How intelligent document processing levels up catastrophe claims triage

Jun 08, 2022 by Automation Hero

Climate change threatens to overwhelm the P&C insurance sector. Here’s how intelligent process automation can help

Property and casualty insurance providers are no strangers to emergencies, especially since the number of  claims filed each year are rising significantly. A 2021 report by LexisNexis on home insurance trends found that extreme weather events drove catastrophe losses up 40% from 2019. The cost of wind damage payouts increased by an even higher 63% in that same time period.

As global temperatures continue to rise due to climate change, so does the frequency and severity of extreme weather events that cause property damage and bodily harm. As a result, the claims triages that get P&C insurance providers through busy seasons are becoming year-round, permanent fixtures. Without investment in AI and intelligent document processing (IDP) technology, these triages won’t be enough to keep up with processing catastrophe claims as climate chaos begins to impact our lives even more.

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The limits of catastrophe claims triage

Like triages at hospitals prioritize the most urgent emergencies, insurance triages are designed to route resources to the most important claims. For insurance companies still relying on heavily manual processes, the volume of claims from increasingly common extreme weather events could soon become completely overwhelming. Catastrophe claims triages break down because of the following:

Burdensome processes

Manually reviewing each first notice of loss (FNOL) and supporting documentation is incredibly time consuming. After a natural disaster and other emergencies with high damages, claims adjusters can spend entire days reviewing documents and organizing files, leaving no time to actually process claims.

Human error

The rush to close a high volume of claims, not to mention exhaustion and burnout, can make manual processes incredibly vulnerable to human error. Adjusters can easily miscategorize files or fail to properly prioritize claims, leaving distressed customers stuck — not to mention more likely to switch providers, dispute settlement offers, and take insurers to court.

Slow customer response times

Risk of compliance breaches and lawsuits increase dramatically when customers don’t receive prompt responses to their questions. Property damage can be as emotionally trying as it is expensive, so customers often need a personal touch from their insurance providers during these times. With claims adjusters so busy with draining, mundane document-related work, customer service can fall by the wayside.

How intelligent document processing levels up the catastrophe claims triage

For claims adjusters familiar with RPA and other legacy technology, it may seem impossible to automate document processing tasks — but that’s exactly what AI excels at. Automation Hero is leading a new generation of intelligent process automation platforms that streamline the most complex workflows in the insurance industry. The platform has a long track record of processing insurance claims, FNOLs, and other documents in a fraction of the time it takes human adjusters. Here’s how intelligent document processing helps P&C insurance providers:

Increases sorting accuracy

The advanced AI in intelligent document processing software can improve database accuracy by extracting information from multiple channels (email, texts, document scans) to sort them to the right databases, so teams get a jump start on processing claims. Administrative document tasks that could take human workers an entire day to complete can be done in moments.

Recognizes and extracts critical data

In addition to understanding what documents are, Automation Hero’s deep-learning AI can automatically extract essential information, such as the name of the policyholder, what’s been damaged, and how much it costs — without the need for any human review. Not only does Automation Hero cut down on the amount of reading each claim adjuster has to do but it can also process hundreds or even thousands of documents at once, helping teams handle unexpected claim volume after significant or unpredicted disasters.

Improves customer service

With AI handling so much mind-numbing work more quickly (and accurately), claims adjusters can do what matters: keep customers satisfied. They can focus on providing white-glove service to customers with the most expensive or complicated claims, reducing the likelihood of a lawsuit.

Intelligent document processing software can even recognize common customer requests in emails, such as asking for claim status updates or asking to change an address on file. Automation Hero can also automatically reply to requests or send them to a human based on the sender’s sentiment and tone. This capability speeds up response times so policyholders aren’t waiting on a human to get to their email and frees up claims adjusters to spend more time on complicated customer issues.

Automation Hero is optimized for the needs of insurance companies. With an advanced, deep-learning AI, it has already helped insurers like Kin, Baloise, and Markerstudy reduce their claims processing times, making it the perfect ally for scaling claims triages. Automation Hero has a proven track record of reducing costs for processing claims, reducing labor, and saving claims adjusters from burnout. Read our new e-book to see what else our AI can do for your insurance company.

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Learn how we helped Markerstudy reduce its claims processing time by 40%. Additionally, learn how we reduced total claim processing time by 80% for another multinational insurance partner — cutting down manual tasks from 10 minutes to just two minutes per claim.