Document AI solutions for insurance firms

Insurance companies face challenges while handling vast volumes of paper documents and form-based processes. Thus, due to this overspill of regular back-office operations, heavy dependence on human labor, and antiquated techniques and legacy systems, the insurance industry has turned its engine of functional processes towards the journey of an end-to-end connected digital transformation through document AI solutions.

Going beyond the traditional approach

The insurance carriers have shifted their approach by giving away the traditional business models and applying new paradigms like usage-based premiums, connected Insurance, and intelligent underwriting. Insurance customers are opting for on-demand and personalized experiences. To meet the ever-changing demands, insurance firms are implementing a wide array of technologies such as automation, blockchain, Artificial Intelligence (AI), Big Data and Analytics, Cloud, Optical character recognition (OCR), and the Internet of Things (IoT).

One such efficient solution is the XtractEdge Platform, which uses Machine Learning and Deep Learning based techniques to manage intricate multi-document data, making it actionable and ready to unlock the latent business value.

Key challenges while handling insurance documents

There are numerous challenges for insurance companies while managing multi-documents, some of which are mentioned below:

Unstructured Data

The majority of Intelligent Document Processing (IDP) companies exclusively concentrate on semi-structured and unstructured data solutions. However, the solutions these firms offer are not entirely capable of processing documents that do not match the templates of their repositories and hence, do not provide the exact result.

The significant issues in this approach are inconsistency and obscurity of natural language within the documents. The range of words used is too broad to be entirely captured as it evolves constantly. Even the natural language processing (NLP) tools cannot process terms they haven’t seen during training. Another concern is the language vagueness which means the things can be mentioned differently. Also, NLP does not work as it cannot handle expressions with similar meanings but different words. This is where the XtractEdge document AI platform can step in and resolve the issues.

Claim settlements and documents processing

Settling claims requires plenty of paper works that delays the process.

With XtractEdge, insurance firms can reduce the amount of time it takes to settle claims by AI document analysis. Document AI solutions can help review and extract content from claims submission documents, including forms and unstructured documents.

Time consumed drafting the policies

New policy request processing requires insurers to collate large amounts of data from multiple documents and sources in addition to complying with proper guidelines, codes, and modifiers. Each application is reviewed for accuracy and accepted or declined. In most instances, there is a need to request additional or missing information as it prolongs the process. Drafting policies can be a complex and laborious task that has a direct impact on the customer experience. Hence, the insurance carrier can automate the policy process.

Retrieving records

Another challenge that surfaces when handling the policyholder records. As these records are hoarded in a common repository, it consumes time to find a specific file, even with an advanced filing system. However, the Document AI solution ensures that the system will extract the most recent data with the key connected to various data sources.

Collecting signatures

The customer must be present physically with paper documents to sign the document. Collecting these signatures consumes a lot of time, so approving the policies and claims gets delayed. Additionally, documents can be misplaced, which means that the document must be printed once again, which is not a cost-effective step for the insurance company. However, AI document processing can maintain the e-signatures that can be affixed at any time. Also, an alert system can notify them at every step of the signature collection process.

Document AI solution – Driving digital transformation in the insurance industry

A Document AI solution like XtractEdge has been successfully implemented in multiple enterprise clients across the globe. For instance, XtractEdge Platform enabled an American health insurer reduce claims processing time by automatically extracting the required information from claim request forms and supporting documents with more than 90% accuracy.

Insurance firms are reorganizing their business attitude and creating a customer-centric value approach, consequently positioning themselves as guardians more than payers. They are looking to innovate and contextualize products to meet changing customer requirements. In this way, they are modifying the insurance distribution tactic to adjust these new offerings to client demands and the digital technology-led disruption in the market.