08 Feb How OCR Digitizes the Insurance Industry? | Digital Insurance
Optical character recognition (OCR) is the mechanical or electronic conversion of scanned or photographic images of handwritten, typewritten, or printed text into machine-encoded or computer-readable text/images. The main application of this technology is in industries where a lot of data entry happens, and numerous printed records are to be decoded. This enables the digitization of printed texts to enable data extraction, electronic editing, compact storage, and online display. OCR is used in machine processes such as machine translation, text to speech, and text mining.
There are quite a few barriers in the insurance industry such as duplicate and manual processes, knowledge/data/organizational silos, complex business models, etc. Achieving digital operation excellence and digital customer experience is the main challenge faced in data-intensive industries like Insurance. Few areas with automation potential are insurance proposal and claim data entry, payroll audit, insurance certificate generation, and invoice processing where a lot of manual workflows are still prevalent.
Why insurance policies are needed in digital format
Insurance policies in digital format is a legal requirement mandated by Governments across the world. Maintaining data in digital format eliminates the hassles of process delays and helps in deeper analysis for forecast purposes. This digital system helps a lot in comparing with competitors’ products and services and making better solutions which would attract more customers.
Digitization of Insurance Policies have the following advantages:
- Limited manual work/paperwork: Many insurance processes can be integrated by means of digitization. So, data verification gets easier and less time consuming with this. This is especially true when an existing customer tries to renew the policy or buy a different policy from the same brand. Customer gets the required solution within a matter of few seconds since entire data is stored digitally and easily verifiable. There is no need for filling too many forms or documents or giving the same information which was given earlier.
- Transparency and Convenience: Transparency while making a claim is greatly increased when details and data are made available online. Data dashboards give a single unified view of the entire details of a customer. Customer can easily pay premium, give any type of service request or lodge complaints through the online portal.
- Safety and Security: Insurance policy data stored online is digitally safe and helps in quick policy reference. There is lesser risk of losing the policies which are stored online. This system offers security from fraud instances as well.
How OCR helps in automating document processing
What is the main struggle insurance industries encounter? It is the heaps of documents to process!
Insurance industries have a massive number of documents to execute daily. In doing this manually, there is too much labor time, claim processing time, hourly cost, and other drawbacks involved. These challenges can be solved by incorporating intelligent document processing software. OCR is one such tool that can optically recognize text-based and image-based content and digitize it through data capture and automated data entry. Insurers can execute data analysis, customer services, and other tasks quickly and hassle-free using this automated data extraction software.
The biggest advantage of automated data capture over manual systems is its document processing capabilities. But without an efficient tool to handle the insurance tasks, the whole effort becomes unintelligent.
Which is the automated data extraction software available in the market that insurance industries can use for digitization?
NuOCR is the simplest, efficient, and top document processing tool available in the market that can:
- Reduce the working hours and cost
- Increase the claim processing in sites
- Cut time required for claim cycle
- Reduce manual data entry
For instance, if it takes 100 employees to process 10000 documents over 1 month, NuOCR can do the same in a matter of few days. That is a lot of effort, money, and time saved!
Few benefits of OCR in Insurance Industry
1: OCR helps in strategic customer acquisition:
Matching your insurance products and services to customer needs is a key improvement area in better customer acquisition. Automated analytic tools with text recognition features analyze the insurance policy document which is uploaded online and compares it to your own products/competitors’ products to see if you can offer a better/cheaper plan. Since this involves huge quantity of data, manual processes may not be capable of handling the data capture process at an efficient rate. OCR automatically transforms any no. of documents to accurate/structured data in a format suitable for further analysis.
2: OCR enhances Customer Service:
OCR is a technological breakthrough in replacing manual scanning of paper documents. Traditionally paper documents were scanned and converted to flattened digital image files then manual indexing on each document. This process had human intervention involved which turned out to be error prone, inconsistent and expensive. This manual work process couldn’t handle the huge volume of content which in turn resulted in delays in workflow. Uncontrollable work delays can tarnish customer experience since customers require immediate resolution for each of their issues. Delayed claim settling creates additional customer stress thereby deteriorates retention rates and brand image. OCR deployment enables customers to turn out to be the business’s workforce, customers can process their own documents in an easy format ready for use.
3: Quicker Resolutions and Reduced Process Lags:
OCR can provide the benefits of quicker and timely operations and systems when it comes to Insurance Claims processing. Compared to the times when clients had to wait for a longer timeframe for completing the entire claims process, OCR now makes it simpler and easier. Claims processing gets quicker mainly because of the Quick interface programs of OCR. You can encode the details which you need in a matter of seconds.
4: OCR improves margins and profitability:
OCR enables your insurance business to reduce costs by digitizing documents and thereby minimizing manual data entry mistakes which are common in traditional data capture methods. Switch over from manual indexing to automated OCR process would result in reducing manpower and associated costs and increases accuracy by avoiding errors and omissions. A minute error result in bulk of costs in data capture process, mainly in the form of time wasted searching for documents which are incorrectly indexed through manual process. OCR considerably reduces this kind of errors and improves profitability by way of cost reduction.
5: OCR provides High precision predictions.
OCR converts bulk data into easier formats that are usable by AI or ML software. Historical data are analysed to make predictions about trends in the marketplace, customer behaviour and emerging risks. Huge amounts of content can be fed into OCR software which generates cause and effect predictions and identifies massive datasets. Automated OCR process are usually error-free; hence business can extract maximum value from their data to make meaningful predictions and harness AI power.
6: Greater Accuracy with Automation
OCR enabled Insurance claims processing is an automated program that ensures greater accuracy without much manual intervention. This reduces the chances of all sorts of errors and improves the efficiency of the workflow. OCR ensures data verification and validation, and this helps in accurate output.
OCR claim processing (Claim processing using OCR/OCR-based claim processing) is revolutionary in enhancing data capture and management processes for improving automated workflows in the insurance industry. Insurance document digitization can be achieved quickly and easily with Optical Character Recognition (OCR) software which can recognize, gather, transform and transfer data on paper or online forms to the database correctly.
How NuOCR can help insurers digitize their data
NuOCR is an automated data capture software developed by Nuvento helping insurers to replace manual data capture processes with automation. Several insurers like you rely on paper-based processes and manual data capture. These processes incur tremendous effort, cost millions yet affect the quality of data.
NuOCR’s data capture automation capabilities allow insurers to digitize data on their paper and electronic documents, improves data quality with reduced data capture errors, and helps insurers save time and money in the process.
With NuOCR, you can collect your data from input sources such as your email or even integrate your data input software. NuOCR will extract the data you need from the documents coming to you via these sources and then feed it to data processing systems or let you download it. This way, it helps insurers digitize their data.
There’s more to NuOCR
NuOCR’s powerful data capture solution can be used across industries that depend heavily on paper. NuOCR can automate the entire data process lifecycle and reduce dependency on paperwork and manual processing. NuOCR can simplify data management for Industries like healthcare, pharmaceuticals, banks, government organizations, and much more.