Insurance companies face unique problems in improving profitability. The industry is traditionally one that generates large volumes of paper documents, and one that relies heavily on computer applications. Policy documents are often printed as booklets. Paper forms are an integral part of the claims and claim-processing procedures.
Insurance companies are now recognizing that switching to electronic document management can equal big savings, and this year we will see companies exploit this technology on a larger scale. Using Cloud applications will greatly reduce the amount of paper used, money spent, and effort used to keep everything in its proper place.
Secure Document Storage
Because insurance companies all have to adhere to strict data protection procedures, secure document storage is essential. Clients offer their insurance companies extremely sensitive data when making a claim or taking out a new insurance policy. These companies are required to keep this information safe. Ensuring that data is secure helps insurance companies protect themselves as well as their clients.
The risk of sensitive information getting lost is greatly reduced if documents are scanned and then stored in encrypted, electronic databases. Workflow processes can use electronic copies of any document instead of hard copies, saving both time and money. Storing only one physical copy of a document reduces the chances of that document being seen by unauthorized individuals.
Document Management
Storing physical documents not only poses security risks; it also requires significant physical storage space, security overheads, and dedicated staff to manage storage and retrieval. Manual systems are slow, costly, and inefficient.
In contrast, electronic document storage requires virtually no physical space, and documents can be retrieved instantly. Files are less likely to get lost or be misfiled, and they can be searched in seconds rather than minutes or hours.
Cloud Computing
Insurance companies are increasingly moving to Cloud computing to reduce costs. They are using dedicated Cloud services to safely store electronic documents on highly secured servers.
Additionally, the companies that move to Cloud computing benefit from being able to reduce their overhead on hardware. They no longer need to buy expensive servers or buy and manage server software.
By switching to Cloud services, companies drastically cut down on all the costs involved in internally supporting their IT infrastructure. This frees up physical space, streamlines IT management, and increases productivity in every department.
Paperless Office
This year the insurance industry will make great strides towards reducing their reliance on paper. There are several ways that companies are moving toward paperless offices. When using electronic document management, insurance companies can share documents and forms with those who need them. Since the files are encrypted and secure, only those who have the required permissions are able to view documents.
In addition, insurance companies are able to go paperless with clients. Whether you’re emailing statements or allowing clients to update information online, going paperless increases efficiency. When you take your office paperless, you’re becoming more efficient.