Overcoming the Manual Challenges of Insurance Tracking

Overcoming the Manual Challenges of Insurance Tracking 

Are you juggling multiple insurance policies, struggling to keep track of expiration dates, verifying coverage levels, and managing heaps of documentation?

Sound familiar? 

The need for efficient insurance tracking is evident. Let's delve into what insurance tracking entails and why it's crucial for various industries, particularly for lenders safeguarding their loan portfolios.‍

What is Insurance Tracking?

Staying on top of insurance is crucial. This applies to various types of policies across different industries, like house/property, liability, and auto insurance. It's especially important for lenders (Credit unions, Mortgage companies, and Banks) who provide loans for assets like houses and cars (called collateral). These lenders need to ensure borrowers keep proper insurance coverage, minimizing risks to their loan portfolio. 

Businesses frequently encounter challenges with insurance tracking, which can result in potential gaps in coverage and heightened risk exposure. Given the steady annual increase in insurance premiums, maintaining vigilance over policy renewals and coverage levels is increasingly crucial. Effective insurance tracking is essential for ensuring that policies remain active, offer sufficient coverage, and are promptly renewed to mitigate risks. 

Understanding Insurance Tracking and its Vital Functions

An insurance tracker goes beyond checking if a policy exists. They also verify if the coverage is adequate and addresses regional risks, like flood insurance in flood-prone areas or wildfire coverage where applicable. Our research shows that trackers ensure policies include essential elements like property damage, liability, and relevant regional risks. Here are some key aspects relevant to an insurance policy:

• Monitoring policy expiration dates: Tracking when insurance policies expire and ensuring they are renewed before lapsing.
• Verifying coverage levels: Checking that the insurance policy provides adequate coverage limits based on the insured party’s needs and any changes in circumstances.
• Managing documentation: Organizing and maintaining records of insurance policies, including policy documents, renewal notices, and certificates of insurance.
• Perils coverage and deduction: Checking if all kinds of perils are covered in the insurance policy or if some are excluded.
• Flood coverage, Windstorm coverage, Wildfire coverage: Not all locations face the same climate risks. In areas prone to floods, windstorms, or wildfires, lenders must be vigilant in ensuring borrowers have adequate insurance coverage. Especially if the property is near a body of water or a forested area, flood, windstorm, and wildfire coverage becomes crucial to protect against potential financial losses.
• Compliance management: Ensuring insurance policies comply with legal requirements, industry regulations, and contractual obligations.
• Addressing gaps in coverage: Identifying gaps or deficiencies in insurance coverage and taking steps to manage them, such as purchasing additional coverage or adjusting policy limits.

Why do Insurance Trackers Hire a Data Entry Team?

Ensuring borrowers maintain appropriate insurance coverage on Mortgage Properties (or vehicles in the case of auto insurance) is crucial to mitigate risk against a loan portfolio. While some insurance carriers provide this information in an easy-to-consume format (EDI/XML), most still send it in paper format (PDF, JPEG, TIFF, etc.). This necessitates Mortgage Servicers and Insurance Trackers to manually analyze and extract this information by setting up large teams of humans before deciding whether to force-place insurance or notify the borrower to ensure proper coverage.

Pitfalls of Manual Insurance Tracking Processes

• Error-prone: Manual data entry is susceptible to human error, increasing the likelihood of inaccuracies in the tracking process. Such errors can compromise the integrity of insurance records and introduce indirect risks to the loan portfolio, potentially leading to financial losses or regulatory issues.
• Limited Scalability: Manual methods hinder scalability as they necessitate expanding the workforce in proportion to the volume of insurance tracking required. It often leads to increased management overheads, requiring additional resources to oversee and coordinate larger teams.
• Time-Consuming: Manual processes are inherently slower, creating bottlenecks that impede the timely processing of insurance documents. This delay can result in missed deadlines or failure to detect non-compliant borrowers, exposing the organization to potential risks within its loan portfolio.
• Operational Inefficiency: Scaling manual processes requires significant human resource and training investment. This entails recruiting and educating personnel about industry intricacies, which can be resource-intensive and prone to high turnover rates. Consequently, organizations may be trapped in a perpetual recruitment, training, and rehiring cycle.

Comparing Traditional OCR with Modern AI & ML-Based Solutions for Insurance Tracking

Let us explore how traditional OCR methods differ from modern AI and ML-based approaches. Also, look at how the transformative potential of advanced technology is in streamlining operations and enhancing accuracy.

Challenges of Legacy OCR Solutions in Insurance Tracking

Despite attempts by some companies to address the complexities of insurance tracking through OCR solutions paired with legacy layout-based approaches, many have found themselves reverting to manual methods. 

The reason? 

Insurance policy documents present a myriad of challenges that traditional OCR solutions struggle to overcome. For instance, a Policy Declaration document can differ significantly from a Policy Renewal document, making it difficult for legacy OCR systems to accurately distinguish between them. Moreover, layouts vary widely between insurance carriers like Geico, State Farm, or Allstate, further complicating the identification and extraction of pertinent information. Look at this snapshot of an insurance policy document to understand the complexity.

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The complexity doesn't end there. Data aggregators often present multiple policy information on a single page, posing additional hurdles for OCR systems to navigate. From varying document formats to disparate layouts, the landscape of insurance policy documents demands a level of adaptability and precision that traditional OCR solutions struggle to deliver.

As a result, many mortgage servicers and insurance tracking companies are frustrated with the limitations of legacy OCR solutions and opt to revert to manual data entry processes.

Making Insurance Tracking Easier with AI-Driven IDP Solutions

Embracing AI-based approaches represents a transformative step forward in addressing the challenges of insurance tracking. These cutting-edge solutions are uniquely suited to adapt to evolving data formats, offering a dynamic approach to information extraction from mortgage insurance policy documents.

