The insurance industry continues to transform as the pace of technology advances at lightning speed. Cloud computing and Artificial Intelligence (AI), underpinned by the pandemic-induced acceleration of digital transformation, have given rise to the growth of Intelligent Document Processing (IDP) solutions. Intelligent document processing uses advanced AI techniques, such as machine learning (ML) and natural language understanding (NLU), to automate the extraction and processing of information. Gartner considers intelligent document processing to be one of the tech trends with the highest short-term benefits for the insurance industry.
Until recently, IDP solutions for the insurance industry were mainly focused on structured and semi-structured content, such as invoices, forms, and claims. There are good reasons for this. With 5 billion invoices issued annually, growing at 10% per year, the market size alone is a lucrative opportunity for IDP software vendors. Moreover, simple documents do not require particularly sophisticated technology.
From 2023 onward, analysts predict that the utilization of IDP for longer and more complex documents will gain traction. Processing unstructured, long-form documents like contracts and insurance policies requires more advanced NLU technology, as they often contain company- and context-specific language, surpassing the limits of generic solutions and legacy software. These tools have the potential to reshape almost every process in the insurance industry, from underwriting to claims processing.
Working closely with digital experts from the insurance industry, our team has identified five trends transforming the insurance industry as we enter a new era of truly intelligent document processing:
#1: Claims management will change exponentially. As IDP advances, the technology will not only accelerate claim processing, but even begin to automate data-driven decision-making.
#2: IDP solutions will increasingly help to reduce implementation gaps by automating the comparison of policies with the original quote.
#3: Technology to analyze complex documents at scale will help insurers streamline their policies and reduce discrepancies.
#4: IDP will improve the efficiency of complex quoting workflows and maximize the probability of closing deals.
#5: IDP will help insurance brokers automate the process of extracting key information from carrier proposals, driving efficiency and improving the customer experience.
The latest IDP solutions are pushing through the barriers of what is possible and moving from basic document processing solutions to intelligent systems that interpret complex information and automate key decision-making processes. It is clear that the technology has the potential to revolutionize the way that insurance companies handle complex and unstructured data, and transform different insurance processes like claim decisioning and quoting.
To explore these trends in more details and understand the implications for your organization, get your personal copy of the white paper.
