Insurance Companies Using BPM to Increase Flexibility

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Insurance companies using bpm to increase
flexibility
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• Insurance is one of the most highly regulated
  industries, with new requirements and rules being
  added and changed frequently. Because of this, it
  is highly important that insurance companies
  practice organizational efficiency and
  flexibility to be able to stay up to date.
• One approach that insurance companies use is
  called Business Process Management, or BPM.

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• BPM is an approach or philosophy with the purpose
  of decreasing organizational inefficiencies and
  waste through business process improvements and
  optimization.
• When applied to companies working in the
  insurance industry, BPM shows significant
  benefits both for the insurance company as well
  as their customers.

Using BPM solutions, insurance companies are
able to document, analyze, streamline, and
improve their workflow and the processes within
it.
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• One reason that BPM solutions are particularly
  effective within the insurance industry is that
  BPM is extremely flexible, which makes it easier
  for companies using it to adapt to industry
  regulatory changes quickly and with minimal
  disruption to the processes involved.

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• Once deployed, a BPM system can be updated as
  workflows change or new processes are added,
  without needing to replace the entire system
  every time a law changes. While some legacy
  systems used by insurance companies might be able
  to handle modifications to processes, most of
  them lack the flexibility to do this easily and
  efficiently.

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• Insurance companies also benefit from the
  inherent transparency of BPM.
• Stakeholders are able to view entire streamlined
  workflows and see the interactions between
  people, information, and processes. This allows
  them to quickly notice problems as they are
  occurring and be able to predict and avoid future
  issues. This transparency and inclusion of all
  information in a centralized location also helps
  improve communication, both internally and with
  customers and regulators.
• Communication with customers and the demystifying
  of the insurance claims process, in particular,
  has been shown to have a significant impact on
  customer satisfaction and retention.

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• Another benefit seen by insurance companies using
  BPM solutions is decreased errors due to all
  processes being tied to workflows so that nothing
  is able to fall through the cracks and be
  overlooked.
• This makes it easier for employees to complete
  tasks correctly and efficiently. Following the
  workflow processes also increases accountability
  for employees. If a problem does arise, the BPM
  solution makes it easier to detect exactly what
  went wrong and how, which allows any problems to
  be dealt with quickly.

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• BPM systems also help insurance companies to
  improve their bottom line by automating processes
  and identifying costly inefficiencies.
• Once these inefficiencies are recognized, the
  company can take steps to improve the processes,
  then continue monitoring the workflow for
  additional areas of improvement. Rather than
  spending time with tedious paperwork, employees
  can automate processes like that. Then they can
  use the extra time they saved to work on new
  business opportunities, for example. The BPM
  system will then assist with knowledge-sharing so
  that the process can be automated across other
  functional areas of the company. Even small
  process efficiency improvements can have
  significant impacts as they free up resources to
  be used for more important tasks that can add
  value to the organization.