08 Feb How OCR Digitizes the Insurance Industry? | Digital Insurance
Optical character recognition (OCR): 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 digitization of printed texts to enable data extraction, electronic editing, compact storage and online display and is used in machine processes such as machine translation, text to speech and text mining.
There are quite a few barriers in 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 claims data entry, payroll audit, insurance certificate generation, and invoice processing where a lot of manual workflows are still prevalent. Nuvento Robotic Process Automation (RPA) manages operational challenges and boosts digital transformation by streamlining all processes; this leverages analytics/cognitive/ML/NLP on a large scale.
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.
Few benefits of OCR in Insurance Industry
Benefit#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.
Benefit #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.
Benefit #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.
Benefit #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.
Benefit #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.
Benefit #6: Greater Accuracy with Automation
OCR enabled Insurance claims processing is an automated program which 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 is a revolutionary technology in enhancing data capture and management process and improving automated workflows in the insurance industry. OCR has considerable impact in digitizing the insurance industry with its unique capability of digitizing documents quickly and easily.
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