Straight-Through Processing: A Proven Driver of Insurance Efficiency

While widely adopted, especially by larger insurers, the percentage of processes handled through straight-through processing (STP) varies across the industry. Despite its relative maturity, STP remains a powerful lever for improving operational efficiency. Even incremental gains in automation can lead to significant savings in time, resources and customer satisfaction. And with the introduction of AI into insurance operations, STP will evolve to become more accurate, more adaptable and more essential than ever.

While widely adopted, especially by larger insurers, the level of straight-through processing (STP) varies across the industry. Despite its maturity, STP remains one of the most effective ways to increase operational efficiency. Even incremental gains in automation can offer significant savings in time, cost and resources, not to mention customer satisfaction. With the rise of AI, STP is evolving, becoming smarter, more adaptive, and more essential than ever.

The Quiet Engine Behind Efficiency

In conversations about digital transformation, technologies like AI, cloud and predictive analytics often take centre stage. Yet STP remains one of the most consistent, daily sources of operational improvement. It automates the handling of routine (sometimes going as far as mundane), rule-based tasks, such as underwriting standard policies or processing straightforward claims. This automation allows insurers to manage growing workloads and customer expectations with greater speed and consistency.

Many insurers already apply STP, particularly those with complex or high-volume operations. However, automation levels vary depending on product complexity, data quality and core system flexibility. Some achieve over 90 percent automation in specific lines, while others are held back by outdated processes and legacy systems.

Regardless of where an organisation starts, the benefits of STP are clear. It shortens turnaround times, lowers operational costs and allows skilled employees to focus on tasks that require their expertise.

Proving the Power of Automation 

One insurer working with Keylane’s Axon platform offers a clear example of what STP can deliver. By configuring tailored automation criteria, they have streamlined large portions of their daily operations. 

• Around 95 to 98 percent of standard policy requests are now processed automatically 

• Approximately 75 percent of bike claims are handled without manual intervention 

These outcomes reflect real operational improvements. Customers benefit from faster responses, while internal teams gain efficiency and capacity. STP allows underwriters to focus on more complex cases, reducing back-office strain and improving overall service delivery. 

Why STP Still Matters Today

Despite being in use for many years, STP remains highly relevant for three main reasons:

1. Volume is increasing. As insurers expand across digital channels and introduce new products, the number of transactions continues to grow. STP helps manage this efficiently.
2. Expectations are changing. Customers expect faster decisions and seamless experiences. STP enables the responsiveness required to meet these expectations.
3. Resources are stretched. Skilled professionals are in short supply and often overwhelmed. STP frees up their time for more strategic work.

AI: Enhancing the Future of STP

As we have hopefully proven, straight-through processing is already a driver of operational efficiency. Many insurers using platforms like Axon are achieving high automation rates, lower costs and faster service. But, like everyone else, we at Keylane are also excited to see how these existing capabilities can be further enhanced with AI.

Traditional STP relies on fixed rules. AI adds intelligence to these rules, using real-time insights and pattern recognition to optimise outcomes.

Here’s how AI is expanding the value of STP:

• Improved accuracy. AI can reduce the risk of false approvals or rejections by identifying more nuanced decision points.
• Higher automation rates. With better data quality and decision support, more processes can be safely and efficiently automated.
• Faster optimisation. AI tools can help insurers adjust STP rules based on live data, allowing for continuous improvement.

Together, AI and STP create smarter automation. Routine decisions are handled automatically, while complex cases are escalated to experts. This hybrid approach keeps humans in control, supported by real-time insights and intelligent workflows.

Where to Start: Expanding STP in Your Organisation

Whether you are just starting to automate or ready to scale existing efforts, these steps can help insurers maximise STP:

1. Map key workflows. Identify high-volume, rule-based processes that can be standardised.
2. Set flexible rules. Use configurable platforms like Axon to define business-owned STP logic.
3. Apply AI where it counts. Integrate real-time insights to refine decisions and expand automation intelligently.
4. Monitor and refine. Use reporting and analytics, such as Axon’s Data Mart, to track performance, uncover trends and continuously improve based on real-world data.

Conclusion: The Foundation for Scalable Operations

STP remains one of the most effective ways to increase operational efficiency in insurance. It delivers measurable gains in speed, quality and cost control, especially when supported by modern, configurable platforms like Axon.

Combined with AI, STP is no longer just about automation. It becomes a strategic tool that supports agility, customer experience and long-term growth.

At Keylane, we see STP as a critical enabler for the insurance industry’s future. It may not always be in the spotlight, but its impact is unmistakable.

Ready to streamline operations and unlock tomorrow? Contact us!