What is Insurance Document Management System?
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An insurance DMS helps companies of different sizes digitally manage, create, store, and track their paper-based documents. It is a solution that helps you with several paper-based documentation challenges, such as secured storage and retrievability. Insurance document management software helps insurance companies deal with challenges, such as multi-level processes and scattered documentation.
It’s no hidden knowledge that online document management systems play a significant role in the insurance industry. A typical largely- followed manual approach of client and document management puts these companies in a situation where they risk losing clients because of poor customer service.
This is because of these companies’ old-school approach to storage cabinets. A single lost document can hold them liable for the client’s loss, and insurance is a significant and extremely lucrative industry they have to pay hefty compensations for negligence.
One of the primary reasons insurance companies leverage digitization is that good customer service is a crucial aspect of their business since their customers’ trust keeps them in the industry.
An online document management tool can be beneficial for you in many ways. But let us first see what other challenges insurance companies face due to manual document management processes.
Challenges faced by Insurance Companies:
1. Multi-level complex processes
Since multiple stakeholders and stages are involved in the insurance claim process, the entire process of providing a claim settlement to a beneficiary becomes very complex.
For instance, a death claim would include the following four stages:
2. Intimation from the beneficiary
This stage would require the beneficiary to notify the insurance company of the person’s death along with other necessary details such as the place and time of death. A beneficiary can contact the insurance company directly via the customer service helpline or reach out to the insurance advisor.
3. Claim processing
Once an initial intimation has been received, the insurance company would request the submission of crucial supporting documents of your claim, such as the claimant’s statement, original policy document, death certificate, police FIR, and other documents they might deem necessary.
4. Submission of documents
In many cases, these documents reach the TPA first to verify the details and ensure that the claim is genuine as per the submitted documents and that it should be further processed. Once the TPA is satisfied and validated, the files reach the company for further processing.
5. Settlement
After the process is concluded, a damage evaluation is done in cases of losses based on the documents submitted by the TPA, which after that holds the company liable to compensate the beneficiary within the specified period of time; in death claim, within 30 days from the date of approval.
Now all of this requires a lot of back and forth from the very initial stage of intimation. The documents must be scanned manually and mailed every time a new stakeholder is involved to ensure the claim amount is justified. In medical claims especially, there is the active involvement of the hospital, the TPA, the insurance company, their internal legal team, and medical professionals.
Manually managing all these delays the claim process, and the customer experience with the company is compromised.
Scattered documentation
Every time a new collaborator gets involved in this process, the already involved people, say the hospital staff or the TPA, would have to provide the necessary documentation to the concerned person for proper assessment.
The entire process of receiving and processing documents and finally getting the validation on the same is repeated a zillion times for a single claim to get approved. And a single mistake while filling out the forms or filling the same can add to the tasks of the people involved.
Data mishandling
The most significant disadvantage of the paper-pen document creation method is that it is highly error-prone. Medical professionals have to deal with several patients in a day, and a single mistake while filing the documentation of a single patient can cause significant losses. Moreover, data mishandling can also make the hospital or insurance company liable for negligence and consequential damage caused to the party.
Retention period
Insurance records are mandated to be maintained in proper condition and retained for an extended period of time for regulatory purposes. For instance, medical records documented during the process of claim are required to be maintained for a period of 3 years after the patient’s treatment begins.
Considering the number of insurance claims raised in a single day for various sectors, be it a motor vehicle or medical, it indeed becomes a task for these professionals to maintain an in-house archive of these without a proper system.
Retrieval of client document
One of the significant reasons the customer experience gets hampered in the absence of a document management system is that retrieving the client’s documents instantly at the time of claim intimidation becomes difficult.
In such instances, having a centralized repository of things becomes essential because segregated information in files and folders often tends to create siloes that restrict quick and easy access to information.
How can Insurance Companies benefit from dox2U insurance document management system?
Better categorization
With a document management system, the entire process of managing claims and related documents of your clients will become extremely easy and efficient for you. This is because an efficient document management system will help you easily organize digital records with the help of category-specific tags and customizable tag templates.
This functionality will allow you to link your client’s documents related to a particular claim together so the challenge of scattered paper that you face regularly can be eliminated.
Quick retrieval in Insurance document management software
For improved customer service, you need to be able to put a centralized system of documents in place, which will help you access them as and when required without compromising the privacy and security of confidential information.
Advanced document management systems like dox2U are equipped with state-of-the-art technologies like OCR/ICR, which incredibly helps with the retrieval process. It’s additional functionality that allows you to search for the document with the help of keywords that it entails.
So that even if your staff needs to remember a particular client’s details, you can still find it without wasting much of your time.
3. Convert documents
The OCR-powered engine of your DMS will also allow you to create workable digital copies of documents automatically without going through the pain of manually doing the same. This will help you eliminate the mundane task and help your workforce focus on more critical value-adding operations.
4. Collaborate easily
A document management system will also allow you to collaborate with different stakeholders involved in the process, eliminating the manual procedure and reducing the chances of mistakes, overlapping tasks, and communication gaps.
An efficient document management system is highly beneficial for insurance companies since it can help them better serve their customers and establish a strong foothold in the industry. However, choosing the right document management system is essential, given your requirement.
You need software that provides essential features such as audit logs, granular access control, encryption, shared repository, and more. But where will you find software like that? Well, you are in luck because dox2U is equipped with all these functionalities, and above everything, it comes with pay-as-you-go plans packages.
