Insurance brokers conduct their business in a fiercely competitive market environment. Insurance brokers need to digitize operations, both internal and customer facing to reduce cost and improve revenues. Digital technologies help alleviate challenges on customer acquisition and engagement front. Insurance brokers have invested in large teams for annual policy renewal. Now, we shall take you through the challenges of the policy checking and comparison process, and provide some insights on how to address the same using technology. Policy verification process is one of the first steps in an Insurance policy lifecycle and includes the following:
- A detailed comparison of Insurance policy with the proposal reflecting the benefits promised to prospective clients
- A meticulous review of every policy document for correctness (identifying errors)
- A comprehensive check of the policy document for completeness (identifying missing data)
- Verifying the accuracy of coverage details
- Reporting variances and following up for rectification
- Comparison of renewal policy with prior term policy
- Verification of endorsements and cancellations
- Checking for compliance with industry and company standards
- Ensuring that the final policy document is devoid of any discrepancy
The above process is largely people-driven with all the associated challenges that come from human enabled process. Attrition, training, information loss, human errors are issues Insurance brokers have to grapple with. The small window of renewal period also poses the additional challenge of managing for a short duration peak demand.
Insurance brokers are increasingly finding it difficult to tackle the procedural mistakes being made routinely in their offices every day. The large number of policies being handled every day, accompanied by their varying complexities proves to be a cumbersome task for Customer Service Representatives (CSRs) to review them in an efficient and timely manner. A CSR takes 40 minutes on an average to just check one policy and might skip some information due to oversight. Unidentified mistakes in the policy might prove very costly to brokers since they can lead to large E&O claims. Industry estimates approximately 5-10% of all E&O claims are attributable to human enabled policy checking environment.
Considering the challenges and complexities involved in manual policy checking and comparison, Exdion has developed a cloud-based smart Insurtech platform – Exdion.POD, which uses Cognitive Computing, Artificial Intelligence, Robotic Process Automation, Machine Learning and Deep Learning to address these challenges. While taking only a few seconds to run through the entire policy document, Exdion.POD efficiently clones the manual process of policy checking and eliminates the need for dedicated resources, thus enabling CSRs and Client Service Managers to focus on more critical activities.
For brokers’ convenience, the platform is available on a pay-per-use model. Brokers and agencies can avail customized pricing packages, depending on the size of agency and the volume of documents to be processed. To safeguard customers’ data, Exdion.POD processes all policy documents on a highly scalable and secure Amazon Web Services (AWS) platform. To learn more about the product, a free demo can be scheduled with Exdion’s Insurtech experts on request.