The insurance industry is traditionally a highly paper-intensive one due to heavy documentation requirements. Driven by the call for greater accountability and transparency by regulatory bodies, forms and paper-based processes have increased in the insurance sector. Insurance companies are now getting on the digitization bandwagon with the support of document scanning companies to improve workflow, process claims faster, and enhance the customer experience. In fact, like all other businesses, digital transformation has become a necessity in insurance to manage the rising volume of documentation and improve operational efficiency.
“Shifting to digital processes is vital at every step of the customer experience, from delivering a quote all the way to the claims process. Carriers should also become digitally agile by offering partnership services to meet consumer needs at just the right points along the customer journey” says Lev Barinskiy Forbes Councils Member (www.forbes.com).
Workflow Improvements with Insurance Document Digitization
- Integrated insurance document capture: With electronic document management, insurance companies can integrate insurance documents from various channels such as email, web form or any other type of source. Claim forms, correspondence and case files can be captured quickly and processed on a single platform.
- Faster claims processing: Digitization has improved operational efficiency and productivity in insurance companies. The key benefits that flow from electronic documents include faster claims processing, reduction of manual processes, and saving of physical space and paper. Electronic documents allow for information to flow smoothly, overcoming the delays associated with paper-based workflows.
- Streamlines insurance paperwork processes: Digitization has transformed the traditionally paper-intensive insurance industry with large amounts of information from different channels and sources. Paper-based information comes with higher risks of being lost, misplaced, lost, or misclassified. Electronic document-based workflows allow for information to flow freely which improves efficiency and productivity.
- Facilitates remote work: Digitization provides centralized access to documents. With the Covid-19 outbreak, insurance companies switched to remote work. Digitized documents can be shared quickly with insurance professionals, promoting and speeding up efficient claims settlement. An IMB survey found that the COVID-19 pandemic accelerated digital transformation at 95% of the insurance organizations, and 90% said they have been able to complete initiatives that were challenging. Insurers reported the top benefits of this transformation as improved competitiveness and reduced costs.
- Improves regulatory compliance: Insurance companies operate in a highly regulated environment and are required by the authorities to maintain high standards in their governance and operations. This includes operating according to the standards required, providing clear and accurate information quality services to clients, issuing complete, well written, consistent documents that meet the necessary standards, timely payment of claims, and so on. Electronic document management promoted compliance with HIPAA, financial reporting, risk management, operational and technology compliance and many other regulations governing the insurance industry.
- Increases document security: Permission-based electronic document management that is fully encrypted facilitates secure claims processing. Cloud-based insurance document management can improve employee productivity, enable developing and testing new products and services faster, and reduce operating costs. Cloud computing allows insurers to speed up business transformation and manage online resources to deliver services securely.
- Greater customer satisfaction: Customers’ expectations have been transformed by digital technology. Today, most consumers prefer e-billing, digital payments and fast online processing of claims. They want service anywhere at any time and to be able to track processes at every stage. Digitization simplifies how consumers access and submit documents online and interact with customer bots. Environmental factors also play a role in influencing customer satisfaction.
- Cost savings: Paper is costly to store and manage. Paper forms take more time to complete and process than electronic documents. According to research by Mckinsey, automation can reduce the cost of a claims journey by as much as 30 percent. With digitization, insurers can leverage data analytics to gain better customer insights and better price products based on customer behavior. This has cut customer acquisition costs and improved customer retention and referrals. Insurers can underwrite more accurately by understanding what works and what doesn’t. Digitizing also helps them to better identify fraudulent claims.
Digitization, Automation and Artificial Intelligence
Insurance companies can shift to electronic document management and digital processes with the help of a document scanning service provider. This will save time and provide instant access to digital records to support every step of the customer experience, from providing a quote to the claims process. Automation and artificial intelligence are making their way into the insurance industry, streamlining the insurance process and connecting potential customers with carriers more efficiently and with fewer errors. Though paperless processes come with cyber security risks and could exclude customers who are not ready for digital processes, convenience and efficiency are everything when it comes to insurance. Digitization improves workflows by enabling insurers to gain meaningful insights for faster and accurate business decision making and for improving customer satisfaction.