HUMAN OCCUPATION. IF THIS HAPPENS, THE BUSINESS WORLD WOULD BE EVEN MORE SUCCESSFUL THAN IN THE PAST.

 

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