For insurers, every month resembles February in a non Leap Year.  Insurers are under constant fire to meet stringent deadlines imposed by changing regulations, demanding clients, and business in general. Time is a precious commodity.  Too often, managers, staff, and agents rely on adrenaline and organizational skills as they struggle to handle mounting paperwork, comply with regulations, and remain competitive.  In today’s merger and acquisition era, it’s a never-ending battle for survival.  This article explains market drivers for electronic document management (EDM), outlining business challenges insurers need to address.  It also describes unique difficulties faced by large and small insurers so that you can provide appropriate solutions.

Market drivers
Today’s business environment makes EDM a necessity.  Complex regulations, including Sarbanes-Oxley, HIPAA, market conduct exams, and other requirements necessitate detailed information governance planning and recordkeeping. 

Complying is costly, but penalties and consequences of non-compliance can be devastating.  Central, secure access to a company’s digital information and transactions makes business activity transparent.  Clear audit trails demonstrate who reviewed, annotated, or acted upon which information, and when. Quick and unquestionable proof of compliance with policies and regulations within moments of a request saves money —and potentially a company’s reputation.

Like regulatory agencies, customers can be demanding.  Global Internet access has created a generation of people who expect immediate responses, accurate information, and impeccable service.  EDM means insurers can meet and even exceed service expectations, allowing them to compete successfully in a volatile marketplace. 

In today’s 24/7 lifestyle, consumers want to decide when to do business.  Insurers offering Web-based information access, online forms, and other round-the-clock services more easily attract customers and foster loyalty.  An EDM system transports relevant data into customers’ hands, wherever and whenever they need it.  On-demand service is crucial to survival; EDM delivers it.

Expectation and delivery
Whether a carrier employs several thousand staff dispersed across multiple states or a staff of five, many challenges are similar. Although small and large organizations face somewhat different struggles on a daily basis, all are searching for solutions that help them to:

1) Improve efficiency.  EDM eliminates tedious searches for information.  No more misplaced files or paperwork “in progress” on someone’s desk. 

2) Tighten security.  EDM security vastly outperforms that of locked file cabinets.  Companies specify who should access, annotate, or act upon documents based on department, role, or other pre-established criteria. No more security breaches from papers on desks or unlocked cabinets.

3) Access accurate, complete information.  Integrated EDM with online forms puts control over personal data accuracy in customers’ hands.  Rules-based criteria ensure forms meet pre-set standards and are complete.  No more chasing missing information.

4) Contain costs.  Although laws require some documents to be printed, most can be handled electronically.  Companies save storage, postage, copying, and mailroom costs as personnel leave or retire.  No unnecessary expenditures or injuries from transporting heavy boxes of paperwork.

5) Enhance service.  EDM with business process management and workflow tools allows you to automate processes. Actionable files are pushed through pre-established processes based on business rules, which significantly shortens turnaround.  Work stays on target despite vacations, illnesses, or other challenges that typically cause delays.  Staff instantly makes informed decisions.  Waiting times are eliminated.  No more customers disgruntled by long waits.

6) Show ROI.  Web-based imaging delivers quick ROI, often in a year or less.  Information captured upon receipt is instantly available to authorized persons, regardless of location.  Desktop delivery eliminates requesting, searching, and waiting for files; staff skills are put to better use. Storage space is repurposed.  No more wasted space or squandered skills.

Small Insurers
Small firms today struggle to compete.  Although some have embraced imaging, many still wrestle with incoming paper.  Digital capture of incoming documents and electronic forms — and bar codes on outgoing forms that require completion — dramatically reduce paper flow.  They also ensure centralization of mission-critical data from multiple sources. This simplifies retrieval.

Electronic queries and Web forms also assist agent connectivity.  Just as customers expect online convenience, agents prefer working with companies that make their jobs easier.  Digital information presents quicker answers and shortens turnaround times.  It reduces phone, postage, and paperwork-related travel costs, making it convenient to conduct business anytime, anywhere. 

Although system integration is advantageous for small insurers, most lack IT staff and prefer easily managed systems.  Predictably favored are products without a steep learning curve or extensive training.  Web services enabling behind-the-scenes integration with policy management and other standard software facilitate quicker, easier processing.  Vendors should offer strong support and services to address unique needs or customization requests in case they arise.

When working with small insurers, listen for the business “pain” – where inefficiency is greatest – and respond.  A well-chosen EDM solution delivers information efficiently and enables customized service to help smaller companies compete with the giants.  A shortsighted one delivers short-lived results at best.

Large Insurers
Many large companies with departmental EDM solutions are focusing on leveraging it enterprise-wide.  Integrated business systems are vital to communications, and facilitate straight-through (on-the-spot) processing.  Data silos in underwriting, claims, human resources, and finance can be connected behind the scenes using an enterprise EDM approach.  Agent dictation devices, automated calling systems, digital fax capture and electronic signatures add value.  Process automation standardizes processes, pushing actionable information wherever it’s needed.

Large insurers with multiple offices and dispersed files are challenged when asked to respond quickly with accurate, comprehensive information for subpoenas and audits.  Electronic discovery using EDM shortens the search.  Indexed, searchable documents and communications enable detailed reports to authorized parties at a fraction of the cost (and frustration) of manual searches of disparate systems.

Unlike smaller insurers, large insurers have specialized staff who typically handle repetitive procedures.  Speed and accuracy spell success.  Products that offer customizable workspaces raise productivity, delivering data needed for tasks in the most efficient manner for each worker.  EDM suites with workflow management and dashboard tools offer managerial insight into potential system bottlenecks, staff inefficiencies, and other areas crying out for improvement.

Large insurers considering enterprise EDM should start with the business unit that is experiencing the greatest inefficiency, while maintaining a vision for company-wide improvement.  If your client already has a solution, look for opportunities to leverage the legacy and line-of-business systems they own with powerful behind-the-scenes integration tools and enhancements.  Successful companies are looking for the next opportunity to get ahead in a challenging marketplace.  EDM integration is the key. It helps them handle greater volumes while managing compliance and audits without adding people and overhead.

Choosing an EDM provider who meets each of these criteria ends clients’ fears that their company — large or small — might be a guinea pig for an overly ambitious vendor. Solid EDM will help companies leap ahead in business efficiency.  

Laurel Sanders is the Director of Public Relations & Communications for Optical Image Technology, Inc., developers of the DocFinity suite of imaging, document management & workflow products (www.docfinity.com) lsanders@docfinity.com.