Intelligent Document Processing (IDP) is a rapidly growing technology that has been adopted by many businesses and industries, including insurance. But what exactly is IDP? Simply put, it is a form of artificial intelligence that utilizes computer vision, optical character recognition, natural language processing, and machine learning to accurately analyze data from documents like insurance policies, contracts, and claims forms. This technology can help streamline the process of reviewing documents, saving time and money for insurance companies.
Is Intelligent Document Processing (IDP) used in insurance?
Yes, of course! Intelligent Document Processing (IDP) is used in the insurance industry to streamline operations and improve accuracy. IDP enables insurers to quickly process large volumes of documents, such as claims forms and policy applications, with accuracy and speed. Additionally, it can be used to automate more complicated tasks, such as detecting fraud and verifying customer data. With IDP, insurance companies are able to reduce costs while providing a better customer experience.
Top challenges insurance leaders are addressing with Intelligent Document Processing (IDP)
There are several challenges that insurance leaders are addressing with Intelligent Document Processing (IDP) technology:
- Manual data entry: IDP can help insurance companies reduce the time and effort required to manually enter data from paper documents or electronic documents with unstructured data.
- Data accuracy: IDP can help improve the accuracy of data entry by using artificial intelligence (AI) to extract and classify data from documents with a high degree of accuracy.
- Process efficiency: IDP can help automate and streamline business processes, such as claims handling and policy underwriting, by extracting relevant data from documents and routing it to the appropriate systems or individuals for further processing.
- Customer experience: IDP can help insurance companies provide a better customer experience by reducing the time it takes to process claims and other requests and reducing the need for customers to provide multiple copies of the same documents.
- Compliance: IDP can help insurance companies ensure compliance with industry regulations by accurately and consistently extracting data from documents and storing it securely and automatically.
Did you know the top insurer writes over $100 billion in premiums annually?
That’s right; the leading insurance company is able to write an impressive amount of premiums each year. In 2020 alone, MetLife, the largest health and life insurance company in the United States, wrote over $103.3 billion in premiums. Without the aid of modern technology, writing insurance premiums would be a tedious and expensive process. Fortunately, IDP technologies like AYR’s SingularityAI platform provide insurers with an efficient approach to help reduce manual labor costs — allowing them to write policies more quickly and at a lower cost!
How insurance companies can get to “touchless claims” – reducing the need for human intervention in claims processing
Touchless claims are a way of processing insurance claims without needing any physical documents or manual labor. This is possible thanks to Intelligent Document Processing (IDP), which automates the process of analyzing and verifying customer data and detecting fraud. This, in turn, reduces costs and improves efficiency in the claims process, resulting in improved customer service and overall performance for insurers. Additionally, touchless claims may also help reduce paperwork errors and minimize delays associated with manual entry mistakes.
How AYR enables touchless claims for insurance
Traditional claims processing involves receiving and manually processing several forms of documentation from multiple parties, evaluating the claim, and determining the benefit amount.
While other vendors provide touchless claims solutions, they struggle to process poor-quality images, such as those with noisy backgrounds, reflections, engraved letters/numbers on cards, pictures of scanned documents, etc.
What we did:
- Trained model to process images of documents, VIN, and accident damage submitted through various input channels and of varying quality (noisy backgrounds, reflection, etc.)
- Classify 56 different document types with > 98% accuracy
- Intelligently extract key data from each document, with 99.5% word level accuracy
- Prevent fraud by cross-referencing across multiple documents
- Automate claim approval for low-severity or high-confidence claims
- Enable straight-through processing of 400k + images daily
- Reduce processing time from hours to minutes
- Submission of claims documents images at FNOL.
- Instant payment via ACH
Benefits of Intelligent Document Processing for Insurance
The primary benefit of using IDP in the insurance industry is cost savings. By using intelligent document processing technology to review large volumes of documents in an automated fashion quickly, companies can save money on manual document analysis and significantly reduce labor costs. Furthermore, IDP can process these documents more quickly than humans could ever hope to do manually, making the entire process faster and more efficient.
