Automation in insurance is the way to go
The insurance industry is full of time-consuming tasks associated with manual data entry, claims to process, and policy management. By automating these processes, insurance companies can improve efficiency and accuracy while reducing costs. Automation in insurance is necessary to improve the industry overall.
Why manual invoice data capture is bad for your company
If your company is dealing with lost documents, complaining vendors and unhappy clients, while your document processing department is growing, you may want to re-evaluate your manual data capture system.
Automation in insurance
The insurance space is a highly regulated industry. This is a big part of why insurance companies are required to process so much paperwork every single year in the course of their business. Policies, health insurance claim forms, incident reports, and many other kinds of documents need to be managed and processed. Furthermore, because of the many regulations surrounding insurance, this paperwork needs to be processed in a highly accurate and secure manner. The stakes are too high, and you can’t afford to make a mistake.
Because accuracy and specificity are major requirements for insurance industry paperwork, many insurance companies continue to rely on manual data entry for their document processing needs. This process consists of employees carefully reading through completed forms and returned paperwork and then typing that data into an electronic application where it can then be sent to its destination system and stored or used as needed.
There are several laws governing the storage and processing of the data in these documents. However, the data in paper documents or even scanned PDF files is unstructured. This means that the computer systems used to analyze and store this data will not be able to understand it or use it in their processes. That’s why it must be converted.
However, there are several downsides to relying on manual data entry as the main method of processing documents in the insurance industry. Insurance professionals who have recognized these issues are beginning to seek out and implement insurance automation ideas. When it comes to automation in insurance, automating paperwork is undoubtedly one of the most effective ways to save time and cut costs.
The value of automation solutions that have the ability to drastically reduce the amount of effort spent on manual data entry is immense. Not only would insurance companies be able to process their documents in record time, but employees would be freed from the mountain of paperwork on their desks, and no one would have to deal with the soul-crushing and demotivating task of manual data entry ever again. Plus, by automating the data entry process, you can get access and visibility into your document processing operation by simply checking your smartphone. There are many potential benefits of technology in insurance industry applications.
Innovation in insurance
Rapidly developing technology trends are now poised to revolutionize nearly every aspect of the insurance industry. For example, consider self-driving cars. What used to be considered science fiction in the past has become a reality. Auto-insurance will soon be developing new ways of calculating risks with AI instead of humans behind the wheel of automobiles. This is only the beginning of the many ways innovation in insurance is bringing massive changes. Recently, the well-known consulting firm McKinsey released a study in which they described the five major technological trends that are likely to have a profound impact on the insurance industry.
1. Applied Artificial Intelligence
To date, few insurance providers have truly taken advantage of the many opportunities that AI capabilities can provide. As AI becomes increasingly more 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 insurtech products using AI will result in entirely new opportunities.
2. Distributed infrastructure
Many of the biggest names in the insurance space remained heavily weighed down by the debts and costs associated with the large technological installations that they continue to maintain. Cloud technologies are growing and being embraced at a rapid rate. As more insurance companies shift their core systems to the cloud, insurers will be able to act with speed and agility when designing and releasing new products. The Cloud will also open up a whole new world of computing power that will be required in order to analyze the millions of data points that insurance companies will want to extract insights from.
3. Future of connectivity
The Internet of Things is another technology that is likely to hugely impact the insurance business. Already, special devices in vehicles have been used to monitor risk and collect data which is, in turn, used to develop insurance products and understand risk in current policies. This specific, real-time collection of data will expand into other areas of insurance and enable insurers to get a better view of the risk calculations they need to factor into their policies and products, as well as give customers a better ability to gauge their needs.
4. Next-level process automation
Process automation has already been going on for some time in the insurance industry and is only going to continue growing. When it comes to innovation in insurance industry organizations, no technological trend has a greater ability to increase efficiency and cut down on paperwork. Robotics in insurance processes have already been implemented and continue to be developed. Life insurance software has been designed to help manage all of the forms and files associated with these 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 completely automate a variety of document-based processes.
5. Trust architecture
The fifth and final innovation that the study looked at was new trust architectures when it comes to cybersecurity. In the future, customers will hand over more of their sensitive data, enabling insurance companies to have a greater ability to predict and prevent events that could lead to claims. For example, having sensors implemented on certain machines in a factory could allow the customer and the insurance company to shut down a process and make repairs before a problem occurs that could damage the facilities. Securing this data will be a major priority. The blockchain will help with this. Zero-trust security mechanisms and similar approaches will also be a vital element.
Insurance automation software
Generally, the term “insurance automation software” refers to applications and solutions designed to streamline various back-office processes that can take too much time away from high-value tasks and create unnecessary costs. Automating these tasks enables you to upgrade your organization’s productivity massively. In Deloitte’s 2019 Insurance Industry Outlook, they showed that there was a 68% increase in productivity for organizations that implemented automation. There is a wide range of use cases and applications for insurance automation solutions, from sales to accounting. Virtually all operations in the insurance space deal with large amounts of paperwork. An automation solution that enabled various departments to process and manage this paperwork rapidly could result in widespread increases in productivity and efficiency across the organization.
One great example of a solution like this is an intelligent automation platform for document management. One of the key components of a document management platform like this is an optical character recognition (OCR) engine that can automatically scan characters in business documents and extract that data 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
As one specific example of how automation can be implemented at an insurance company, let’s consider automated claims processing. Whenever a customer of an insurance company experiences a loss that they believe is covered by their policy, they file a claim. Managing these claims is vital in order to ensure that only valid claims are paid out. There are several manual tasks that make up the claims processing workflow, which usually starts with an employee (often a claims manager) manually copying the data from the claim into different computer systems, where it is recorded and analyzed as part of the workflow.
Automating insurance claims processing can eliminate the need to manually extract data from claims. An effective IDP platform can utilize AI and machine learning to automatically recognize the data in the claim and process it accordingly. This is what is meant by the idea of cognitive automation insurance solutions.
Benefits of AI in insurance
Manual data entry is slow, expensive, and can be error-prone. Expanding your employee’s valuable talent on these kinds of tasks doesn’t make sense. That’s why there’s Rossum. Rossum allows for automated data capture through advanced AI technology with excellent accuracy. It is a solution designed to let you take advantage of the benefits of AI in insurance. It is a comprehensive IDP platform that 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 can easily manage a variety of channels to receive and process documents. It relies on our unique computer vision technology, which has the ability to read forms and documents in a way that ensures data capture at blindingly fast speeds, all with great precision and accuracy. Because Rossum doesn’t seek to replace humans, it has also been designed with an easy-to-use validation interface that allows your employees to quickly and easily verify data captures from documents. Rossum can be used as a powerful insurance automation platform to reduce your manual data entry by 90% and turn your documents-process from cost centers to profit producers.