At a glance, automation may seem a little out of place in service-oriented industries such as the insurance business. This is true to an extent — while robots shall not replace the agent-client relationship, insurance companies can benefit in many ways by streamlining and automating the non-emotional parts of their processes, namely pricing, claims, risk assessment, accounting, underwriting, and more using AI-enabled machine learning models.
In Asia, insurance companies are still in the early stage of automation and AI adoption, due to the traditional, layered organizational structures — a 2023 research from McKinsey & Company shows. However, another research from McKinsey shows that streamlining the underwriting process alone can help companies see a 14% median increase in sales volume within two years.
The underwriting process evaluates insurance applicants — allowing the company to calculate and classify the level of risks, so it can filter the applicants and determine the appropriate amount of insurance premiums that the applicants will need to pay. This process can be done in two different approaches: traditional and accelerated underwriting.
Traditional underwriting can take up to 60 days. On the other hand, accelerated underwriting requires less time thanks to cutting-edge, AI-enabled tools such as OCR and financial API. Thus, implementing accelerated underwriting can serve more benefits for the company.
What is the role of OCR in insurance companies?
Optical character recognition (OCR) scans and translates documents and images such as invoices and e-invoices, medical bills, e-statements, and more into computer-ready parsed data. Therefore, the data entry process can be done a lot faster, automating manual input that usually takes hours.
In insurance companies, OCR technology is typically used during the underwriting and claim processes.
Benefits of OCR in insurance companies
The cutting-edge OCR technology is known for its versatility and can be leveraged to automate and optimize work in various industries, including insurance. Below are how you can use OCR to benefit your insurance business.
Enhanced efficiency and scalability
By extracting and digitizing documents, OCR significantly speeds up data entry processes. This ensures that crucial information, such as customer details, policy numbers, and claim data, can be quickly accessed and processed.
The reduced manual work also leads to lower operational costs, so you can allocate more resources for growth and scaling up your insurance company.
Improved accuracy
Human errors are inherent in manual data entry processes. OCR eliminates this risk, thus reducing costly mistakes in policy administration and claims management.
Faster claim process
With automated data extraction from claim forms and supporting documents, OCR accelerates the processing time and allows insurance companies to settle claims faster.
Better customer satisfaction
Speedy and highly-accurate processes, especially in terms of claims, eventually lead to higher customer satisfaction, which is a great driver for your business growth and higher revenue.
Automate your insurance underwriting and claims processing with OCR+ by Fintelite
OCR+ by Fintelite ensures you get the most out of the technology. Our advanced machine-learning model is meticulously crafted using a vast dataset comprising over 1 million merchant records, allowing you to process more than ten thousand documents in just one day, eliminating the risk of error-prone underwriting and detecting fake claim documents.
To further enhance your optimization, we also enhance our document automation with AI-powered fraud detection. Our model can automate manual checking work and shorten your underwriting process by 50%.
Talk to our AI Experts to enjoy a free OCR+ trial and schedule an API demo. Get a taste of our two cutting-edge technologies now. Streamline your underwriting and claim process, embrace the transformation, and let your insurance business thrive.