Another benefit of using intelligent document processing is improved efficiency. By automating mundane administrative tasks with IDP, you can free up resources for more high-value activities such as customer service or marketing campaigns. Additionally, since IDP works much faster than manual methods, you’ll be able to process larger volumes of documents in less time with fewer errors. This means you’ll be able to get more done in less time with fewer resources – all without sacrificing quality or accuracy.
Automating Administrative Tasks
Administrative tasks such as claims processing, policy writing, and customer onboarding are incredibly time-consuming in the insurance world. With IDP, these tasks can be automated to save time and money while still providing accurate results. By automating these processes with intelligent document processing, you can quickly identify key data points from documents such as contracts or claim forms and extract them into a structured format for further analysis. This means your staff will have more time to focus on other tasks while ensuring their work accuracy.
Another major benefit of using IDP in the insurance industry is improved accuracy. By utilizing powerful algorithms designed to identify key pieces of information such as policy numbers or billing details, IDP can accurately capture important data points that might have otherwise been missed by human reviewers. This helps insurers better understand their customers’ needs and ensure they provide accurate coverage options.
Reducing Fraudulent Claims
Intelligent document processing can help reduce fraudulent claims by identifying suspicious activity or inconsistencies in documents before they are processed. For example, if a claim form contains incorrect information or discrepancies between two pieces of documentation, IDP will be able to detect this immediately and alert your staff so they can investigate further. This helps reduce fraudulent claims while also protecting your customers from potential financial losses due to identity theft or other scams.
Finally, intelligent document processing technology also offers enhanced security benefits for insurers who use it. By automating document review processes and eliminating manual entry errors, companies can protect themselves from costly mistakes or fraudulent activities that could lead to legal liabilities or financial losses. No more lost laptops that are full of client PII. Intelligent document processing provides a heightened level of security against cyberattacks because all sensitive data is stored securely on remote servers rather than on-site computers or hard drives, which are vulnerable to hacking attempts.
Why would any insurance leader not want to work with IDP solutions?
As the digital world continues to evolve, insurance leaders need to keep up with the latest trends in technology. One of the most important aspects of this is understanding how Insurtech and digital solutions can help them better serve their clients’ needs. But why would any insurance leader not want to work with IDP solutions? Despite the many benefits of using Intelligent Document Processing (IDP) solutions, there are some reasons why an insurance leader might choose not to work with them. For example, IDP solutions require a significant upfront cost and regular maintenance, making it difficult for smaller companies with limited resources.
One of the biggest concerns for any insurance executive when it comes to working with IDP solutions is the potential security risks associated with using such platforms. While data breaches are always a risk, they become even more concerning when they involve personal information or sensitive data related to an individual’s health or finances. This is why it’s important for insurance leaders to thoroughly vet any company they choose to work with and make sure that their security protocols are up-to-date and as secure as possible.
Another potential drawback for insurance executives looking into working with IDP solutions is the cost involved. While these platforms can offer tremendous benefits in terms of streamlining processes and improving overall customer experience, they also come with a hefty price tag. Many companies will require insurance executives to pay a subscription fee in order to use their services, which can add up over time if multiple plans are being used at once. Additionally, additional costs may be associated with customizing existing software or developing new features tailored to an organization’s needs.
While these challenges exist, most insurance leaders say the benefits far exceed the costs and risks. That is why so many are now streamlining customer onboarding, claims, underwriting, and other manual, labor-intensive document processes with IDP to improve their future of work, making employees happier, and raising their customer experiences.
Next-generation IDP solutions are transforming insurance
It’s no secret that Intelligent Document Processing (IDP) technology has revolutionized the way insurers work by providing them with cost savings, improved accuracy, and enhanced security benefits that would be impossible to achieve without it. Every good leader understands there are pros and cons to any investment. They should evaluate vendors in the IDP industry who meet all of their needs – compliance, risk, cost, and support availability. With its ability to automate tedious tasks such as document review while maintaining accuracy and security standards, IDP is becoming increasingly popular among insurers as they look for new ways to improve their workflow and provide better customer service.
As this technology continues to evolve over time, its potential applications will only grow further in the years ahead—offering exciting opportunities for those looking for new efficiencies within the insurance space! The time to automate and improve is now. What are you waiting for? Are You Ready?