How to Implement Workflow Orchestration Software for Insurance Companies
Enterprise insurance companies are obsessed with the term workflow orchestration for a good reason. Automation tools are built to streamline processes and make workflow easier. However, it can quickly become a nightmare for users if complex workflows are not orchestrated properly.
It can lead to a dumping ground of tools that are not yielding any return on investment.
Workflow orchestration can be defined as organizing multiple automated tasks to create a smooth, well-oiled workflow.
This empowers insurance companies to maximize the full potential of their workflow automation tools, ensuring that tasks are carried out in the right order and that there is an efficient transfer of data from one point to another without creating data silos or breaching regulatory compliance.
Workflow Automation vs Workflow Orchestration
There’s a fine line between workflow automation and workflow orchestration. I used to think they were the same at some point. However, they are not and I will discuss the difference with you in the following paragraph.
Workflow Automation: Workflow automation means automating the process involved in carrying out a specific task. The scope of workflow automation is limited to the specific task involved. For example, automating an email campaign to send email sequences at certain times of the day or automating invoice generation.
Workflow Orchestration: Workflow orchestration involves managing and organizing multiple tasks to achieve a bigger goal. The scope of workflow orchestration covers multiple tasks and often involves different departments. This ensures a smooth synergy between each task involved in achieving a complex goal. An example is orchestrating the workflows involved in the entire customer onboarding process involving different departments, apps, or decision-making processes.
In summary, while workflow automation is concerned with automating a specific task, workflow orchestration is concerned with organizing multiple tasks to achieve a goal
The foundation of workflow orchestration is in translating processes into a visual workflow. There are some of the benefits of translating processes into a visual workflow.
- Clarity: Visual representations make complex processes easier to understand at a glance.
- Collaboration: Shared visual models facilitate discussions and collaboration among stakeholders.
- Documentation: The visual workflow can actually serve as a living document that accurately reflects work processes.
- Identification of Bottlenecks: Visualizing the workflow can highlight inefficiencies and areas for improvement. It also highlights areas that might breach insurance regulations
- Task Dependencies: Visual workflows enable businesses to see the order and relationships between tasks.
Drag-and-drop automation tools like Activepieces and Zapier enable businesses to create visual representations of their workflows.
Common Task Categories and Insurance Workflows That Fall Under Them
Here are common task categories and insurance workflows that fall under them
Repetitive Tasks:
- Data Entry: Filling in customer information, policy details, and claim specifics across various forms and systems.
- Policy Renewal Processing: Sending out renewal notices, collecting payments, and updating policy information.
- Generating Standard Reports: Creating routine reports on claims, policies, or customer demographics.
- Sending Out Automated Emails: Triggering emails for appointment confirmations, policy updates, or claim status notifications.
- Data Verification: Checking customer information against external databases to ensure accuracy.
Rule-Based Tasks:
- Underwriting Decisions: Applying pre-defined rules based on risk factors to determine eligibility and premiums.
- Claims handling: Routing claims based on type, severity, and pre-set criteria for faster processing.
- Policy Cancellation Processing: Following established procedures for cancellation requests.
- Approval for Low-Value Claims: Automating approvals for claims below a certain threshold amount.
- Applying Discounts: Automatically applying discounts based on customer profiles or policy features.
Data-Driven Tasks:
- Pricing Calculations: Using customer data and risk factors to calculate insurance premiums.
- Identifying High-Risk Customers: Proactively identifying customers at higher risk for claims based on data analysis.
- Predictive Maintenance: Analyzing data from connected devices (e.g., smart homes) to prevent potential losses.
- Marketing Automation: Sending targeted marketing campaigns based on customer data and purchasing habits.
How to Orchestrate Insurance Workflows Based on Task Categories
Before going into the workflow orchestration, we should begin by breaking down the manual processes involved
Repetitive tasks
Understanding the manual process
- Identify policies nearing renewal: This involves checking policy databases for policies with upcoming expiration dates.
- Generate renewal notice: Create a personalized renewal notice based on policy details.
- Calculate premium: Determine the renewed premium based on policy terms and any adjustments.
- Update policy system: Reflect the new premium and renewal date in the policy database.
- Send renewal notice: Deliver the renewal notice to the policyholder (email, mail, or both).
- Follow-up: Implement a process for handling non-renewals or payment failures.
Putting the pieces together using workflow orchestration will look like this:
Trigger:
Timer: Schedule the workflow to run daily or weekly to check for upcoming renewals.
Actions:
Retrieve Policy Data:
- Drag and drop a "Get Data" or "Database Query" piece.
- Configure it to query the policy database for policies with upcoming renewal dates.
Iterate Through Policies:
- Use a "For Each" loop to process each policy individually. Generate Renewal Notice:
- Use a "Word Document" or "Email" piece to create a personalized renewal notice.
- Populate the document with policyholder details, renewal date, and new premium.
Calculate Premium:
- Use a "Calculation" piece to determine the new premium based on policy terms and any adjustments.
Update Policy Database:
- Utilize a "Database Update" piece to modify the policy record with the new premium and renewal date.
Send Renewal Notice:
- Employ an "Email" or "Mail Merge" piece to send the renewal notice to the policyholder. Handle Non-Renewals/Payment Failures:
- Use conditional logic to handle scenarios where the policyholder doesn't renew or fails to pay.
