7 Signs Your Insurance Tracking System Needs an Upgrade ASAP!

Handling insurance documents is no joke. The numbers are massive, and so are the stakes. With fluctuating formats and overwhelming volumes of heterogeneous insurance documents, the challenge only keeps growing. It’s high time you opt for a COI tracking system that’s efficient, fast, and reliable. The following stats pretty much wrap up what the industry situation looks like-

• The financial and insurance sectors account for nearly 14% of total office print volume. 
• Individual insurers alone handle more than 100,000 documents each year on average. (These numbers are only going to expand in the future. See the next pointer to know why) 
• The global B2B Insurance Market size is expected to reach USD 24.37 billion by 2032, growing at a CAGR of about 11.1%, during the forecast period.

Outdated Insurance Tracking: Are You Handling Your Insurance Documents Like a Caveman?

Insurance tracking isn’t just tough—it’s a never-ending puzzle. With multiple policy types, evolving regulations, and varying underwriting standards, forcing insurance documents into a one-size-fits-all template is nearly impossible. The sheer volume and diversity of insurance documents make manual tracking an unsustainable burden—even for leading insurers.

Yet, many firms still rely on outdated manual processes, leading to higher error rates, compliance risks, and skyrocketing operational costs. Reports say that over 98.67% of insurance companies still depend on manual data entry teams for insurance tracking. Is your company one of them? If you recognize even two of these red flags in your workflow, it's time for an AI-powered upgrade to automate compliance, reduce errors, and improve efficiency.

7 Signs Your Insurance Tracking System is Outdated

1. Large & Unstable Data Entry Teams

Having a large data entry team in 2025 isn’t a badge of honor—it’s a warning sign. Here’s why:

• Skyrocketing People Costs – While competitors automate workflows, reducing overhead, you’re hiring more staff, and increasing costs without proportional productivity gains.
• High Turnover & Knowledge Loss – Data entry roles see constant attrition and this trend has become stronger post covid. Every exit means losing critical expertise and spending more on training new hires—a never-ending cycle that drains resources.

2. Manual Policy Classification & COI Sorting

Manually stacking and versioning insurance documents is a major bottleneck. If your team manually sorts and crops 1,000-page policy documents, you’re:‍

• Slowing down workflows and falling behind competitors who automate this process.
• Increasing error rates—Manual classification isn’t just slow; it’s prone to costly mistakes.
• Losing efficiency—Automation speeds up workflows 3x, while manual processes drag them down.

3. Traditional Document Processing Systems Such as Legacy OCR

Legacy OCR systems, are now nearly as inefficient as manual processing when it comes to handling modern insurance workflows. Designed primarily to convert printed text into machine-readable formats, OCR lacks the intelligence to interpret complex, multi-policy insurance documents. Since insurance policies vary by provider, policy type, and jurisdiction, OCR struggles to recognize and extract critical details accurately, especially when dealing with different layouts, embedded tables, handwritten annotations, or varying font styles - calling for manual stacking and versioning and constant verification checks.

Some of the shortcomings of legacy OCR include:

• Lack of contextual understanding
• High error rate
• Integration challenges with other software
• Requires multiple checks and reviews
• Demands manual stacking and versioning
• No real-time data processing
• Limited customization options

Moreover, OCR’s accuracy heavily depends on document quality. Poor resolution, stains, skewed text, and blurriness make data extraction unreliable—issues that are often beyond control.

One alternative for this is to switch to ML AI OCR or IDP (Intelligent Document processing). Unlike OCR, Intelligent Document Processing (IDP) doesn’t just convert text; it reads and understands documents in context. This allows the system to automatically classify the different insurance policies within a document with the highest accuracy.

Infrrd’s IDP workflows include a robust pre-processing stage that automatically detects and rectifies quality issues—such as low resolution, skew, or blurred text—before extraction. Once the document quality is corrected, it is automatically classified into individual policies and then sent for extraction for the best accurate results.

4. Template-Based Data Extraction Software

Insurance documents come in millions of variations, making it impossible to predict every format. Template-based systems struggle to keep up, requiring constant IT intervention to create and update templates—resulting in hidden costs and workflow delays.

A template-free document extraction system eliminates these inefficiencies by adapting to new formats automatically, without manual intervention. However, achieving this level of flexibility for insurance documents is challenging, as it requires extensive industry-specific pretraining to ensure accuracy.

That’s where Infrrd iTrackPro excels. Optimized and pre-trained on billions of real-world insurance documents, our system extracts over 100 custom insurance fields with exceptional accuracy. To further ensure precision, we validate all extractions through a reliable confidence score, giving you trustworthy data without the hassle of template maintenance.

5. Slow Carrier, Policyholder Onboarding and Tracking

This section is specifically for third-party insurance tracking firms and insurance compliance trackers. Banks and insurance originators partner with insurance tracking providers like yours to eliminate the burden of managing thousands of documents—not to face more delays. But if your firm relies on templated, outdated OCR-based software, you’re losing valuable time and revenue.

Traditional OCR-based insurance tracking systems take up to 3 months to customize and implement, driving up costs and delaying client onboarding. Manual verification only worsens the problem, creating bottlenecks that slow carrier and policyholder onboarding.

On the other hand, a flexible, AI-driven insurance tracking system eliminates these inefficiencies by:

✅ Automating policy tracking without manual template setup
✅ Reducing onboarding time from months to days
✅ Ensuring real-time compliance monitoring with zero manual intervention

6. Manual Compliance Compliance Audits

Manual insurance compliance tracking is slow, error-prone, and unsustainable in today’s rapidly evolving regulatory landscape. Tracking compliance manually not only consumes valuable time but also increases the risk of missing crucial updates, exposing your firm to penalties and non-compliance risks.

The insurance industry has undergone a compliance surge post-COVID-19 as regulators address backlogs and new risks like climate change, technological integration, and consumer protection. In the first half of 2023 alone, there were 1,700+ state insurance regulation changes, an 8% increase from 2022—a trend expected to continue in 2025.

7. Unclear ROI in Policy & COI Management

For insurance tracking firms, efficiency isn’t just about meeting deadlines—it’s directly tied to profitability. A slow, manual insurance tracking process may not seem like a direct expense, but the hidden costs of labor-intensive workflows, processing delays, and compliance risks can significantly reduce your profit margins.

If you’re not tracking the ROI of your automation, that’s a major red flag.

If you’re already automating your insurance tracking or planning to, always ensure you have a clear ROI expectation for your automation investment. Ask your vendor to provide a detailed ROI forecast and continuously monitor whether those expectations are being met on time.

In a Nutshell 

The insurance industry is set for rapid growth in the coming years. As an already document-heavy sector, the volume and complexity of insurance documents will only increase. If your firm relies on outdated insurance tracking methods, you risk slower workflows, higher costs, and shrinking profits.