Improving Insurance Claims Processing with Optical Character Recognition (OCR)

By Scott Mackey | March 25, 2018

How to Increase Operational Efficiency with OCR AutomationThe use of automated Optical Character Recognition (OCR) is critical to the success of digital transformation initiatives in the insurance industry. OCR creates efficiencies by automating manual workflows, allowing organizations to streamline customer-facing processes and respond faster with fewer resources. OCR also reduces human errors and frees up knowledge workers to focus on higher-value work. Finally, OCR allows enterprises to transform vast volumes of data into highly searchable assets that can be accessed, leveraged, and extracted for business insights.

Read on to learn how one of Adlib’s global insurance customers was able to leverage the power of OCR to conquer their claims processing and data capture challenges.

The Challenges

The insurance company in question was a large provider of “last resort” insurance that took in approximately $1 billion in policy data each year. Documents were received in a variety of ways: paper, scanned images, emails, SFTPs, and through a digital drop box. Much of the data was unstructured and non-searchable, which meant it had to be manually converted to a format that would be usable in downstream workflows.

Manually entering the data—and sorting and classifying the documents so that they could be used in the next step in the workflow—was an onerous process. Staff was underutilized and frustrated, and the process was slow and prone to human error.

The company had assembled a variety of apps to process the incoming data, but much of the technology was outdated and, in some cases, used unsupported programming languages. As a result, the company suffered regular technical issues that interrupted workflows and cost them business.

The organization estimated that they suffered 24,000 delays or stoppages in the data capture process per month for different policies. In their own estimate, these interruptions were costing them approximately $100 million in revenue annually. To add insult to injury, they were also losing money in staffing costs and from the errors, delays, and inefficiencies of manual processing.

The organization wanted to grow this lucrative line of business—even creating a business priority called the “Customer Integration Framework”—but they realized manual intake of documents had created a bottleneck. And until that restriction was removed, no progress could be made.

The Adlib Solution

As part of the Customer Integration Framework, the company knew they needed a standard way to accept, analyze, and process documents, and then distribute and share those files with external parties (such as government agencies, doctors, law firms, brokers, and program managers). To solve the problem, several different technologies would need to be employed. The company also recognized that they needed an automated workflow and claims processing solution with high OCR accuracy.

As part of the company’s search for a way to accelerate their policy and claims ingestion, they tested several solutions. Ultimately, they chose Adlib’s Data Capture solution. Adlib’s solution became an essential sub-system for optimizing OCR and OCR accuracy within the content integration and conversion steps in the new workflow.

In the new workflow, Adlib’s Data Conversion solution would automatically turn incoming content into high-definition PDFs. These files would then be put through an OCR process. Finally, claim numbers could be identified and used to sort all the files related to each claim. Policy and business-related data could also be extracted and transferred directly into the company’s online system.

The Business Outcomes

The new solution increased internal efficiency in both the new policy and claims processing workflows. Staff no longer had to manually deal with incoming documents, nor did they have to waste time doing data entry in the online claims systems. Because of the increased OCR accuracy, errors were reduced considerably. The company was also able to reassign key knowledge workers to tasks that made better use of their capabilities.

The benefits of the new workflow were significant enough that, after the solution was implemented, the organization began to roll out the Adlib OCR solution to other lines of business and other divisions of the company.

To learn more about this transformation, and how OCR could help your company streamline claims processing and other critical workflows, read the full success story.

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