Staying competitive with document automation
Innovating the document process can allow insurers to price and underwrite more accurately, increase efficiency and serve customers better.
As the insurtech movement advances, traditional insurance companies are under pressure to compete with digital disruptors — startups that enter the field with digital-first solutions. Innovative insurance companies large and small are responding to the insurtech revolution’s new model with their own investments in online processes, from insurance policy platforms accessible via smartphone to the use of AI, blockchain and predictive pricing analytics.
Fortunately, traditional insurance providers can make digital strides without replacing their entire business models and, in some respects, have important advantages startups don’t. Established providers have the benefit of history, long-standing client relationships, mature processes and extensive data, which can serve them well in the transition to a digital business model. Automation can effectively digitize core processes and workflows that are currently done manually.
Document automation in insurance
Insurance providers are finding that document automation is an effective way to transform business workflows, and the opportunities are endless. From the initial application to underwriting, reinsurance and claims processing, nearly every document process can be automated, enabling quick delivery of large volumes of error-free policies and contracts in compliance with existing laws and company standards.
What is document automation?
Many information-based industries produce standard documents and forms with only minor differences from one customer or order to the next. Document automation eliminates the laborious process of copying a document and manually editing key information to create a new document. The automated process of creating documents — bills, contracts, purchase orders, invoices, policies, claim forms and other high-volume repeatable documents — uses simple coding to pull information about customers, order details and other stored data into templates to generate individualized documents. The result is a highly accurate document tailored to a given customer or order in a fraction of the time.
In insurance, document automation software allows providers to generate lengthy and complex policy documents — everything from standard endorsements to claims litigation documentation — simply. Automation dramatically reduces the time it takes to create documents while simultaneously improving their quality by reducing human error.
AXA XL: Automated policy issuance using document automation
Global insurance leader AXA XL has taken a balanced approach to digitization. Recognized as one of the most innovative companies in the insurtech sector, AXA XL is making significant investments in global planning and technology investment to build a future incorporating connected health, big data and artificial intelligence. The company’s bold initiative with Microsoft to create a digital health platform is just one example.
Internally at AXA XL, a document automation project for policy issuance reflects the company’s approach to continuous innovation. Practical solutions that can increase efficiency and reduce costs are valued. One example is the company’s automation of policy issuance.
The property and casualty group at AXA XL traditionally ran a manual process for issuing thousands of insurance policies. Data entry staff would type up specific policy details, client names and policy numbers – a time-consuming and error-prone approach. AXA XL deployed document management technology to transform insurance policy issuance. Policy libraries were created with templates for base policies and their associated endorsements. This was also a benefit for non-policy issuance staff as they could access these documents without having the ability to amend them as a reference; thus, the integrity of the documents was protected.
To generate a new document, a staff member simply enters a document portal and selects the appropriate template. In the background, the system pulls data from the company’s internal systems and pre-populates the document with some of the information needed. The staff member then answers questions in an interview. Using the responses to these questions, the system generates the finished document in Microsoft Word. All documentation is formatted to company standards and brand guidelines during the automated process.
A practical — and strategic — approach
For AXA XL, a HotDocs document automation project was a practical solution, easily deployed, with a focus on issuing policies in digital form with a high rate of accuracy. The document library serves as an accessible information resource for sales, adjusters, underwriters and claims staff.
Document creation and management are also strategic at AXA XL in that the coding and documents align with standards; the library of documents created in the automated application is available for future initiatives as the company continues the digital transformation journey.
Benefits of document automation
Automation can be a game-changer for insurance companies, and a document automation solution can be rapidly deployed. Insurance companies are embracing document automation to increase efficiency and reduce costly errors. Automation allows insurers to improve profit margins and deliver a higher level of customer service that builds loyalty. Expect the following benefits from a document automation system:
A solution that scales with company growth
Once a document automation process is set up, the creation and editing of document templates are simple enough to maintain without the skill level of a developer. The process can grow and adapt to changes in service offerings and documents. Once established, applications can quickly and easily be rolled out to new teams, departments and offices.
Enhanced compliance
The ability to create built-in internal and external rules and regulations ensures industry compliance and drastically reduces the risk of noncompliance. The application is coded to align documents with company policies and industry requirements. Version control ensures that all users and systems produce documents from the most current compliant version of the document template.
Improved customer service
Perhaps most importantly, customers appreciate faster, more accurate policies. Downstream integration with CRM systems and claims processing programs streamline workflows and put accurate policy information in the hands of sales and customer service teams.
Competing in times of rapid change
Document automation is built on standard technologies, a flexible approach that preserves the accessibility of data in libraries and document storage. A document automation solution is future-proof, as it can integrate with AI tools to create next-generation disruptive innovations in insurance.
The insurance industry is a hypercompetitive arena, where providers face off primarily on price and the quality of the services that they provide. Document automation helps insurers compete from a position of strength, allowing them to price and underwrite more accurately, increase efficiency and better serve customers.
Matthew Groom is a product marketing manager for AbacusNext, the leading technology provider for the legal and accounting professions. He is responsible for aligning product strategy to go-to-market tactics and developing innovative marketing programs that drive demand.
The opinions expressed here are the author’s own.
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