How To Speed Up Insurance Claims Processing Using OCR-Enabled Data Entry

by | Published on Feb 24, 2022 | Data Entry Services

Digital text makes printed information easily accessible to more people. Document conversion services convert transform printed material into digital images using a scanner, but the information in the scanned document cannot be copied or edited. Optical character recognition (OCR) software, on the other hand, converts different types of documents such as scanned paper documents, PDF files or images captured by a digital camera into editable, searchable information. OCR is useful for many applications. One field where it is making a big difference is insurance. UCR-enabled data entry can speed up insurance claims processing.

Challenges of Insurance Claims Processing 

Insurance claims processing is complex and fraught with challenges.

  • Insurers have to deal with large volumes of paper documents with data relating to different types of claims – medical claims, homeowner claims, car insurance claims, and natural disaster claims.
  • The big data that needs to be processed constantly can include images, police reports, and audio and video content. It will comprise both unstructured and/or structured data for use in underwriting, rating, pricing, forms, marketing and claims handling. While structured data appears in tables and defined fields, unstructured data refers to social media postings, reports and recorded interviews, and satellite imagery pictures.
  • Companies also have to conduct damage assessments and identify the most efficient and cost-effective claims resolution process.
  • Payers have to determine appropriate settlements and have procedures in place to recognize potential fraud.

Insurers need to manage this data growth and put the data into action.  Information from paper and scanned documents have to be transferred into a database or other form of electronic record. Doing the job manually is a time-consuming and pain-staking process, which involves reviewing and re-keying data from faxed, scanned, or emailed forms. This is where OCR-enabled data entry comes in.

How OCR Saves Time on Insurance Document Processing

OCR optically identifies text-based and image-based content and converts it into digital format via data capture and automated data entry.  OCR automates claims processing by electronically converting scanned or photographic images of handwritten, typed, and printed text into computer-readable text/images.

Some database programs may be able to accept the OCR-converted editable documents directly from the OCR reader and speeds up insurance file processing. OCR can capture the entire content and present the files like the original document.

Reputable companies offering insurance claims data entry utilize advanced, powerful OCR software that saves time and effort when processing, generating and repurposing various documents.

Automation speeds up and eases work in areas such as:

  • Data entry related to insurance proposals and claims data
  • Data verification and validation
  • Digitization of insurance policies – a legal requirement
  • Management of insurance certificates
  • Certificate monitoring and endorsement collection
  • Payroll inspection
  • Invoice processing
  • Data analysis
  • Customer services

OCR assisted insurance claims processing improves accuracy, security and speed, with reduced manual intervention.

Key Benefits of OCR Data Entry for Insurance Claims Processing

  • Improves efficiency: By reducing the need for manual processes, OCR data capture reduces risk of all kinds of errors. Accurate output improves workflow and allows staff to focus on their core tasks.
  • Eliminates manual data entry: OCR-assisted forms scanning significantly cuts time needed for data entry and transcription. Users can search the forms, and identify and highlight non-compliance in certificates.
  • Provides editable and searchable documents: By providing scanned documents in formats such as Word, OCR allows content to be edited. This is crucial for insurance documents that need to be updated or changed from time to time. Moreover, OCR enabled data entry makes text in digitized documents completely searchable.
  • Promotes smooth workflow and saves time on the claims cycle: Lost forms, claims backlogs and incorrect or lost data are the main factors that slow down the manual insurance processing task. With OCR-enabled data entry, documents are digitized and can be stored securely in one place. This makes it easy to quickly search documents and insurance certificates, find insured persons by name, verify compliance status, and more. All this cuts time required to complete the claims cycle.
  • Automates certificate and document monitoring: Collection of both certificate and amendments an existing insurance contract or insurance endorsements can be automated. Insured can submit their certificates and documents online, which can also save time spent on discussions between those involved in the process.
  • Streamlines management of big data: By allowing insurers to better analyze and manage their complex volume of data, OCR enabled data entry can support underwriting, rating, marketing, and claim settlement practices. They can quickly resolve service concerns, streamline the application process, and improve the customer experience. Data can be used to tailor products to meet individual preferences. Text analytics can be used to identify and reduce fraud. By allowing accurate assessment of risk, digitized documents can improve solvency.

In addition to efficient data entry solutions for the insurance industry, outsourcing companies also provide support for OCR cleanup. Errors can occur when the software does not read the data correctly. Reliable data entry companies will ensure that the final documents delivered are completely readable and free of mistakes.

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