Automation in insurance is the way to go

Automation in insurance to reduce costs

From paperwork and claims processing to manual data entry and policy management, the insurance industry is rife with time-consuming tasks. By automating even a few of these processes, insurance companies of all sizes can optimize operational efficiencies, reduce costs, and underwrite with greater accuracy. 

Automation is sweeping through an increasingly digitalized insurance industry. While there are several solutions on the market that are designed to automate insurance processes, not all of these solutions are created equal.

Tired of manual data entry? Find yourself spending too much time processing the same forms? No matter the limitations of your existing legacy system, an AI-based insurance automation solution could be the answer you’ve been looking for. 

Why manual invoice data capture is bad for your company

Is your document processing department growing? At the same time, does your company deal with lost documents, complaining vendors, and unhappy clients?

If so, you may want to re-evaluate your manual data capture system and consider possible upgrades.

Automation in insurance

The insurance space, of course, is a highly regulated industry. Insurance companies must process substantial amounts of paperwork in their regular course of business every single year to stay compliant with stringent rules and regulations. Insurers must therefore manage and process policies, health insurance claim forms, incident reports, and many other documents.

Furthermore, because of the many rules in place governing insurance, claims paperwork needs to be processed in a highly accurate and secure manner. At this point, insurance companies can’t afford to make a mistake—the stakes are too high, quite frankly. 

Even as accuracy and specificity remain imperative across all insurance industry paperwork, many insurance companies continue to rely on manual data entry for their document processing needs. This process often begins with back office employees carefully reading through completed forms. 

After working through returned paperwork, they’ll then type compiled data into an electronic application. These electronic applications can be sent to their destination system, stored, or used as needed.

There are several laws governing the storage and processing of data contained in insurance documents. However, the data you’ll find in paper documents or even scanned PDF files remains unstructured. 

The result? The computer systems used to analyze and store data will not be able to understand or process unstructured data. That’s why it must be converted. 

There are obvious downsides for insurance companies that rely on manual data entry as their primary method to process documents. 

The good news? Savvy insurance professionals have recognized these issues and are beginning to seek out and implement automated insurance solutions. The value of automation solutions drastically reduces the time and effort companies spend on manual data entry. 

When it comes to automation in insurance, automating paperwork is undoubtedly one of the most effective ways to save time and cut costs. With Rossum’s powerful AI-driven automation solutions, insurance companies are not only able to process their documents in record time, with record accuracy, but employees become freed up to focus on more value-add tasks. 

Just think about the mountain of paperwork back office teams face when asked to carry out data entry duties manually. The beauty of Rossum’s automation is that no one has to assume responsibility for day-to-day manual data entry ever again. 

Plus, by automating your data entry process, through a few clicks on your smartphone, you can immediately gain access and visibility into your entire document processing operation. 

And that’s not all—there are many potential benefits of using AI technology that can be seen across various insurance industry applications. 

Innovation in insurance automation: Alternatives to manual entry

Emerging developing technology trends are now poised to revolutionize nearly every aspect of the insurance industry. For example, consider self-driving cars. What was once considered science fiction in the past has now become a reality. 

With AI instead of humans behind the wheel of automobiles, the auto insurance industry will have to develop new ways of calculating risks. 

And this one example is only the start. Innovations across insurance figures to bring sweeping changes across the industry. A recent McKinsey study outlined five major technological trends that are set to take hold of the insurance industry. 

1. Applied Artificial Intelligence

To date, the insurance providers that have genuinely taken advantage of AI’s many business benefits remain few and far between. As AI becomes increasingly prevalent, insurance companies will be able to transform core processes to become more predictive. 

Machine learning and neural networking will enable insurers to implement AI-enabled core processes, which combine the emotional connection of the human touch with the computing power of predictive technologies. Furthermore, the ability to create impactful insurance products using AI technologies will drive new growth for forward-thinking insurers. 

2. Distributed infrastructure

Many of the biggest names in the insurance space continue to maintain large technological installations, which leaves them heavily bogged down by sky-high processing costs. Enterprise-grade cloud technologies are rapidly growing in popularity for a good reason. 

Why? For starters, as more insurance companies shift their core systems to the cloud, insurers can operate with greater speed and roll out new products with more agility. The cloud harnesses a whole new world of computing power—a magnitude of capacity that is required to analyze data and extract insights from insurance companies large-scale databases. 

