This series of blog posts provides an overview of how a Phoenix-based insurance company implemented a document management solution that improved productivity, customer service, disaster recovery, and process integrity while holding the line on labor and other costs. In this blog post we will discuss how the insurance company used document management solutions to decrease cycle times, primarily due to reducing the amount of time spent trying to track down and/or distribute files.
Immediate Access to Any File
While it’s critical for all insurance companies to adequately assess risks during the underwriting process, a mutual insurance company like the company discussed in this article is keenly aware of the potential impact one policyholder’s action can have on everyone. Thus, the paper-laden Underwriting Department (UW) was a logical first place to start as it is the beginning of the process. UW began scanning documents and implementing the document management solution’s Workflow in the spring of 2004. In addition to scanning incoming documents, the insurance company also scanned 26 years of existing UW documents, many of which presented pre-sorting challenges, in about 8 months.
The insurance company’s UW staff scans the mail daily. Capture software is used to capture specific values from standard documents (such as a policy number from an application). Indexing is also facilitated by drop down menus and the automatic population of keywords using data from insurance processing software based on the file number.
Based on the type of document (e.g., new/renewal application, correspondence), territory and other factors, the scanned images are routed to processors working with the insurance processing software. Using dual screens to view the insurance processing software and the document management solution image simultaneously, information from the image can be entered into the insurance processing software. The images are then routed through the workflow process. Workflow collects the supporting documents as well as providing E-Forms with checklists. After review and approval, the documents are sent to an Assistant UW for policy issuance.
Similarly, the Claims Department scans its documents at the departmental mailroom. Based on the file number that already exists in the insurance process software, indexing information is downloaded for those documents. A claim representative uses the document management solution to manage documents associated with the claim.
Workflow is also used to manage the multiple approval processes involved in Accounts Payable (AP). Scanned documents are indexed using the document management solution’s AutoFill capability to pull indexing information from the insurance company’s accounting system. Accounting routes the invoice to a department where two levels of approval are required and the account code is assigned. When it is returned, Accounting posts it to the Accounting system.
These automated workflows decrease cycle times, primarily due to reducing the amount of time spent trying to track down and/or distribute files. Because of the increase in productivity realized by using the document management solution, the insurance company’s employee count has remained steady for the past several years, despite the significant annual growth in the number of insureds.
For more information about document management solutions, continue to visit our blog or contact OSAM Document Solutions, Inc.