3 Ways AI Can Speed Up Policy Checking for Insurance Brokers & Carriers

Artificial Intelligence - September 24 2019

KPMG predicts that over the next few years customer satisfaction and retention will be a more relevant performance indicator than operational efficiency, so how can insurance brokers and carriers deliver a better customer experience?

In a crowded market of incumbents and new market entrants, there is no room for complacency. Brokers and carriers need to identify ways to distinguish themselves from their competitors, embrace technology and strengthen customer relationships.

Embracing innovation to digitally transform traditional processes like policy checking presents an opportunity for brokers and carriers to exponentially improve the customer experience. Digital experiences delivered by Amazon and others have heightened customer expectations, forcing insurance brokers and carriers to follow suit or lose out to competitors who can deliver faster accurate insurance policies. 

It’s time to ditch the manual labor-intensive policy checking process that takes skilled knowledge workers hours and days to complete. It’s no longer cool to review insurance policies word for word, checking pages and pages of policy language and supporting documents by hand. Nor is outsourcing policy checking to a service bureau the answer as this approach adds operational overhead, management and costs. Today, the process is time-consuming and prone to human error. Not to mention risky as often coverages, limits and endorsements are overlooked, resulting in costly errors and omissions. 

In a press briefing in Toronto early this year, Zurich Canada CEO Saad Mered said, “Often commercial policies have dozens of pages with several endorsements, which someone needs to read for accuracy before the policy is issued to the customer. Someone needs to confirm, for example, that all references in a policy and its endorsements to insured address, deductibles and sub-limits are correct."

Here are three ways artificial intelligence can digitally transform the efficiency of policy checking:

1. Automate and Standardize

Digitizing the verification of policies increases operational efficiencies, eliminates costly errors and omissions and improves customer satisfaction.

Major gains in efficiency can be made as skilled knowledge workers are no longer required to toggle between screens to compare pages and pages of policy language with a source of truth to identify and flag discrepancies in limits, deductibles, etc. With AI, the process of policy checking is super fast taking minutes as opposed to hours and it eliminates the risk of inconsistent policies. Using a standard or customized on-screen policy checklist, uploading policies and seeing results appear on-screen within minutes, greatly reduces the policy checking time.

Brokers can streamline and simplify the quote-to-bind process by deploying AI to automatically compare expiring policies, quotes and more with new policies to quickly and accurately identify errors and omissions in milliseconds.

“Quite often, they have to open up three or four screens and compare and contrast visually with their eyes. And you know what happens after page 52. Your eyes get tired and with the best of intentions, people still miss things,” said Zurich Canada CEO Saad Mered.

PwC notes that when consumers interact with insurers, they are not just comparing one carrier with another, they are comparing insurers with a wide range of online retailers and service providers, elevating their expectations for fast and intuitive service. Insurance carriers and brokers who up their game with AI will meet this new mindset.

2. Improve Contract Certainty

Although speed and responding to customers in a timely manner is important, giving customers peace of mind that their policy is accurate and free of inconsistencies is critical. Customers expect that carriers underwriting the risk and brokers securing their business are ensuring their best interests are being protected. Fostering and maintaining customer trust is essential to establish long-term customer relationships and retention.

Giving underwriters access to tools to automate the policy check process for various lines of business such as directors and officers liability, E&O, cyber, crime, inland marine, commercial auto, commercial property, and BOP, to name a few, helps eliminate the need for them to painstakingly read every word of a policy to confirm that things like names, data, coverage, limits and dollar amounts are consistent with what the client, broker and insured intended.

Be the carrier that brokers can count on for fast, accurate quotes. Secure more future submissions and increase gross written premiums by providing accurate quotes and policies to your distributors.

3. Permit Scalability without Boosting FTE Costs

Time is not a renewable resource. Skilled knowledge workers can only humanly check a specific number of policies a day. On average, a policy checker can review about 2,000 policies a year. If they are actively employed for 25 years, that means they will have reviewed or checked approximately 50,000 policies. With artificial intelligence, in one year, a machine can review half a million policies, which equates to 100 years worth of human effort. AI enables insurance brokers and carriers to expand their workload without adding staff, allowing them to do more with the same headcount.

By giving underwriters the tools to automate tasks like policy checking, they can focus their attention on nurturing broker relationships, advice giving, understanding, negotiating, listening and more strategic initiatives for the company.

Artificial intelligence for insurance has the power to drive operational efficiency, cut costs, and increase employee satisfaction – all while delivering a better customer experience that includes fast responses, accuracy and peace of mind.

Ready to mitigate your risk of E&O exposure & guarantee contract validity?

Schedule a demo of Policy Check or download the data sheet Policy Check for Brokers or Policy Check for Carriers to see how you can transform your existing processes to optimize your customers’ experience, boost operational efficiencies, and improve employee satisfaction.



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