BPM in Insurance

1
BPM In Insurance creating increased performance
and service delivery quality
2
The insurance industry is facing more new
regulatory and compliance regulations than ever
before.

• This means that insurance companies have an
  increased need for organized, secure, and
  efficient systems. Gone are the days of paper
  filing systems or even of simplistic databases.
  Insurance companies are now beginning to utilize
  Business Process Management (BPM) systems with
  great success.

3

• Business Process Management is an approach
  designed to increase the efficiency and
  flexibility of an organizations workflow through
  the optimization of the business processes.
• Insurance companies, in particular, are
  constantly working through many concurrent
  processes whether related to claims, compliance
  regulations, underwriting, backend administrative
  tasks, or a number of other necessary operations.
  
• All of these processes can be optimized and
  workflow improved through adoption of BPM.

4

• The current legacy systems typically used by
  insurance companies for tasks such as
  underwriting and managing claims are often
  inefficient, inflexible, and can end up causing
  more problems than they help solve. Companies
  might be using multiple different legacy systems
  to track and manage various processes. The legacy
  systems often dont communicate or cooperate with
  each other and cant be adapted to do so.
• This is where the benefit of flexibility in a BPM
  system is so apparent. With regulations
  constantly changing, insurance companies using a
  system like BPM have an advantage in that they
  can quickly adapt their processes and workflows
  to comply. With legacy systems, compliance to new
  regulations might be costly, time-consuming,
  frustrating, or even simply impossible. BPM
  allows insurance companies to adjust their
  workflow of processes easily.

5

• Insurance companies also see benefits from
  optimizing their business processes through BPM
  systems in the areas of customer satisfaction,
  decreased costs, and overall productivity. Many
  of the processes that insurance workers go
  through on a daily basis can be automated, or at
  least streamlined to some degree. Often insurance
  companies arent even aware of which processes
  are being done, much less how to improve those
  processes. By setting up efficient workflow
  models utilizing a BPM solution, leaders and
  partners can more easily see areas of improvement
  for process efficiency. They are able to target
  bottlenecks, where work might be getting backed
  up, more easily. They can also easily rework
  processes to avoid situations like that in the
  future, which can be detected through modeling of
  the workflows. This is necessary since it is
  impossible to fix a problem if you are not aware
  that it exists. Even if there is not a problem
  per se, there is always room for improvement,
  which BPM can help discover.

6

• By improving process efficiency through BPM,
  insurance company employees have more time to
  focus on each task and spend time on other tasks
  that might be otherwise overlooked. This can lead
  to a decrease in mistakes which could have been
  costly. The additional time that they are saving
  can also be used toward generating new business
  or improving relationships with current
  customers. All of these improvements in
  efficiency and increased automation through BPM
  can ultimately affect the bottom line for an
  insurance company.