Factors influencing robotic process automation adoption in the South African insurance industry

Abstract

Robotic process automation (RPA) is fast becoming a key instrument in the digital transformation journey of the insurance market. This software technology presents a wide range of benefits to an insurance organisation, from driving operational efficiencies to improving customer experience. However, despite the vast use cases of RPA evidenced in the global insurance market, the South African insurance industry has proven to be a laggard in adopting RPA. In understanding the slow uptake of RPA by SA insurers, it was important to gain insights on RPA adoption from the perspective of RPA vendors as well as South African insurance professionals. A qualitative exploratory study was conducted to investigate the antecedents and factors influencing RPA adoption within the South African insurance industry.

This study is based on the exploration of multiple ICT adoption frameworks existing in literature, such as user acceptance models used at an individual level and diffusion theories used at an organisational level adoption. A conceptual framework integrating the technology-organisation-environment (TOE) framework, diffusion of innovation (DOI) and technology acceptance model (TAM) was created and used to identify the factors. The empirical findings of this study were based on twelve (12) semi-structured interviews conducted with senior managers within the insurance industry and in the RPA vendor space.

The study reveals that relative advantage, complexity, compatibility, management support, competition pressures and vendor support were perceived to have a positive influence on the acceptance and adoption of RPA. The study also suggests that strategy and government regulations have a non-significant influence on the adoption of RPA, whereas skills in the organisational context were perceived as a negative influence. Interestingly, two new factors emerged from the thematic analysis conducted: while perceived costs were viewed as a negative influence, change management was perceived as a significantly positive influence on the adoption of RPA within the SA insurance industry. The study provides recommendations to leaders to ensure a seamless RPA adoption process.