The insurance industry is notoriously paper-intensive. Carriers and brokers must deal with an abundance of paper in the form of contracts, policies, applications, claims, faxes, and more. Managing this information incurs heavy transactional costs, and a great likelihood of mistakes leading to errors, omissions exposure and disappointed customers. Insurance organizations must have quick and complete access to information in order to process documents in a timely manner consistent with corporate best practices, reduce costs, remain competitive, and maintain or exceed customer expectations.
Gartner analysts and consultants have affirmed that, “by providing a single workflow interface, agents and brokers can spend more time selling insurance and less time keying data into agency management systems.” * As processes are streamlined and manual tasks are minimized through workflow and document automation, revenue generating activities can become the focal point.
Paper-Driven
Policy data, claims information, billing records, correspondence, applications, and many other key documents continue to be primarily paper-based in most insurance brokerages. These paper documents drive the key work processes of any insurance firm, however their disparate storage makes retrieval difficult, the labour involved with their processing is costly, and the inability to ensure their security can result in non-compliance with regulatory requirements.
Costs
Insurance brokerages must control costs in order to stay competitive. Brokerages are continuously striving to gain greater efficiency in managing the vast amount of information that flows through their work processes. Automating daily tasks and reducing fixed-costs are focal points for many organizations.
Compliance
Insurance brokerages must minimize potential risk and loss associated with litigation and compliance. Recent regulations such as HIPAA, PIPEDA, the Gramm-Leach-Bliley Act, the Insurance Companies Act, and Manta Group’s Bill C-198 have imposed new requirements and controls over the access, storage, and retention of confidential documents and information.
Document Automation
As the name implies, document automation through workflow is a software solution aimed at assisting organizations in managing documents and ensuring that documented processes are adhered to and that service levels are maintained and efficiently monitored. Scanning, capturing, and imaging documents enables firms to store electronic images in lieu of paper copies which provides a more efficient means to retrieve, route, and store key documents. This is a critical improvement if a brokerage struggles to manage the paper burden of their daily workflow.
While potentially eliminating the need for banks of file drawers or shelves of off-site storage, document management systems also provide advanced search capabilities and a level of security that is not possible under a paper-based system. Searching and securing information is essential for any sized insurance brokerage. For organizations with existing databases and applications, document management systems and workflow help to better manage and integrate information across an entire enterprise.
Kimberly Harris-Ferrante, the vice president of research at Gartner stated, "It will be impossible to drive agent loyalty without adequate investment in technologies to support real-time information availability and transaction capability." * Insurers are increasingly finding that document automation technologies are essential components to remaining competitive in the industry. By utilizing digital document storage and database-driven searches and queries, smaller agencies can compete with big firms in terms of maximizing their access to information and minimizing the cost to use and store critical documents.
Eliminating paper documents by converting them to electronic files and implementing a document automation solution enables insurance brokers to:
• Free up time to engage in revenue generating activities
• Effectively retrieve, route, and store documents
• Enhance operational efficiencies and ensure accuracy
• Improve customer service
• Reduce operating and labour costs
• Achieve compliance with regulatory requirements
Microdea delivers highly configurable and cost-effective Synergize document management and workflow solutions to the insurance industry, including;
• Claims Processing
• Customer Service
• Underwriters
• Accounts Payable
• Keal sigXP™ Integration
• Human Resources Management
For more information on how Microdea can help your brokerage better manage information, increase efficiencies and reduce costs through the use of Synergize document management and automated workflow, contact us at 905.881.6071 ext 244 or marketing@microdea.com
* Gartner Says Real-Time Transaction Capability is Key in Driving Property and Casualty Insurer Loyalty