By leveraging machine learning algorithms and iterative feedback-based learning, AI models can be trained to effectively classify and extract information from diverse document layouts and formats. The iterative nature of this learning process enables continuous refinement, resulting in the development of robust, production-grade models capable of handling millions of documents with precision and efficiency.

AI-powered IDP (Intelligent Document Processing) solutions offer a revolutionary approach to insurance tracking, enabling organizations to navigate the complexities of insurance documents with unparalleled accuracy and scalability.

Insurance tracking can be daunting and fraught with challenges that slow operations and increase the risk of errors. But what if a one-stop solution could streamline this process, saving you time, reducing errors, and ensuring compliance simultaneously? 

Efficient Insurance Tracking with Infrrd's IDP Packaged Solution

Infrrd, recognized as a leader in Intelligent Document Processing (IDP) by esteemed sources like Gartner® and IDC MarketScape, offers tailored solutions for efficient insurance tracking. Our advanced technologies cater to diverse sectors, including Personal Lending, Mortgage, and Insurance.

With Infrrd's IDP packaged solution, insurance tracking becomes seamless and efficient. Our platform allows for the swift ingestion of mortgage or auto insurance policy documents, enabling the quick classification and extraction of all pertinent information. The extracted data can be effortlessly exported into formats compatible with downstream systems, ensuring smooth integration.

Moreover, our intuitive user interface simplifies exception management, providing a hassle-free experience for users. Trusted by numerous insurance tracking companies and mortgage servicers, Infrrd's solution has successfully processed over 50 million insurance policy documents. Our fine-tuned insurance-specific workflow, honed through extensive experience, ensures optimized processing with precision and efficiency. We can successfully deliver the following business outcomes to our customers:

• 70% Reduction in People Costs: With Infrrd's IDP, streamline your business processes by shifting the focus to automation solutions rather than relying heavily on human resources.
• >99.5% Accuracy: Allow technology to handle the bulk of the workload, ensuring exceptional accuracy rates of over 99.5%. Additionally, leverage our maker checker functionality to decrease error rates by involving human review only for exceptional cases.
• 3x Faster Document Processing: Experience a threefold increase in document processing speeds, enabling you to meet customer SLAs more effectively and efficiently.

Real Results Speak Louder Than Words: Witness the Power of Infrrd

Choose Infrrd as your trusted partner for insurance tracking, backed by our proven track record and innovative solutions. Experience tangible business outcomes seamlessly, with over 90% of our customers reporting improved efficiency and productivity.

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8 Key Advantages of Using Infrrd IDP for Insurance Tracking

• Deliver real-time insurance tracking

With a significant reduction in processing times and effective document data automation, track and update borrower insurance data swiftly and accurately, providing real-time insurance tracking for the entire portfolio.

• Document visibility from the mailroom to actionable data

Ensure critical insurance documents are prioritized and processed promptly with Infrrd's advanced document identification and classification features, providing document-level visibility and routing.

• Handle more extensive portfolios without scaling your operations

With Infrrd IDP, reduce your manual effort by up to 90% while delivering reliable accuracy for your document data; you will free up bandwidth to onboard more lenders with more extensive loan portfolios with the team you have today.

• Talk to your document with questions about policy coverage

Ask questions like ‘Does this policy have flood coverage?’ and extract contextual answers from policy documents automatically. Detect gaps in insurance coverage by directly asking pre-configured questions about all policy documents with Infrrd’s DocQ&A feature powered by Large Language Models and generative AI. No coding is necessary.

• Consistently meet SLAs for ever-shifting document volumes

Meet and exceed SLAs consistently, even with fluctuating document volumes, leveraging Infrrd's proprietary No-Touch Processing (NTP) capabilities, ensuring a competitive edge in turnaround time. 

• Experience seamless automation in managing insurance documents 

Benefit from Infrrd's AI and machine-learning-powered platform, equipped with over 11 patents and advanced data extraction algorithms, ensuring accurate extraction from semi-structured and unstructured documents.

• Fastest return on investment. Delivered!

Achieve maximum ROI with Infrrd by boosting productivity, reducing operational costs, and freeing up bandwidth for onboarding new portfolios, leading to increased revenue generation. Since partnering with Infrrd, our customers in the insurance industry have reported their lowest processing cost per document yet. 

• In-built data security and compliance‍

Ensure compliance and data security with Infrrd's IDP platform, featuring built-in checks for regulatory adherence, intuitive audit capabilities, and configurable process deviations to mitigate compliance risks.

In the dynamic world of insurance management, staying ahead requires more than just traditional approaches. By partnering with Infrrd, businesses unlock numerous possibilities where advanced technology meets seamless operations. From real-time tracking to effortless model creation, Infrrd revolutionizes insurance tracking, ensuring compliance, security, and unparalleled efficiency. Embrace the future of insurance management with Infrrd and pave the way for unprecedented success in the industry. 

Bridging the Insurance Sector's IDP Gap

Discover the untapped potential of Intelligent Data Processing (IDP) in revolutionizing the insurance sector. Statistics reveal that a staggering 98.67% of insurance companies are still dependent on manual data entry teams; there's never been a more compelling time to explore the transformative capabilities of IDP. This glaring gap underscores a substantial opportunity for insurance companies to distinguish themselves as pioneers in AI adoption. By integrating AI into their operations now, these forward-thinking companies can position themselves as market leaders, gaining a competitive edge over their peers. Don't let your business fall behind—leverage IDP to propel your insurance operations into the future of data-driven efficiency and innovation.

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