Using Your ECM System to Simplify Financial and Market Conduct Examinations

By Optical Image Technology

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Over the years, insurance companies have looked to enterprise content management (ECM) in an effort to optimize claims, underwriting, and other processes. ECM, with its ability to manage supporting documents, capture customer policies, and assist insurers with their efforts to minimize paper, has provided significant enhancements to the insurance industry as a whole. Processes that were formerly paper-intensive have been made much more efficient. Automation, electronic routing, and immediate access to information have shortened turnaround time and given insurers a competitive edge. ECM also helps organizations cut costs when they are able to use it on their administrative side to manage employee personnel records and other back-office processes. A truly versatile software system will enable organizations to implement ECM technology throughout their entire enterprise.

Insurers have a tremendous opportunity to leverage their ECM investment—and to save substantial funds and resources—by using their existing ECM system to manage requirements that are associated with financial and market conduct examinations. Most organizations initially purchase their ECM software to address a business-critical problem. However, once the technology is in place, simple logic dictates that it makes sense to get the best possible return on your investment—particularly when it doesn’t involve additional costs. By using your existing system to address Insurance Department exams, you can also build a foundation to address requirements that will undoubtedly become more exhaustive (and expensive) in the future.

Organizing information so that it is readily available

Obviously, it is advantageous to have all of your records available immediately when you are in the process of an Insurance Department exam. Per Diem charges can accumulate rapidly for organizations that are unable to produce the required information in a timely manner. The examinations, which are complicated and time-consuming under the best of circumstances, can be prolonged considerably for organizations whose processes are still driven by paper. Failure to produce Ledgers and Schedules, Contracts, Licensing Records, Audit Reports, Claims Files, Consumer Complaints, Minutes, Memorandums, By-laws, and a myriad of other records can result in criticisms and citations.

By leveraging your ECM system to organize information that is related to financial and market conduct exams, you can save significant time, money, and effort. The appropriate records and documents can be indexed and stored in a manner that ensures that they are available at the click of a mouse. Best of all, using your existing ECM system to address Insurance Department exams doesn’t cost a thing. Your system can be configured to provide the documentation that you need—when you need it.

Establish controls to minimize the potential for human error

Organizations need to be able to store critical records securely, and to be assured that they can produce records when they are required. An ECM system can ensure that accessibility. At the same time, it can provide even greater benefits. ECM gives organizations the ability to automate their retention and destruction schedules. Automation removes the potential for human error and ensures that records will not be destroyed prematurely. It also provides organizations with a system that can be configured to purge materials at the end of the document lifecycle. This guarantees that they will not be storing materials long after the retention requirement period has expired. As a result, organizations can be assured that documents and records can be produced immediately upon demand as part of their Insurance Department exams.

For procedures such as reconciliations, automated workflow can help to establish controls by dictating the path that a process will take. It can also offer the documentation to prove that this path is followed consistently. Reconciliations are automatically routed for assessment, and reviewers sign off on their review. Workflow provides the security to guarantee that the right people are seeing the right information and signing off after tasks are completed. Audit trails provide incontrovertible evidence that controls are in place and are being followed.

Using ECM to demonstrate information governance

In the big picture, the scope of the Financial and Market Conduct Examinations goes beyond an organization’s ability to produce specific records and documents on demand. Ultimately, the Insurance Department wants to determine whether organizations have implemented far-reaching information governance policies. Does your organization have strategies and practices in place to protect and manage your corporate information—both for your customers and employees? If so, your ECM system and the data protection measures that you have implemented will help you to demonstrate compliance with industry standards.

By automating processes, insurers can demonstrate that they have enacted regimented courses of action and that they are following the established procedures. Digital workflow provides strict controls with respect to these processes, guaranteeing that they are performed in a designated manner. Common sense dictates that it is not enough to have good intentions regarding your information governance strategies. You need to be able to prove that your intentions have been implemented—and followed—throughout your entire enterprise. Audit trails provide confirmation that organizations are employing accountability measures throughout their processes, and supply proof that governance measures have been implemented. Furthermore, reports can demonstrate to inspectors, auditors, customers, and other outside parties that controls are in place (and are working) to ensure compliance with regulations.

Getting the most out of your ECM system

Typical driving factors that influence the initial purchase of an ECM system might include inefficiencies associated with paper processes and lack of instant access to information. Once the system is implemented, however, there are no limits as to what it can do. ECM provides a number of benefits that can optimize insurance processes, such as automation, instant access, and disaster recovery options. To truly get the most out of your ECM system, ask yourself what it can do to optimize other areas of your business. Are you using your system to make your administrative operations run as efficiently as possible? Are you leveraging the value of stored data across your enterprise? Are you configuring your system to serve as a foundation for your information governance strategy? Paperless processing is a good starting point for your system. Once the system is in place, however, there are no limits to its potential.

Like it or not, Insurance Department exams are a reality of this industry. Chances are that they are only going to get more complicated in the years to come. By taking a proactive approach with your existing technology, you can establish a foundation that will ease future exams and at the same time, give your organization a better understanding of existing procedures. The beauty of having an ECM system lies in its ability to improve processes throughout your entire organization—even if its specific applications are not immediately apparent. Talk with your vendor for suggestions about how you can get the most out of your system. Consider using ECM to demonstrate accountability, minimize costs, and significantly shorten the duration of your exams.

 

To learn more about how DocFinity document management and workflow software can help you simplify Insurance Department exams, please contact Optical Image Technology (http://www.docfinity.com) at 814.238.0038 or email info@docfinity.com.

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