Kryon Systems CEO Harel Tayeb operates in a technology space that he asserts is increasingly important to insurers.
His Israel-and New Jersey-based company develops and sells robotic process automation technology (RPA) that helps companies pursue the digital transformations many say they’re seeking. Kryon’s flagship platform Leo helps companies automate their business processes in what the company bills as a quick and easy process. The goal: better productivity, fewer errors, reduced costs and big returns on investment.
Why should RPA matter to insurers?
Tayeb said that increased insurance industry automation—particularly robotic process automation—will be highly beneficial to both insurers and consumers.
Carrier Management Editor Mark Hollmer asked Tayeb via email to explain why, and elaborate further about the technology and why it matters. His responses are below.
Q. In what ways will robotic process automation help the property/casualty insurance industry. Give three specific examples.
Tayeb: RPA provides a quick, non-disruptive method of process execution that’s ideal for the data-entry-heavy workload of the property/casualty insurance industry. It smoothly optimizes large parts of operations, such as information retrieval for the underwriting process, as well as the document and data entry heavy parts of claims processing, reducing turnaround time greatly. Additionally, RPA leads to improved regulatory compliance and accuracy, as human error is eliminated, and these are just a few ways that insurers can benefit.
Q. How can insurers handle the cost concerning RPA investment?
Tayeb: When considering the investment in RPA, companies should consider the total cost of ownership, which goes beyond the price tag on the software.
Different RPA platforms require different levels of investment regarding the deployment, development, and adapting the processes to changes. An RPA system that does not require full-scale integration will require less internal IT resources, and a platform with a relatively straightforward automation design studio means a company will be able to take care of most of the implementation, as well as the adaption to process changes, in-house and avoid expensive third-party consultants and automation experts. For companies with limited budgets, finding a platform which is designed for independent deployment and maintenance is key.
Q. What would RPA equipment look like—actual robotics?
Tayeb: The “robot” in Robotic Process Automation is software-based. It helps to think of it as a virtual employee running on a desktop or behind the scenes in a completely virtual environment. The digital workforce generated by RPA can execute the actions of a human employee but doesn’t need a comfortable chair and never calls in sick.
Q. What are the risks of RPA reliance? Can these machines be hacked, for example?
Q. Will RPA investment lead to net insurance industry job losses? If so, what areas? If not, why not?
Tayeb: New technologies create more jobs than they eliminate, and a quick search for jobs in new technology fields will turn up tens of thousands of job postings. Even with the implementation of RPA, human employees will continue to be a necessary part of the workplace.
The goal of RPA is not to replace employees, but instead to allow them to focus on tasks that require their unique skills and capabilities by removing time-consuming, mundane tasks. While certain elements of jobs, such as rote data entry, may become automated, many more jobs will be created as companies expand their offerings to include new ventures they formerly were unable to operate in, but find themselves able to with their new bolstered workforce.