Automatic verification and approval of premium invoices
Insurance policies and their premiums vary greatly. On the one hand, this has to do with the numerous insurance policies from which one can (or must) choose and the type of insurance, for example car, household or life insurance. On the other hand, it also has to do with the personal factors of the person to be insured. Which insurance do I need at all and which is the best for me? Having to personally deal with these questions is an evil that most would like to avoid. Fortunately, this can be achieved with an insurance broker who acts as a trustee for clients. He knows how to navigate unerringly in the pool of numerous insurance companies, which is difficult for the layman to see through. As the link between insurance companies and customers, the broker is always keen to maintain the best possible relationship with both. Insurance companies, on the other hand, ultimately set the rules, i.e. what is reflected as conditions in the policies. For insurance companies, two main factors are central to the processing of policy invoices: Automatic verification and, if there is a match, automatic release of the policy invoices to the customer for payment. Read this article to find out how this is put into practice with intelligent, AI-based OCR (Optical Character Recognition).
Insurance companies make promises that you pay for (sometimes compulsorily, sometimes voluntarily). As long as nothing happens, taking out insurance is little more than theory and thus not nearly as tangible as buying a new smartphone, for example. And yet insurance is at least as important as the latest craze in the smartphone market. At the heart of every insurance policy taken out is the policy. It serves as confirmation of the contractual relationship between the insurance company and the policyholder. The insurance broker selects the best and most favorable policy for the customer from the insurance pool. It is not uncommon for changes and thus adjustments to be made, which of course means that the amount of the bill is different from that of the year before. The policy may be adjusted to the general index level and additionally, to the personal situation of a customer, which changes the invoice amount of the premium invoice. The car insurance or rather the premium will most likely change in the near future, if a customer switches from a Smart car to a Dodge Ram 1500 and due to the sheer size of the thing several parking damages have occurred in the current year. Or the premium invoice of the homeowner’s insurance will be different, when moving from the 1-bedroom apartment to a 4-bedroom loft with four times as expensive inventory including Steinway & Sons grand piano and designer fitted carpet.
Leverage intelligent, AI-based OCR
To eliminate the need for an insurance company to manually check whether adjustments are needed to a policy, this check is automated. In order to use the database of all insurance policies as seamlessly as possible, intelligent, AI-based OCR (Optical Character Recognition) is used for this purpose. OCR extracts all the relevant data from the policy invoice, including not only the usual suspects, such as the invoicing party and recipient, date and invoice amount, which need to be read from an invoice, but also, above all, the policy number and what type of insurance it is, for example, “Policy No. 1243-6789, household insurance”. With this data and with the help of intelligent, AI-based OCR, which automatically compares and checks the customer’s current insurance premiums and policies with those from last year in the database, an enormous amount of time resources are saved. But that’s not the end of the story. In the next step, if the policy and thus the invoice amount match those of last year, the automatic invoice release of the premium to the customer takes place. If something has changed, as in the examples of car or home insurance, an automatic note is sent to the responsible employee for a manual follow-up check instead, and the invoice is not released to the customer for the time being.
The automatic extraction of relevant data in insurance policies by intelligent OCR enables insurance companies to transform previously lengthy and tedious processes into efficient ones and to automatically check and release premium invoices. This advanced approach ensures that customers receive the best possible advice.