- This might involve sending reminder emails, generating cancellation notices, or updating policy status.
It is important to also make provisions for handling errors or data inconsistencies
Rule-based Tasks
Rule-based tasks in insurance often involve decision-making based on predefined rules.
Understanding the manual process:
- Data collection: Gather applicant information, medical history, and other relevant data.
- Risk assessment: Evaluate the applicant's risk profile based on predefined underwriting rules.
- Decision making: Determine eligibility and premium based on risk assessment.
- Policy issuance: Generate and issue the policy.
Putting the pieces together using workflow orchestration will look like this
Trigger:
Data availability: Trigger the workflow when complete applicant data is available.
Actions
Data Collection:
- Data extraction: Automate data extraction from various sources like application forms.
- Data validation: Program rules to ensure data completeness and accuracy.
Risk Assessment:
- Decision rule: Create a rule to define underwriting rules.
- Data mapping: Create a piece to map applicant data and check if it aligns with the rules in the decision piece.
- Rule evaluation: Set rules to calculate risk score based on data alignment with the decision table.
Decision Making:
- Conditional logic: Use conditional rules to determine eligibility based on defined risk scores.
- Premium calculation: Calculate premium based on risk profile and pricing models.
Policy Issuance:
- Document generation: Generate policy documents using templates and variable data.
- System updates: Update the policy database with policy details.
Notifications:
Send notifications to the applicant and underwriter based on the decision outcome.
Data-driven Tasks
Data-driven tasks in insurance often involve analyzing large datasets to uncover insights, trends, and patterns.
Understanding the Process:
- Data collection: Gather customer data
- Data preparation: Prepare data for analysis.
- Customer segmentation: Group customers based on defined criteria
- Marketing campaign creation: Develop targeted marketing campaigns for each segment.
- Campaign execution: Deliver marketing messages through appropriate channels.
Putting the pieces together using workflow orchestration will look like this:
Trigger:
The trigger can either be scheduled or based on certain conditions.
Action
Data Collection:
- Data extraction: Use drag-and-drop pieces to extract data from various sources.
- Data consolidation: Extract the combined data into a unified dataset like an array.
Data Preparation:
- Data cleaning: Loop through the array, remove duplicates, handle missing values, and correct inconsistencies.
- Data transformation: Create derived variables and aggregate data as needed.
Customer Segmentation:
- Data mining: Apply clustering or segmentation algorithms to group customers.
- Profiling: Create customer segments based on defined criteria.
Marketing Campaign Creation:
- Campaign design: Create marketing messages and offers tailored to each segment of your insurance audience.
- Campaign schedule: Determine campaign timing and frequency.
Campaign Execution:
- Channel selection: Choose appropriate marketing channels like email, SMS, and direct mail.
- Campaign delivery: Send marketing messages to target segments.
Performance Measurement
- Campaign tracking: Monitor campaign performance metrics
- Campaign optimization: Adjust campaigns based on performance data.
Frequently Asked Questions
1. What is workflow orchestration in insurance?
Workflow orchestration in insurance refers to organizing and managing multiple automated tasks to ensure smooth operations. It ensures that different processes—such as underwriting, claims processing, and policy renewals—are carried out in the correct order, improving efficiency and reducing errors.
2.What is the difference between workflow orchestration and workflow automation?
Workflow automation focuses on automating individual tasks, like sending emails or generating invoices. Workflow orchestration, on the other hand, involves managing and coordinating multiple tasks across departments or systems to achieve a larger goal, such as the entire customer onboarding process.
3. Why is workflow orchestration important for insurance companies?
Workflow orchestration is crucial for insurance companies because it optimizes the use of multiple automation tools. It prevents data silos, ensures compliance with regulations, and improves the efficiency of complex workflows such as claims processing and underwriting.
4. How can insurance companies benefit from visual workflows in orchestration?
Visual workflows provide clarity by allowing companies to see their processes at a glance, making it easier to identify bottlenecks, task dependencies, and areas for improvement. This also enhances collaboration, documentation, and regulatory compliance.
5. What are some common insurance tasks that can be automated and orchestrated?
Common insurance tasks include data entry, policy renewal processing, underwriting decisions, claims handling, and pricing calculations. Workflow orchestration ensures these tasks are handled in a coordinated manner, reducing inefficiencies.
6. What role do rule-based tasks play in insurance workflow orchestration?
Rule-based tasks involve decision-making based on predefined criteria, such as underwriting or claims approval. Workflow orchestration helps streamline these tasks by ensuring that the right rules are applied and that processes are consistent and compliant.
7. What tools can be used to orchestrate workflows in the insurance industry?
Insurance companies can use tools like
8. How does workflow orchestration improve customer experience in insurance?
By streamlining and automating repetitive and rule-based tasks, workflow orchestration allows insurance companies to respond to customer inquiries faster, reduce processing times for claims, and provide personalized services, ultimately improving customer satisfaction.
9. Can workflow orchestration help in regulatory compliance for insurance companies?
Yes, workflow orchestration helps ensure that insurance processes comply with regulatory standards by keeping track of task dependencies, automating compliance checks, and providing audit trails for regulatory reviews.