RPA in Insurance Market Expected to Reach $1.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “RPA in Insurance Market," The rpa in insurance market was valued at $98.56 million in 2021, and is estimated to reach $1.2 billion by 2031, growing at a CAGR of 28.3% from 2022 to 2031.

Robotic Process Automation (RPA) is widely used in the insurance industry to automate repetitive and time-consuming tasks, such as claims processing, policy renewals, premium calculation, and data entry. By automating manual processes, insurance companies can reduce the time & effort required to complete tasks, freeing up employees to focus on higher-value activities, such as customer engagement and relationship building. Moreover, the implementation of RPA in the insurance industry can bring numerous benefits and positive outcomes for the companies that adopt it. In addition, RPA can automate repetitive and time-consuming tasks such as data entry, policy renewals, premium calculations, and claims processing that help to reduce the workload of employees to focus on more strategic and customer-facing activities. This leads to improved operational efficiency, increased accuracy, reduced processing times, and improved customer experience.

Furthermore, it also helps insurance companies to reduce operating costs and minimize the risk of human error, on the other hand, also ensuring compliance with industry regulations and standards. Overall, RPA is scalable, allowing companies to easily adapt to changing business needs and maintain their competitive advantage. In conclusion, these RPA in insurance market trends can drive significant improvements and support the growth & success of insurance companies. 

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in 2021, Automation Anywhere, Inc. a leader in robotic process automation (RPA), and Google Cloud have involved in a strategic partnership. This multi-year collaboration or partnership is useful to accelerate intelligent automation adoption with enterprises on a global scale. With this partnership, Automation 360 platform is expected to be available on Google Cloud, and the two companies can mutually develop AI- and RPA-powered solutions, bring RPA capabilities to multiple Google Cloud products, and closely align go-to-market teams to help global businesses scale RPA capabilities. Therefore, such a strategy helps to augment the RPA in insurance market growth. 

On the basis of deployment mode, the on-premise segment is the highest growing segment. This is due to the fact that on-premise deployment model allows installation of the software and enables applications to run on existing systems in the premises of organizations, rather than at a distant facility such as server space or cloud. And thus, by doing this, on-premise RPA solutions can easily integrate with existing systems, making it easier for companies to adopt RPA. However, the cloud segment is considered to be the fastest growing segment during the forecast period. This is attributed to the fact that as the technology is developing, the adoption of  cloud-based RPA solutions are increasing and it is highly scalable as cloud based RPA  allows insurance companies to quickly expand their automation capabilities as their business grows, thus this is expected to lead to the growth of the market in the upcoming years. 

By region, North America attained the highest growth in 2021. This is attributed to the fact that in North America, manual labor charges are high, therefore, by adopting RPA software technology, it reduces the need for manual labor, decreases operational costs, and improves efficiency, which lead to significant cost savings for insurance companies in North America. However, Asia-Pacific is anticipated to be the fastest growing segment during the forecast period. This is attributed to the fact that, RPA in insurance is being driven by the rise in the occurrence of several new technologies in Asia-Pacific. Moreover, integration with AI technologies, such as natural language processing and machine learning, are expected to provide more advanced solutions in the insurance industry for the automation and efficiency of work in this region.

The COVID-19 pandemic has had a significant impact on the insurance industry, and has also accelerated the adoption of RPA in the insurance sector. However, pandemic has accelerated remote work therefore, shift to remote work due to the pandemic has increased the demand for RPA, as insurance companies look for ways to automate manual processes and maintain productivity. Moreover, increase demand for automation during pandemic has highlighted the importance of automation for maintaining business continuity and reducing operational risk. This has led to increased demand for RPA solutions in the insurance industry. The pandemic has accelerated the need for digital transformation in the insurance industry, and RPA is playing a key role in this transformation.

Furthermore, the COVID-19 pandemic has led to a surge in insurance claims, particularly in the health and life insurance sectors. Therefore, RPA in this sector has helped insurance companies to process these claims more efficiently, reducing response times and improving customer satisfaction.  Thus, pandemic has increased the demand for virtual customer service, and RPA has helped insurance companies to automate these processes, reducing response times and improving customer satisfaction. Thus, overall, the impact of the pandemic on the RPA in insurance market has been mixed, with some sectors seeing a boost in activity while others have struggled. Therefore, the COVID-19 moderately impacted the RPA in insurance industry.

Key Findings of the Study

• By component, the solution segment led the RPA in insurance market size in terms of revenue in 2021.
• By enterprise size, the large enterprise segment led the RPA in insurance market share in terms of revenue in 2021.
• By application, the claim processing segment led the RPA in insurance market in terms of revenue in 2021.  
• By region, North America generated the highest revenue in 2021.

The key players profiled in the RPA in insurance market analysis are Aspire Systems, Automation Anywhere, Inc., Dynpro, Fidel Technologies, Infosys Limited, Opteamix, Pegasystems, Inc., Royal Cyber Inc., UiPath, and Vuram. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.