Susheel John, the VP of marketing and strategy for ibml highlights how AI and ML can assist in effective data capture and claims processing.
It’s no secret that we’re living in an increasingly digital world. But for more traditional industries, like insurance, the transition has proved more difficult than expected.
The implications of AI and cloud-based solutions are vast for a variety of businesses. With the potential to automate, the increased capacity for storage, and more, many companies are swiftly embracing these emerging technologies. Although the insurance industry has been resistant to change—often lagging in digital transformation—the advent of machine learning algorithms is beginning to transform the industry.
How AI Can Assist in Effective Data Capture and Claims Processing
Underwriters need as much information as possible to better gauge risk and tailor-make premium pricing. Whether it’s general liability, product liability, or property insurance, a lot of paperwork goes into collecting and analyzing this information to determine the best pricing.
The reality is insurance companies receive documents with customer information in both electronic and paper forms. There are volumes of historical information still in paper form within insurance companies; the hidden data can be crucial in making the right decisions in underwriting and pricing policies. Digital transformation cannot happen without all this information being digitized. Intelligent Scanners with Enterprise document scanning software is a necessity for companies to scale their digital transformation efforts.
Artificial intelligence and machine learning can help insurance underwriters process all this information in paper and electronic forms in a timely manner, with little to no errors. Intelligent document processing (IDP) software is a must-have tool for companies with a high volume of incoming data. Document capture technology uses the power of AI to simplify the information capture process, help understand and classify documents, extract information from the documents and assist with overall process efficiency and streamlining.
Relying on manual document processing for an industry as complex and personal as insurance is simply a bad business strategy. IDP is a simple way for organizations to step into the world of AI without becoming overwhelmed by it. Not only that, but it ensures that the information you need is gleaned quickly and accurately and frees up staff to focus on uniquely human tasks.
AI can even streamline processes on the back end to better connect applicants with the appropriate carriers. Through the power of AI, an insurance provider can scan a potential client’s documentation to quickly identify how much and what type of coverage they need and at what cost. As these systems become automated over time, the process of signing up for and receiving insurance will simplify significantly.
AI can also be integrated into claim settlements to ensure efficiency and consistency. For example, AI can review insurance claims and all subsequent documentation the insured submits, resulting in faster, better alignment and results for both parties. This, in a sense, cuts out the “middle man” in insurance and allows insured to get their claims processed and paid more quickly.
How Your Staff and Customers Can Benefit
When it comes to processing claims, there are a few telltale signs that indicate your company’s need for cloud capture technology. A major indicator is if your staff are showing signs of burnout and becoming bogged down by the sheer volume of paperwork they must process.
When digital solutions are readily available, companies can pivot away from manually keying in information, fixing errors or mistakes, scanning documents for information, and generally spending their days pushing paper. Your highly paid, knowledgeable workforce should use their uniquely human capacities to ideate, create, and utilize their logic and reasoning functions to help with core business processes—not reading over paperwork that machines could scan with high levels of accuracy. Eliminating these manual tasks also frees up employees to focus on your customers.
The Importance of Minimizing Errors
Any errors in claims paperwork can negatively impact a claimant and jeopardize the customer relationship. Narrowing the margin of error is imperative for business success in the insurance industry. Companies must do everything to ensure information is accurate and up to date. When piles of documents are waiting to be processed, it becomes problematic. This is where IDP comes in.
With cloud capture solutions, companies can expedite the piles of information that need to be processed, and rest assured that they will be handled with accuracy—satisfying the customer and employee alike. Reducing these information bottlenecks eliminates the most tedious, time-consuming portions of the process and, as a result, allows information to slow seamlessly throughout your company and back to the customer.
While the science of making and using intelligent machines has existed for decades, it wasn’t until recent years that it became more common in application.Now, the possibilities seem endless. As AI becomes increasingly commonplace, carriers must position themselves to use it effectively in their businesses. AI has the potential to reshape claims, distribution, underwriting, document processing, pricing, and more. With this understanding, leaders in insurance can better use this tech to create an effective, efficient system and distinguish themselves in the industry.
The evolution of insurance will shift everyone’s current thinking from prevention to prediction, transforming every aspect of this industry as it goes. As a result, brokers, consumers, and insurers alike will adjust to this type of technology and eventually use it for predictive decision-making to optimize results.
Visit AITechPark for cutting-edge Tech Trends around AI, ML, Cybersecurity, along with AITech News, and timely updates from industry professionals!
