Automation has been playing a disruptive role in every industry. Among these cutting-edge technologies, Intelligent Document Processing (IDP) has emerged as a trend for the insurance industry, which is one of the largest adopters with a presence of approximately 13% of the IDP market. Subsequently, thoroughly understanding IDP becomes crucial for companies to explore its potential to improve their operational efficiencies.
IDP: The Solution to Streamlining P&C Industry Operations
In the P&C (Property and Casualty) industry, the onboarding process and claims processing times can vary depending on various factors, such as the case’s complexity, the number of documents required, and the resources available to process them. On average, it can take several days or even weeks to fully onboard an application and process a claim. Underwriting, the process of evaluating and assessing the risk of insuring a potential policyholder, is considered one of the most complex tasks in the P&C industry.
Around 80% of the documents used in the P&C industry are unstructured. Using unstructured documents can make the onboarding and claims processing process more challenging as it requires manual data entry, leading to errors and delays.
However, with the advent of Intelligent Document Processing (IDP) technology, it is now possible to automatically extract data from these unstructured documents, reducing the need for manual data entry. This can have a significant impact on reducing onboarding and claims processing times, as well as streamlining the underwriting process. IDP technology also improves data collection and analysis accuracy, leading to better decision-making and a more efficient overall process.
Introducing such tech capabilities essentially solves multiple issues faced by the P&C industry. Usually, customer engagement and satisfaction are not always as per the expectations in the P&C industry. Further, the increase in competition due to multiple players offering their solutions can make customers switch to different service providers if your solutions fail to address their issues. It causes a rise in operating cost, which impacts revenue realization. An automated IDP solution solves most of the pertaining issues and provides more flexibility to the P&C industry.
Advantages of Intelligent Document Processing in the P&C industry
Using an IDP solution in the P&C industry has many benefits. Certain forms like ACORD forms can have as many as 93 unique fields on a single page. Subsequently, manual data extraction can become a daunting task for insurers to offer fast resolution or draw any actionable outcome-based insights. An IDP solution helps in mitigating such issues efficiently and deliver impact with accuracy.
Some of the benefits of using IDP in the P&C industry are:
1. Increased efficiency
Manual document processing can become very expensive for companies dealing with multiple documents. Further, these documents vary in format and source and might get damaged if they are not processed within a few days of receiving them. Utilizing intelligent document processing can reduce errors and expenses of manual processing significantly. It also improves turnover time in the processing and verification of documents to a matter of days instead of months.
2. Improved security
An IDP solution improves data extraction accuracy, making the consolidated information ideal for managing compliance and regulatory norms. It further helps businesses preserve the security of sensitive information, including personally identifiable information (PII) or financial records. IDP eliminates human intervention, which violates data sensitivity resulting in minimizing the risk of breaches or mishandling of data. Since IDP is an automated solution, it streamlines the entire operation, allowing consumption of the information in actionable formats, therefore improving its overall security.
3. Enhanced information availability
The information available for companies to deal with the P&C industry are across various sources and formats, including PDFs, emails, text-based, and even physical documents. IDP allows businesses to cut through the noise across these formats and extract data in a structured or templateless format so there is no ambiguity with the information for further processing. Subsequently, it allows businesses to have a more comprehensive look into customer information and offer a better resolution according to the requirements.
4. Scalability of processes
The tech capabilities behind a powerful IDP solution make it a powerful enabler in offering end-to-end process automation. It helps break the silos for gathering information by automating the complexities of document processing and achieving consistent results in optimizing the process. Further, since these technologies can identify patterns and learn the behavior of workflows or customers, gathering information from unstructured documents, even on a large scale, becomes more convenient with each iteration.
Integrating an AI-based IDP solution can significantly impact you if you want to optimize your processes in the P&C industry.However, leveraging a solution that provides a fast start to document processing after integration, ease of use, adaptability according to the document format, straight-through processing capabilities, and end-to-end automation can achieve the required efficiency. Want to learn more? Check out DocVu.AI’s IDP solution to discover its full capabilities.