OCR for Insurance Industry

OCR for Insurance Industry

OCR for the insurance industry, intended for paper document processing, is an automated system that guarantees greater accuracy without supervision.

The insurance industry is by and large one of the biggest professional fields in the world. Predictably, the amount of paperwork churned out is extremely high and can suffocate work operations if it isn’t managed well enough.

Modern-day technology like Optical Character Recognition (OCR) is very important for the continual digital improvement of the insurance world.

This type of technology enables automatic integration, selection and evaluation of documents, and aids processes throughout the company. OCR technology can be very helpful for an insurance firm in many cases, starting for example from the insurance claim procedure, all the way to product development or customer support.

Before the creation of OCR for the insurance industry, insurance providers scanned paperwork whole and converted every file into a compressed digital image format.

With the personal involvement in hand-operated data importing, this process is unreliable, error-prone, tedious, and also really expensive.

As well as, most of the time, manual data importing is difficult to put into operation. For example, a big insurance provider gets more than 1 million records each day. They could not find enough office personnel to process all documents manually.

Also, in the insurance market, long delays may ruin the whole client experience. As a rule, people only get in touch with their insurance provider once they are dealing with some kind of an emergency.

Late payments produce unnecessary stress and destroy good faith in an insurance company’s service. As time passes, continual delays may result in failing client trust and retention rates.

While there are requirements set by the Association for Cooperative Operations Research and Development to address common work inefficiencies, it is ultimately the responsibility of the insurance institution to work out solutions for the proper handling of documents.

Fortunately, document management software like file compressors and Optical Character Recognition (OCR) applications are designed to allow the user to reduce the size of a large file for easy storage and accessibility, to support faster sharing of information (e.g. via email), and to reduce overall costs required for large storage facilities and network bandwidth.

Arguably, efficient document management will support all operations in an insurance company – which will be reflected in a higher return on investment compared to competitors in the same industry, who still rely on old-school storage facilities for hardcopy paper-based documents.