According to the Palo Alto Research Center, claims processing accounts for up to 90% of an insurance company's administrative overhead. Cutting this cost, while maintaining high levels of customer service, can give any property and casualty insurance company a competitive advantage. One way to cut these costs is to streamline the front-end capture system of claims processing.
Front-end capture is defined as gathering the claim form and all supporting documents, including estimates, receipts, correspondence, and photos—all of which are needed to process a claim. There are two ways to cut front-end claims processing capture costs: in-house intelligent forms capture and BPO.
Traditional forms processing software does well at processing high volumes of paper claim forms but not at capturing all other documentation as well as that which isn't paper.
Intelligent forms capture with software captures documents from scanners, multi-function peripherals (MFPs), fax machines, email, and network sources, and converts them into electronic images, extracted data and metadata. Documents are automatically classified by type (e.g. claim form, correspondence, receipts, etc.) and data is extracted based on rules per document type, which helps to eliminate manual, error-prone data entry. Extracted data is then validated and passed along to the claims management system. By automating and streamlining the process, intelligence forms capture can cut claims processing costs by 50% or more.
Particularly for those faced with the prospect of replacing old scanners, legacy software and claims processing clerks, insurance companies may want to consider outsourcing the claims processing capture process to an experienced business process outsourcing (BPO) partner—known as a document scanning service bureau.
Outsourcing claims processing capture eliminates staffing cost and headaches, frees up IT resources and precludes the need for periodic capital investment needed to keep the system operating at peak efficiency. Service bureaus invest regularly in document capture technologies, ensuring they keep up with claims processing needs and enabling your organization to focus resources on maintaining the claims management system instead of worrying about the capture subsystem. Service bureaus also tend to operate in three shifts, enabling them to meet demand peaks.
Intelligent forms capture offers the following benefits:
- Reduced handling costs
- Faster processing with fewer errors
- Enhanced customer service
- Regulatory compliance
If you want to utilize industry-leading front-end capture technology but don't want the labor expense and headache or capital tied up in hardware and software, outsourcing to a company like The Windward Group may be the way to go. Either way, let us know if we can help.