Process Mining in Insurance

Insurance companies face a variety of challenges. Increasing expectations with regard to the fast and uncomplicated processing of insurance claims collide with the often time-consuming handling of claims processing and policy administration processes. Here, rising expectations regarding the fast and uncomplicated processing of insurance claims collide with the often time-consuming handling of processes relating to claims processing and policy administration. Digitalization brings opportunities, but also additional challenges, especially in the insurance industry - insurance companies process highly sensitive data, which is why ensuring data security is of central importance for insurance companies. Risk assessment is also becoming increasingly complicated due to the intensification of climate change and the associated new risk patterns and accumulation risks. Traditional risk models are reaching their limits here - risk assessment analysis requires a new, data-driven approach.

Process Mining offers insurance companies an innovative approach that tackles the new challenges constructively. The technology makes it possible to reconstruct, analyze and optimize actual business processes based on digital traces in IT systems. By systematically evaluating event logs from various systems such as claims management platforms or CRM systems, Process Mining creates transparency across complex, cross-departmental processes. This enables insurance companies to identify inefficiencies and bottlenecks in core processes such as claims processing or underwriting and to rectify them in a targeted manner.

Process flows in insurance companies are often not very transparent, which makes them susceptible to hidden inefficiencies. Particularly in larger insurers, information is often lost due to complicated, cross-departmental processing procedures in which claims are forwarded several times. This leads to delays, which ultimately result in increased costs. Inefficiencies arise in policy management due to inconsistent processing standards and a lack of process automation. Weaknesses are also evident in underwriting, for example when risk assessments have to be revised several times due to incomplete information or application processing comes to a standstill due to unclear responsibilities. Manual review steps and redundant document requirements complicate these processes and cause further delays.

Process Mining helps insurance companies by analyzing the actual processes in insurance administration using objective data. The technology systematically evaluates data from claims management systems, CRM platforms and document management systems, allowing insurance companies to uncover optimization potential. For example, delays occurring in claims processing become visible, such as when certain processes take an above-average amount of time in individual departments or documents have to be repeatedly requested. Process Mining ensures greater efficiency in policy management by identifying delays in policy changes, uncovering inefficient processing loops and supporting the standardization of processes. Systematic analysis makes it possible to identify best practices and transfer them to similar processes.