How Insurance companies benefit from automated document processing

Insurance companies face the challenge of handling vast amounts of unstructured data contained in documents such as policies, claims, and customer information. Manual processing of these documents is time-consuming, error-prone, and inefficient. However, with the advent of automated document processing software, insurance companies can optimize their operations, improve efficiency, and enhance customer experience. Let’s explore how insurance companies benefit from using automated document processing software.

Automated document processing in the Insurance industry

Intelligent document processing (IDP) solutions use machine learning (ML), natural language processing (NLP), advanced OCR, computer vision and deep learning (DL) algorithms to extract data from unstructured or semi-structured documents solving unique document processing challenges in the insurance industry. IDPs help in automating document processing workflows saving manual processing time and reducing errors. Insurance document automation software can help insurance companies in document classification based on intent, intelligent data extraction from complex unstructured documents, and compare documents from various sources.

Insurance Document Classification

Using AI, insurance companies can automatically classify attached documents based on their intent. This reduces manual tasks in claims processing, improves efficiency, and ensures policyholders receive services faster.

Intelligent Data Capture

IDPs are automated data extraction software that can accurately extract data from various sources, including handwritten notes, email requests, and receipts. This enables claims adjusters to convert unstructured data into usable business data, which can be automatically entered into internal databases, improving data accuracy and efficiency.

Document Comparison

Automated document processing platforms can compare data points from multiple sources with above-human accuracy. This reduces human error in processes such as checking policies against external sources for data validation, resulting in improved data quality.

IDPs are not just automated data extraction tools for insurance industry but have various other uses in improving process efficiency, overall productivity, and even decision making. Here are some ideas for using insurance document automation,

10 Insurance Document automation ideas for optimizing your business

Customer Onboarding

Automating the customer onboarding process can simplify and expedite the enrollment of new policyholders. IDP software can extract and validate customer data from application forms, identification documents, and other relevant paperwork, ensuring accurate and efficient customer onboarding.

Policy Underwriting

Automating underwriting processes reduces errors and manual re-work involved in resolving them. It helps insurers evaluate risks faster, speed up the underwriting process, and make higher-quality decisions on policy applications.

Claims Processing Automation

Automating claims processing streamlines the entire claims handling process, from initial reporting to the final settlement. It improves policy-holder management, reduces costs, improves turnaround times, and provides faster and more accurate customer service.

Customer Service:

Automated email responses and routing enable insurers to provide 24/7 customer service and support. Natural language processing and machine learning technologies can answer common customer questions, resolve simple issues, and escalate complex inquiries to the appropriate department or agent when needed.

Fraud Detection

Automating fraud detection helps insurers identify and prevent false claims, identity theft, and premium evasion. Using preset rules and signature validation, insurers can proactively detect fraud and mitigate risks. Integration with existing fraud models allows for flagging claims that require human intervention for quick batch review before payout.

Data Analytics

Analyzing customer data enables insurers to control data quality for compliance and gain deeper insights into customer behavior, market trends, and risk factors. By integrating automated document processing software with analytics, insurers can get insights from structured and unstructured data and make more informed business decisions, deliver better products and services, and identify cross-selling and upselling opportunities for existing policyholders.

Optimizing Sales Outreach

Intelligent document processing platforms can assess policyholder information, compare it to similar data, and alert sales representatives or brokers of cross-selling opportunities. This helps maximize sales potential by leveraging existing customer data.

Processing Proof of Prior Insurance Documents

Automation simplifies the common step of checking for proof of prior insurance during customer onboarding. By automatically extracting relevant information from policy declaration documents, ID cards, carrier reports, and other documents, insurers can expedite the process.

Automatic Policy Cancellation or Renewal

By leveraging AI to detect intent, automated document processing platforms can determine if an email request is for policy renewal or cancellation. Extracting relevant information from the email or attachment, such as policy number, customer details, and dates, enables the automatic processing of policy changes.

Regulatory Change Management

Insurance companies need to stay updated with regulatory changes and adjust their policies and processes accordingly. Intelligent document processing can aid in monitoring and analyzing regulatory updates, extracting relevant information, and automating the assessment of their impact on existing policies and procedures.

IDP use cases for insurance industry

Benefits of document automation in the Insurance Industry

Cost Savings 

By automating document processing tasks, insurance companies can significantly reduce operational costs. Manual data entry, document handling, and verification processes are time-consuming and prone to errors. With IDP software, these processes can be streamlined, leading to cost savings and improved efficiency.

Faster Claims Processing

One of the significant benefits of IDP software in the insurance industry is the accelerated claims processing. By automating data extraction and document analysis, insurers can expedite the evaluation and settlement of claims. This not only improves customer satisfaction but also reduces the time and resources required to handle each claim.

Enhanced Compliance

Insurance companies must comply with various regulatory requirements and ensure data privacy and security. IDP software can help automate compliance-related tasks, such as verifying policyholder information, cross-referencing data against external sources, and ensuring accurate record-keeping. This reduces the risk of compliance breaches and associated penalties.

Improved Customer Experience

Automation in insurance document processing leads to faster response times, reduced paperwork, and improved accuracy. This, in turn, enhances the overall customer experience. Insurers can provide prompt and accurate information to policyholders, process claims efficiently, and deliver personalized services, leading to increased customer satisfaction and loyalty.

Data Insights and Analytics

IDP software can extract valuable insights from structured and unstructured data. By analyzing customer information, claims data, and policy documents, insurers can gain deeper insights into customer behavior, identify trends, and make data-driven decisions. These insights can drive product innovation, marketing strategies, and risk assessment.

Scalability and Adaptability

Intelligent document processing software is highly scalable and adaptable to evolving business needs. As insurance companies grow and handle larger volumes of documents, IDP software can easily accommodate increased workloads and handle diverse document formats. This scalability ensures long-term value and ROI for insurance companies.

Docketry for Insurance document automation

Docketry is an advanced IDP solution that can process complex unstructured documents with high accuracy. Docketry’s confidence scores and analytics help in additional validation ensuring that errors do not creep into the data. With pre-built APIs and SDKs, insurance companies can easily seamlessly integrate Docketry into existing processes, customize for your needs and automate document workflows. In addition to fast and accurate data extraction, Docketry offers document search for easy document archiving and retrieval, sentiment analysis for providing better customer service, and signature validation for fraud detection. To know how Docketry can address your specific use case, talk to our team today.