08 Feb How OCR Digitizes The Insurance Industry??…
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.
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 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: OCR improves margins and profitability:
OCR enables your insurance business to reduce costs by 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 these kind of errors and improves profitability by way of cost reduction.
Benefit #4: 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 market place, customer behavior 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.
OCR is a revolutionary technology in enhancing data capture and management process and improving automated workflows in the insurance industry.
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