Insuranceciooutlook

AI Makes Claims Processing More Effective

Insurance CIO Outlook | Tuesday, May 04, 2021

Today, insurers depend on teams of data keyers or obsolete technologies to read and transcribe sensitive details from a website and convert it into a format that can be used by different systems.

Fremont, CA: Competitive market demands and consumer preferences are forcing the insurance industry to evolve or risk being left behind. Despite this, many insurers continue to use antiquated, manual systems to manage claims and process data that flows naturally through their organizations. This causes delays, errors, customer annoyance, and other issues that can stifle development.

Part of the explanation for sticking with conventional approaches is that modernization necessitates not only technological investments but also a shift in mindset. Furthermore, several businesses are struggling with a legacy technology stack that has been cobbled together over many decades.

However, the tide is turning, and leading insurance companies are following in the footsteps of other tech-enabled sectors, using automation as the blueprint for unlocking new efficiencies. Through automating these manual processes, they are able to accelerate claims processing, maximize resource availability, and provide the quality of service and innovation that the market requires.

Data processing is one area that has badly needed automation. Ironically, data entry — the first phase in the first mile of claims processing — was one of the last to be automated and remained one of the most vulnerable to disruption.

Today, insurers depend on teams of data keyers or obsolete technologies to read and transcribe sensitive details from a website and convert it into a format that can be used by different systems. This is especially difficult in areas such as claims, which necessitate several pages (often handwritten) and an increasing amount of data to determine settlements, issue payments, and serve customers.

Despite the talk of going digital, paper isn't going away anytime soon, and even though documents are produced electronically, they are often incompatible with internal databases and must be manually processed and re-entered. As a result, companies continue to spend billions of dollars and hundreds of thousands of hours on manual data entry in order to identify and extract information from records and convert it into a format suitable for downstream collection, servicing, and front-line customer interactions.

See Also: Top Claims Processing and Management Consulting/Service Companies

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