The insurance industry is changing rapidly. In order to keep up with the demands of modern consumers, companies in this industry must innovate and find new ways to automate their document processing. By using document automation software, businesses can save time and money while still providing excellent customer service.
Document automation has become a necessity for businesses in the insurance industry. In order to keep up with the competition, companies must find ways to automate their document processing. Document automation software can help businesses save time and money while still providing excellent customer service.
Universal Document Automation
Insurance companies can benefit from universal document automation by reducing the time and resources needed to process documents.
What is Universal Document Automation?
Universal document automation is a document processing solution that can be used by businesses of all sizes. It is a scalable, cloud-based solution that helps businesses automate their document processing.
Universal document automation is a technology that is part of intelligent document processing, or IDP. IDP solutions have been around for years, but newer IDP software now comes with more modern technologies, as it has been augmented by AI and machine learning. These new processes have led to the emergence of universal document automation.
With universal document automation, a company can automatically process new documents, identify and gather crucial data from the documents, and then gather the data for easier use. This capability can be useful for many industries, and that’s especially true for the insurance industry.
Universal document automation can be of crucial importance for insurance companies, as it can be used for agent support, autonomous underwriting, contract analysis, claims estimation, and fraud detection.
Current Issues for Insurance Companies
Today, insurance companies are up against some pretty big challenges that could create roadblocks down the line. The biggest concerns include:
The insurance industry has changed a lot in recent years. In the past, only a few large companies held almost all of the market share. Now, while the biggest insurers still make up a larger portion of the industry, they don’t have as much control as they used to.
In fact, not a single one of these national insurance companies has even 10% of the market share. In 2021, State Farm wrote the highest total value of premiums for the year and that accounted for merely 8.9% of the market leaving 91.1% to be divided among many other insurance companies, which evidently shows just how divided this particular market is.
Changing Customer Expectations
Today, customers have smartphones and internet access. This has led to many more people being used to instant gratification. This is just the truth of it, and this feeling has been reinforced by various advances such as quick delivery of fast food and overnight shipping for products.
This presents a real challenge for insurance companies because there’s no way that insurance claims can be processed instantly. But universal document automation can at least shorten the waiting time, for claims processing, and it can also disperse funds quickly when appropriate.
High Document Volume
When insurance companies process claims, they have to gather and review data from numerous documents. Many of these claim documents need a significant amount of time to review, as they might contain unstructured information and images as well. This is part of the reason why the claims resolution process can take a lot of time and effort.
Again, universal document automation can help streamline claims processing so that insurance companies can process the claims more quickly.
How Universal Document Automation Can Be the Answer
The advantages that insurance companies can enjoy by using universal document automation are as follows:
Fewer Errors in Document Processing
A single mistake during document processing can cause a domino effect of errors, which then adversely affects both the insurance company and its clients. If one detail is wrong, it could result in an incorrect claim closure or resolution.
In general, these types of results lead to lower customer satisfaction and more work for the staff. If a claim appeal needs to be processed, that’s extra work on top of having to fix all the mistakes by backtracking through every document.
By automating document processing, mistakes can be reduced and the quality of claims processors will increase.
According to recent studies, companies that have adopted universal document automation technologies have seen their claims processing speed up by 89%. In fact, these insurance companies are now able to process seven times more claims per day than they could before.
This will lead to happier customers since they won’t have to wait weeks to check on the status of their claims. Meanwhile, insurance companies will benefit from a more positive reputation.
Reduced Use of Manual Processes
Inefficiencycharacterizes manual document reviews and they even end up costing insurance companies more money. Furthermore, it prevents their employees from partaking in tasks that are better suited for humans instead of machines; like interacting directly with current or potential clients. To top it all off, the process is quite tedious- nothing good for company morale.
While insurance companies have long relied on manual processing, universal document automation can drastically reduce this reliance. With the ability to recognize any document type, repetitive and time-consuming tasks can be automated, reducing workloads and boosting employee morale in the process.
Improved Customer Service
When an insurance company has universal document automation, it can serve its clients more effectively and efficiently. This is because any type of document can be quickly turned into practical, actionable data. Once that data is ready for access, the IDP (insurance claims processor) can send out the data so that it reduces the time needed to close out claims. The data can also be used for more efficient bill processing, or for policy creation.
Statistics show that a majority of customers (68%) are willing to pay more for services, as long as the service provider also offers excellent customer service. And that’s what you get with universal document automation and the resulting quick response times. The improvements can and will lead to more clients renewing their policies, and they’re less likely to switch to another insurance company simply because of cheaper rates.
The insurance industry as a whole must become more innovative to meet the needs and expectations of its customers. document automation is one way that companies can improve their efficiency, quality, and customer service. As customers become more informed and have higher expectations, document automation will only become more necessary in order to keep up.
We hope that this article has helped to show the importance of document automation in the insurance industry! If you have any questions or would like to learn more, please contact us. We would be happy to discuss document automation with you and how it can benefit your company.