Each insurance submission’s underwriting needs loss runs that need to be acquired manually every time. One of the difficult parts of the insurance underwriting process is obtaining an accurate picture of the prospect’s loss history. But why is it cumbersome to collect all the reports and extract data from them accurately? Part of the problem is the high document variability and the massive amount of data from the reports.
This blog will highlight the importance of loss runs and how automating this process can transform the commercial underwriting process, so carriers can unlock the value in their unstructured data and evaluate risk faster.
Inconsistent Document Formats & Types
Complicated Data Capture Process
Increased Probability of Errors
High Turn-Around Time
Are you aware of the good news? Artificial intelligence (AI) provides ways to perform the complex task of converting loss run data into structured format far more efficiently. These solutions are scalable, seamless, easy to operate, and simple to manage. Companies can process documents faster and streamline operational procedures using a range of AI techniques. This leads to fewer errors which implies fewer corrections and customer retractions.
A recent PwC report highlighted ‘that even the most elementary AI-based extraction techniques can save insurance businesses 30 to 40 percent of the time which would have otherwise been spent on such processes.’
Loss runs can appear in various formats from different sources — and it can run into many pages. It will be a tedious job if the information residing in these loss runs are to be manually entered into the spreadsheet. For instance, a midsized insurance carrier that processes 100,000 pages of documents yearly at 3 minutes each page, it would take approximately 5,000 person-hours to accomplish the task; at around USD 50 per hour, that’s $250,000.
Now, what if the same company could deploy artificial intelligence?
By implementing an AI solution and assuming the 40% estimate above, the midsized insurer could save 2,000 hours for every 100,000 pages processed.
Insurance companies can fully automate the loss run data conversion process into a structured format by training the software using advanced AI and ML techniques. The tool will then “read” the reports and extract relevant data for input into the underwriting system.
Do you know that a process that takes human hours to complete, automation completes it in seconds that results in reduced turnaround time in processing a submission? It helps carriers to automate data extraction & validation and enables them to transform loss data from varying templates to a structured format. That’s not all; there’s more to it. You should know that the automation tool does not get tired and make mistakes which leads to higher accuracy & greater ROI.
If you would like to learn more about seamless automation of various important insurance processes, please feel free to schedule a call with our team today. Let us partner with your company and help you unlock the value in your unstructured data.