As per LIMRA in 2020, over 70% of the U.S. citizens said they will apply for life insurance in the coming future. This figure is expected to increase with the coming years as there is a huge section of people that is interested in insuring different facets of their life such as health, life, property, travel, etc. This has thus opened up huge opportunities for the insurance industry.
But sadly, even today, the industry is stuck with old traditional ways of document processing that are slow, inefficient, error prone, and cost intensive.
However, some far sighted organizations in the insurance sector have now started digitizing and automating documentation processes that can in turn help them perform faster, better while helping them meet deadlines on time.
While there are several solutions available in the market, an Intelligent Document Processing(IDP) platform can prove to be a boon for the insurance companies.
For the uninitiated, it is a technology that is capable of capturing information from documents – often regardless of its format or language. IDP is a popular alternative to manual data extraction. It can process documents far quicker than any human can – no matter if the data originates from electronic, structured, or unstructured sources. The outcome of using IDP, for many companies, is that it increases productivity and efficiency in processes that directly and indirectly deal with data.
Yet, before extrapolating the prowess of an IDP platform, it is better to understand the different verticals associated with insurance, what are the most common documents used, and what an IDP platform can do for this sector.
Types of Insurance
The insurance industry is divided in multiple verticals. Here is a list of them and the most common documents used:
It is often known as the most document intensive vertical in the insurance industry as health insurance processes go through a variety of procedures such as quoting, onboarding, underwriting, claims processing, etc. It is difficult to assess these within the deadline considering the amount of documents that are processed. Also, even though the industry has crossed leaps and bounds in terms of modern policy making, and claims workflow, they still lag in terms of document processing. To mitigate that, document data extraction and verification can be automated using an Intelligent Document Processing platform as it can speed up the process by leaps and bounds.
Types of Documents used in Health Insurance
- Identity Proof (U.S. Passport, Certificate of Naturalization, Driver’s license, etc.)
- Proof of citizenship ( U.S birth certificate, school identification card, Northern Mariana Card, etc.)
- Proof of Immigration (Green card, Reentry permit, Notice of Action, etc.)
- Proof of Social Security Number (Social Security Card, Pay Stub Documentation, Military Record, etc.)
Auto insurance primarily covers two liabilities i.e. bodily damage and property damage. Bodily damage refers to the damage caused to individuals i.e. another driver, passenger, pedestrians, etc. On the other hand, property damage deals with damage caused to the property during the accidents. Adding to it, auto insurance also offers a variety of different coverages such as uninsured motorist coverage, personal injury protection, collision coverage, etc. It makes up for loads of unstructured data that is difficult to comprehend with both manual processing and OCRs. This thereby refers to the dire need of a document automation solution such as an IDP platform for auto insurance which not only makes the work faster but also reduces errors during data extraction and verification.
Types of Documents used in Car Insurance
- Driver’s License
- Social Security Number
- Bank Information (credit history, accounts detail, etc.)
- Vehicle Identification Number
- Others (name, date of birth, address, etc.)
Life insurance is offered primarily in two ways i.e. term insurance and permanent insurance. Term life insurance is for a specific number of years while permanent life insurance lasts for life time and offers a designated cash value component. Besides this, life insurances are offered to people in various different plans to choose from. These are whole life insurance, variable life insurance, indexed universal life insurance, group life insurance, etc. Each of these types of life insurances make up for huge piles of unstructured data that requires processing.
Types of Documents used in Life Insurance
- Proof of Death
- Policy Document
- Claims Document
A study by investopedia states that almost half of the Americans faced travel losses during traveling in 2021. Also, out of these numbers 34% were more likely to invest in travel insurance, especially traveling abroad. It points towards another huge market in the insurance sector. There are multiple types of travel coverage offered by insurance companies such as trip cancellation, baggage loss, short-term and major medical coverage, etc. Acquiring customers and providing insurance for travel requires a bunch of documents for onboarding as well as claims processing. It makes up for data that is heavily unstructured in nature demanding a smart document processing solution. An IDP with its capabilities can be the right solution to do the job.
Types of Documents used in Travel Insurance
- Claim Form
- Policy Document
- Trip Tickets
- Airport Correspondence
- Discharge Card
- Hospital Bill
Importance of Document Automation in Insurance Sector
Insurance has multiple use cases for document processing catering to multiple industry verticals. It includes claims processing, data collation, customer onboarding, support document processing, invoice creation, and many more.
The variety of documents aggregated in each of these use cases deals with data that is heavily unstructured. This leads to the failure of traditional methods such as manual processing and OCR for documentation purposes. It is because manual processing is time consuming & expensive while OCRs are incapable of processing unstructured documents. Often companies would often outsource their manual document processing work but it offers less control and is expensive. Also today, it is a lot harder to recruit a data entry operator considering the upcoming masses don't consider it a plausible career.
Having an Intelligent Document Processing platform can tremendously improve the overall efficiency and TAT (turnaround time) for a process completion. Also, the current market that is driven by customer experience and satisfaction can be realized with faster approvals and claims settlement via an IDP platform.
Adding to it, IDP aids in digitization that facilitates better management and storage of data. Also, issues such as lost data, incorrect data, misspelled data, etc are capably handled using a document automation solution such as an IDP. It makes for bulk processing that helps reduce both manual and cognitive overload.
All of the above creates a dire need for the insurance industry to choose a document automation platform. It will not only optimize the documentation process but will also save additional time and cost spent for operations.
VisionERA- IDP Platform for Automating Documentation in Insurance Sector
VisionERA is the latest entry in the IDP space. It offers tons of great features aside from its impeccable capabilities of processing unstructured documents for data extraction and verification in the mortgage industry.
Loaded with compelling features such as contextual data correction, handwritten document data extraction, industry beating table detection system, plug-n-play, etc. VisionERA can be easily installed within an existing infrastructure in both an EDGE-based architecture or cloud. It sorts, segregates, and categorizes data before providing the final output in the format of an excel or CSV file. Adding to it, VisionERA seamlessly integrates with downstream applications such as SAP, ERP, DMS, mails, messages, etc and comes with a smart insights board for useful KPIs. Also, it can extract data from different formats such as handwritten scanned docs, digitally scanned documents, XLS, Excel files, signatures, document QR codes, etc.
Backed by proprietary technologies such as artificial intelligence, machine learning, natural language processing, and computer vision, the platform makes for a complete document processing system that is intuitive and cognitive while operational.
VisionERA can be the future of any document-driven organization to help them reduce manual load and realize deadlines faster without hiccups. It can dramatically reduce the time and cost for claims processing, reduce TAT, figure out fraud, improve subrogation recovery rate, and a lot more.
Insurance is a vast industry catering to different facets of requirements. It comes through a variety of processes such as customer onboarding, audits, claims processing, etc. increasing its complexity. It direly requires an automated document processing solution that can empower them with the burden of huge volumes of data extraction and verification work. It’ll allow them necessary bandwidth to perform core operation and fasten closing multiple cases.
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