Paperwork – it is a term that sends shivers down the spine of many professionals, particularly those working in the commercial insurance sector. Often viewed as a necessary inconvenience and despite living in an increasingly digital world, insurance companies appear to be sinking in a sea of documents. But why is this the case? In this blog post, we will delve into the root causes of this phenomenon, explore its implications, and hint at a solution that might just change the game.
Commercial Insurance Brokers and Carriers manage intricate and high-value risks. They deal with multinational or large domestic corporations, all with custom insurance needs across multiple lines of business. In Commercial Insurance there are always at least 3 parties involved – Broker, Carrier, Insured.
In the past this ‘paperwork’ would land with a thud on someone’s desk, nowadays the documents are digital copies but the process of reviewing documents in Commercial Insurance still follows the same painstaking process.
So, what is being done with these documents? Here is an example of the quotation to policy issuance process between a Broker and Carrier.
- A broker discusses the insurance needs with their client for a policy renewal or new business case.
- These details are sent as a ‘submission’ to a set of Insurers – The Underwriter must understand the document, work out if the risk meets the acceptance criteria, then populate various systems to generate and issue a quote.
- The broker will then compare the various Carrier Quotes and make a recommendation to the client.
- After this a Binding document or Policy document will be issued to the Broker
- This is then compared, potentially revised, and issued.
So, where does this leave us? A huge amount of manual review is still required with dumb digital documents. This is extremely time-consuming and requires expert resources.
But the work is essential – Carriers need to ensure the right risks are being taken on at the right premium, Brokers need to ensure that the Client gets the best, most appropriate coverage at the right price and that what was agreed makes its way into the Policy…The consequences of mistakes are significant.
The processes above do not even factor in the Claim process where a further collection of unstructured documents is read, processed, and interpreted. The history of losses known as ‘Loss runs’ are a classic example of the complex documents passing between Brokers and Carriers, these can contain 10 years+ of loss details from different Carriers.
Paving the Way for a Solution: Insurants
So, is there a way out of this quagmire? The answer lies in solutions like Insurants, that leverage Intelligent Document Processing infused with generative AI capabilities to analyze and process the myriad of policies, quotes, binders, and submissions that contribute to this deluge.
Insurants was built from the ground up by a team of insurance veterans to specifically read, process and understand the insurance documents that others cannot (trained on tens of thousands of Carrier Documents across all lines of business for starters).
While complex documents seem to be an inevitable part of the insurance industry, tailored solutions like Insurants offer a beacon of hope. We have a tailor-made solution designed to help insurance companies navigate their way out of the maze of complex documents and focus on what truly matters – providing excellent service to their customers.
We are just getting started and we’ll have more news to share in the coming weeks and months on where we plan to take Insurants. In the meantime, don’t hesitate to get in touch and share your thoughts.
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