About 97% of the data the insurance industry process are unstructured. The wealthiest information resides in the adjuster’s notes’ unique words, acronyms, and abbreviations. Insurance firms use less than 3% of the data they receive to make decisions; considering the size of the insurance industry, this is a staggering revelation. Intelligent document processing (IDP) can process unstructured data helping you to increase customer satisfaction, process efficiency, and business performance.
Gartner reports that,
- Intelligent document processing (IDP) is one of the tech trends with the highest short-term benefits for the insurance industry.
- Despite the benefits, only 1% of insurance CIOs have already implemented an IDP project.
Every step in the insurance process primarily depends on documents. Most of the documents are handwritten, PDFs, and images. When humans process insurance documents, it is prone to errors, delays, and false assumptions, which can lead to significant issues. Thus, IDP is the best choice for sensitive documents as it promotes better compliance and outcomes.
Before we get into how IDP solves the actual bottlenecks in the insurance industry, it is essential to look at the conventional claim processing model to witness the impact of IDP in the actual insurance sector.
Insurance claim processing steps
There are various kinds of insurance. Each has its flow of steps. The standard claim process starts with reporting the event with proof. It involves a series of steps where different documents are processed, and most are unstructured, increasing the complexity and the time to process. The steps involved are
- Reporting – All the event-related documents are submitted, and the claim request is raised. A human officer is assigned to look into the claim. From here, all the process is done manually.
- Initiation of the investigation – The officer investigates and determines the amount of the claim covered by the insurance policy.
- Policy review and evaluation – After the investigation, the adjuster reviews the policy, takes expert advice, and evaluates the extent of damage that can be covered.
- Payment – The claim officer initiates payment for the claim and updates the policyholder.
Proper claim processing is a complex task requiring numerous administrative, managerial, and manual efforts to extract the necessary data. In the conventional method, there is heavy reliance on human labor, prone to errors that cost more, leading to missed customers and revenue. Furthermore, you can automate this complex task using IDP nurtured with advanced AI capabilities that can quickly identify different types of documents and intelligently extract valuable information easily from unstructured data.
Benefits of automated insurance claim
The insurance industry relies heavily on documentation. Automation is intricate due to the complexity of unstructured documents. The policyholder’s claim documents go through several steps to be validated. It eventually leads to the resolution of insurance claims. IDP for insurance claim processing will reduce the claim process time with the best features of Optical Character Recognition (OCR), AI-powered automated workflows, intelligent data extraction, and an intelligent engine that can learn as it processes more documents. It provides higher accuracy and high ROI. Also, benefits of IDP in insurance claim processing are as follows,
Seamless process of unstructured data
To process a claim, an agent must collect information from various sources and enter it into a database. The procedure is laborious and time-consuming. Repeating the same tasks cause errors and severe inconsistencies in company records. On the other hand, IDP can automate these processes as it has an advantage over all of these pitfalls.
IDP processes a broader range of documents more precisely and can fully automate insurance claim processes, including data download, classification, and the compilation from external sources. It can collect and analyze similar data from various sources like email attachments, transcripts, scanned agreements, etc. It can read, sort, analyze, and route emails.
Easy integration with legacy applications
Insurance firms depend on legacy apps, programs, and systems to manage business operations. Implementing new software, like BPM or ERP systems, they have to replace existing hardware and retraining employees, which requires significant time and financial investments. Due to this, they cling to outdated systems knowing they are not efficient enough to support increasing business needs.
RPA + IDP
Automation use cases in insurance include automating operations in legacy applications. RPA bots can use existing user interfaces, so there is little or no need to change existing legacy systems. These bots can mimic human clicks and keystrokes, making them simple to integrate with existing software and hardware. It can connect legacy and new systems without requiring any coding. They switch between various systems and applications while performing claims processing, underwriting, customer service, onboarding, and other operations.
Using RPA alone for automation will not guarantee results as it will only allow you to automate individual tasks. Using IDP + RPA with powerful AI capabilities, on the other hand, will allow for complete process automation. On one hand, It automates the cognitive portion of the task, and on the flip side the human-in-loop approach provides exception-handling capabilities.
Intelligent document processing (IDP) for insurance claim processing has high scalability with demonstrated value as below
- 30–40% reduction in the process cost
- 50% high efficiency
- 80–90% increase in accuracy
- 80% increase in delivery speed
- 30% reduction in capacity
- 50% increase in business performance
- 100% regulatory compliance
- 50% increase in customer satisfaction
How can we help?
If you are looking for a perfect insurance claim processing solution that can provide you with an edge irrespective of the document format and data structure, then you are at the right place.
We have an exceptional IDP solution for you that can provide you with an exponential increase in your business performance. We understand that your data needs the utmost security. With us, you can experience 100% regulatory compliance and data security.
Take your first step to automation with SAXON