Insurance investment teams today face mounting challenges: talent shortages, tight timelines, increasingly complex portfolios and regulatory requirements to name a few. Behind the scenes, artificial intelligence (AI) technologies are helping to address these challenges, dramatically improving operational processes and delivering significant ROI.
There are four variants of AI—machine learning, intelligent process automation (IPA), predictive analytics and natural language processing—that are already alleviating operational bottlenecks and outdated processes within insurance firms across the country. As repetitive tasks and manual processes are being modernized, employees are redirected to more impact-driving work.
In an effort to outsource and streamline processes, different variants of AI, such as IPA, are being implemented to automate typical investment processes, many of which are still highly manual.
What is Intelligent Process Automation?
Intelligent process automation is a combination of advanced technologies used to automate manual, repetitive, digital processes. Repetitive and routine tasks that were previously performed by middle-office operational, accounting and reporting professionals become routine with the combination of robotic process automation (RPA), artificial intelligence (AI), machine learning (ML) and digital process automation (DPA)—which together make up IPA.
The Benefits of an IPA Solution
A solution with embedded IPA technologies can learn how to modify the flow of processes to create an intelligent process. Similar to machine learning, over time, it will learn and improve such processes. IPA is important in automating day-to-day processes in insurance operations. Firms can automate previously manual and repetitive tasks, reduce processing errors, decrease transaction time and coordinate work between solutions and the people who use them.
Real-World Applications for IPA
Specifically for insurance investment teams, IPA can improve reconciliation and break remediation activities, collateral optimization and monthly checklists.
- Break remediation with IPA can identify and research position or cash breaks by automatically refreshing stale security attributes, prices or other market data elements, re-computing expected values, and then verifying these against counterparty-provided information.
- IPA enhances collateral optimization by identifying and optimizing holdings inventory available for use as collateral and help firms engage in funding activities such as repurchase agreements.
- IPA streamlines monthly checklists, automating processes related to audits and sign-offs, key review actions, retrieval and assessment of expected versus actual data, reminders to users of due or past-due dates, and activity reporting with appropriate audit trails.
In our "4 AI Technologies, 10 Benefits for Insurance Investment Operations" guide we explore the ways investment managers can apply existing, real-world AI solutions such as IPA to critical functions. Insurers are under constant pressure to improve yields and diversify investment portfolios. This creates unique operational, reporting, risk and regulatory challenges. AI models get better and smarter as they continue to process larger data sets with feedback and adjustments provided by relevant human experts, so the sooner you get started the better. SS&C has already begun to see a significant return on investment from implementing these technologies internally within our business process outsourcing teams, realizing cost savings from IPA technologies in some instances up to 50%.
Download our "4 AI Technologies, 10 Benefits for Insurance Investment Operations" guide to dive into the 10 ways AI and its subsets like IPA are transforming investment operations.
Written by Scott Kurland