Backend Automation Equals Better Frontend Presence in Insurance Industry
Insurance companies are considered financial intermediaries who have embraced streamlining through insurance technology and backend automation. Although the insurance industry activities provide significant benefits to the economy, failures of insurance companies to meet their contractual responsibilities could pose severe problems to the entire industry. Such necessitates the intervention of regulatory bodies. Moreover, regulatory bodies aim to improve competition within the insurance industry by automating their backend processes.
Table of Contents:
1. Streamlining Internal Process through Backend Automation
2. World Bank and the Insurance industry
World Bank and the Insurance industry
In the financial services industry, the World Bank perceives an issue as ‘risky’ when it can impose potential damage or harm on its objectives. Based on World Banks’ Developing Insurance Markets Report the financial services industry should:
(a) Have market confidence. Reputation is necessary for the industry as a “bad” reputation could damage the trust placed by the public on financial service providers.
(b) Create public awareness. The World Bank aims to improve the growth of the financial services industry by increasing public awareness of what the industry does and how it could help consumers in their finances.
(c) Maintain financial stability. The World Bank operates to drive factors that could result in market volatility to assure investors of industry stability, which maintains their confidence in the financial market.
(d) Preserve consumer protection. Transparency is necessary for the financial services industry to protect the welfare of investors and savers.
(e) Reduce financial crime. The World Bank aims to reduce activities that could potentially impose damage or losses to the funds placed by consumers on financial products offered by the industry.
Streamlining Internal Process through Backend Automation
The increasing prominence of insurance technology and backend automation leads to more collaboration with traditional, larger insurance firms. Recently, automation experts such as Techflow.ai help transform the insurance industry by training and educating their employees, so they were able to package the essential complexities around developing and launching compliant insurance products behind an easy-to-use API.
Here are several forms of documents that are essential in the insurance business that have been automated.
- Proposal form. This is an insurance application form to be filled up by the applicant or the individual or corporate entity seeking insurance. General questions included in the proposal form have the person, property, or risk to be covered and the insurance history of the person or subject to be insured, for example, past losses, claims. The purpose of the proposal form is to provide information to the insurer to help him in the risk assessment. The insurer has the right to refuse the proposal or application, but he must state the reason for rejecting such a proposal.
- Policy form. Otherwise known as an insurance policy, the policy form indicates the coverage, term, premium, deductibles, and other important information regarding the insurance products, such as exclusions and others.
- Certificates of insurance. An insurance certificate or certificate of insurance is a document that is issued by an insurance agent, broker, or insurance company to serve as proof that the insurance coverage under specific conditional clauses exists. This particular insurance document provides pertinent details related to the insurance policy, such as the effective date of the insurance, type of insurance coverage, and the amount of coverage. The insurance certificate is usually requested in cases of possible large or significant losses.
- Cover notes. The cover note of insurance serves as evidence that an insurance policy has been issued. It likewise provides a summary of the detailed information contained in the certificate of insurance.
- Claims forms. This form is used by an individual or entity when making claims against an insurance company. The insurance company need not be your insurer. Suppose that a person encountered an accident in an establishment such as a mall (slippery floor), he should send an insurance claims notice to the mall’s insurer.
The insurance industry is constantly changing, which means a lot of paperwork, policy, and claims. Hence, it’s essential to streamline backend automation. It is crucial to make sure all the paperwork is filed on time and make sure that all the employees are given the correct information. Also, streamlining your insurance business processes is a great way to increase productivity and improve the quality of your services. To do this, you have to have a system in place. The best way to streamline backend automation is through a well-designed API that allows you to integrate all of your business software at a low cost.
Integromat can help you reach your digital transformation goals. Discover the platform’s modeling, automation, and integration capabilities. Learn more about how to use process automation software. Sign up for our free workshop and streamline your current business processes to save time with automated solutions.