• December 3, 2020
RPA Cited as Growth Factor for Insurance Stocks

A recent report looking at stocks’ expected performance in the recently completed fourth quarter identified several in the insurance industry that would beat estimates. As a sector, the report on Nasdaq.com said an index tracking stock prices in the insurance industry rose more than 14 percent over the past year, outperforming the broader finance sector, which grew just over 12 percent during the same time.

As the public waits for Q4 results, the report said investors in the insurance space would enjoy positive returns. And, some of that success, in addition to a strong economy and low interest rates, could be attributed to surging use of RPA in the sector.

“Increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation may have expedited business operations and saved cost,” the report said.

The insurance industry has been a prime consumer of robotic process automation technology for several years and, according to a report from Juniper Research, adoption of RPA by insurers only will accelerate. In the next four years, the U.K.-based consultancy said in Robotic Process Automation in Telecoms & Insurance: Vendor Positioning, Strategies & Forecasts 2019-2024, insurance companies will spend $634 million annually on RPA, up from $184 million in 2019.