3. Future of connectivity

The Internet of Things (IoT) is another technology that figures to make a significant impact on the insurance business. Special devices in vehicles have already been used to monitor risk and collect data which is, in turn, used to develop insurance products and assess risk across current policies. 

This specific, real-time data collection will filter into other areas of the insurance business. Insurers can more effectively account for risks when developing new policies and products. Customers will also benefit from insurance companies being able to gauge their needs better.

4. Next-level process automation

Process automation is well underway across the insurance industry and only figures to gain steam. If you’re still questioning the impact of innovation in insurance industry organizations, look no further than the power of AI-driven automation. No technological trend has a greater ability to streamline paperwork and increase enterprise efficiency. 

So what’s next on the innovation front? 

Robotics in insurance processes have already been implemented and continue to be developed. Life insurance software, similarly, has been designed to help companies manage all the forms and files associated with specific processes. 

When it comes to next-level process automation, Rossum is an advanced Intelligent Document Processing (IDP) platform that gives you the ability to automate a variety of document-based processes completely. 

5. Trust architecture

The fifth and final innovation revealed in the study looks at the impact of new trust architectures  in cybersecurity. In the future, as customers share more sensitive data, enabling insurance companies will have a greater ability to predict—and prevent—events that could lead to claims down the line. 

Having sensors implemented on certain machines in a factory, for example, could allow either the customer or the insurance company to shut down a process and make repairs before the problem damages the facility

Securing this data will be a major priority. The blockchain, zero-trust security mechanisms, and other similar approaches can all play a vital role in the securitization of valuable insurance data. 

Insurance automation software

Generally, the term “insurance automation software” refers to applications and solutions that are specifically designed to streamline and simplify various back-office processes. 

The problem with manual data processes is that they create unnecessary opportunity costs for insurance companies, taking too much time away from high-value tasks. Automating these tasks enables businesses to upgrade productivity levels across the entire organization. Need more proof? 

Deloitte’s Insurance Industry Outlook revealed that organizations that implement automation enjoy a 68% increase in productivity. 

In an increasingly digital business landscape, from sales to accounting, there is a wide range of use cases and applications for automated insurance solutions. Virtually all operations in the insurance space deal with copious amounts of paperwork. A high-speed automation solution precisely powers paperwork processing to optimize company-wide operational efficiencies.

An intelligent automation platform for document management is one solution that underscores the value of AI’s use in insurance. One of the critical components of a document management platform is an optical character recognition (OCR) engine. 

OCR engines automatically scan characters and extract data in business documents for use in other systems. Other important features include multi-channel capabilities, easy-to-use validation features, and a versatile API for integration into other systems. 

Automated claims processing

Let’s return to automated claims processing. Customers will file a claim to their insurance company whenever they experience a loss that they believe is covered by their policy. Managing these claims is vital to fight fraud and ensuring that only valid claims are paid out. 

By automating insurance claims processing, companies can effectively safeguard confidential customer data and eliminate the need to extract data from claims manually. The most high-powered IDP platforms utilize AI and machine learning to automatically recognize and accordingly process data from incoming claims This is what cognitive automation insurance solutions look like in action at their best. 

Benefits of AI in insurance automation

Manual data entry is slow, expensive, and error-prone. Having your employees allocate their limited time to perform these tasks doesn’t make sense when you can automate data entry and achieve better results. That’s where Rossum’s solutions come into the picture. 

Rossum advanced AI technologies automate data capture with superior accuracy. Our solutions harness the full potential of AI’s value in insurance. Businesses around the world partner take advantage of a comprehensive IDP platform when they partner with Rossum, which serves as a document gateway that can simultaneously streamline several aspects of your document-based processes. 

Whether your documents originate in emails or other systems, Rossum’s platform can easily manage various channels that receive and process documents. Our solutions rely on our unique computer vision technology, which can read forms and capture data from documents at blindingly fast speeds—all with great precision and accuracy. 

Rossum doesn’t seek to replace humans—on the contrary. We intentionally designed an easy-to-use validation interface that allows your employees to quickly and easily verify data captures from documents. 

If you’re looking to reduce your manual data entry by 90% and turn your documents-process from cost centers to profit producers, it’s time to consider Rossum’s powerful insurance automation platform.