Using Barcodes to Improve Insurance Processes

By Scott “DJ” Wilson, CDIA+, Implementation Analyst, Optical Image Technology

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In order to remain competitive, insurers must regularly examine their processing abilities and pinpoint ways in which efficiency could be increased. One claims processor whose business was still paper-based conducted periodic internal audits. As part of its self-evaluation, this company attempted to locate twelve randomly-selected records that were in various stages of processing. The company was dismayed to discover that it took 22 people more than 200 hours to complete the task.

Your organization may not have experienced such a dramatic epiphany, but chances are that there is room for improvement with respect to your processing efficiency. If you have recently transitioned from paper processes to ECM, one area of enhancement that is worthy of consideration is the implementation of data capture, such as barcode recognition technology. The technology involves data that is read from barcodes on associated documents as they are scanned. The barcode data is read either by scanners or software, and the data is used for indexing purposes.

Throughout the insurance industry, barcodes offer many benefits. They can help expedite backfile conversions, improve processing of current documents, and even initiate electronic workflow processes. When your document management software has the ability to integrate with your claims management system, you can be assured that indexing is always accurate and up-to-date. Bar codes can ensure that new business correspondence is associated with a policy number. Retrieval is dramatically improved, and the return on investment (ROI) is typically realized in very little time. Implementation of barcode technology usually results in the ability to process more work without adding staff.

Barcoding offers greater processing speed, accuracy, and consistency. By using barcodes to populate indexing values, users do not have to manually enter data. This increases processing speed. Data that is entered automatically is much less likely to be entered incorrectly, which increases reliability and accuracy. In addition, data read from the barcodes—such as policyholder names—will be entered in a consistent format. An investment in barcode technology pays dividends by offering more consistent and efficient retrievals, which translates into improved customer service.

Reducing the need for manual indexing

It is not uncommon for insurers to use applications developed inhouse to perform processing functions. They can use these applications to build barcode sheets that contain specific account information. After a barcode sheet is created, it is attached to a document. It can then be scanned and processed by the barcode server, and automatically indexed with account information. Usually, this operation is supervised; after account information is populated, users verify that all of the information is complete. Some barcode server applications have advanced capabilities, and offer automated options such as barcode pages that automatically populate the required data into indexing criteria. This eliminates the need for manual indexing and verification altogether.

Simple applications for barcodes

Many insurers get started with barcodes by using them as part of their backfile conversion process. As they scan their older files into their electronic repository, they use barcode sheets as basic separator pages. Adding barcode pages to the documents adds a few seconds to the document preparation time, but this practice is a significant time-saver, as it allows users to load multiple documents into a scanner’s document feeder simultaneously. This is a case of barcode usage in its simplest form, and still requires users to index the individual documents manually. The barcodes on the separator pages are generic in nature and contain no specific information.

Additional Capabilities

In a more sophisticated application, an insurer might have to scan a series of policies with several document types per policy (such as the original application, supporting documentation, and miscellaneous correspondence). Barcode sheets containing one or more barcodes can act as both separators and differentiators of document types among policies. As such, multiple document types could be scanned in large batches with minimal human intervention. As new document types are scanned, barcodes are used to indicate the change in document type.

Stacks of barcode sheets can be kept on hand for the document preparation process, which eliminates the need to customize the barcode sheets. General information (such as the document types) can be placed on the barcodes, while specific policy is left off of the barcode for manual indexing at a later time. When the indexing is done, users need only to enter the specific data. The general data, such as document type, is already in place and does not have to be entered manually. And if data lookups from database sources are also used, it is possible to have a user manually enter one piece of information (such as a policy number), and trigger the system to automatically populate several other pieces of specific information (such as name, address, and effective date).

Advanced applications: coupling barcodes with workflow

To truly get the most out of barcode technology, consider pairing it with workflow. Barcodes can serve as a trigger to initiate automated processes. Any time you mail a correspondence to a policyholder, you can affix a barcode to the mailing that is to be returned. Upon receipt, it can be electronically routed for processing to the proper department when the document is scanned. The correspondence has policyholder information and document type information encoded within the barcode, which eliminates the need for human intervention in that part of the processing cycle.

Online forms can be processed in a similar manner. When customers print insurance forms for signing and mailing, barcodes on the forms can encode customer and document information that associates the form with an existing customer record. The barcode ensures that upon the receipt of the document, the document can be electronically routed to the proper department for processing.

Some insurers use barcodes in conjunction with workflow to trigger personalized letters or automated telephone calls in response to returned mail. To start the process, barcodes from returned envelopes are scanned. The data from the barcodes is updated in the database, which can then trigger additional communication—either phone calls or letters to customers—requesting new address information. The automated process typically generates a high rate of success. Responses are often more prompt and accurate in comparison with a typical manual calling system. When barcodes are used with workflow to trigger an automated response system, organizations are able to process more work with their existing staff. At the same time, insurers dramatically improve turnaround time, which can translate to more efficient customer service to their policyholders.

Conclusion

When was the last time that your organization performed a self-evaluation? Are there areas that could benefit from automation? If so, barcodes can be a catalyst that you can use to implement those benefits. Clearly, barcodes expedite front-end processing by improving scanning and indexing methods. They also help in the back end with retrieval processes. Barcoding can minimize or even eliminate the need for manual indexing. By reducing manual data entry, barcodes increase accuracy, and reduce the risk of human error. They cut down on misspellings and ensure that information is entered in an accurate, consistent manner. Productivity is enhanced as well. Even in cases where users still have to manually enter some information, barcodes allow insurers to significantly improve their turnaround time.

Any time that you can reduce manual processes such as logging, data entry, sorting, and routing, you can decrease errors and improve your processing abilities, thereby increasing overall productivity. Periodic self-evaluation has helped many insurers increase their competitive standing. It gives them a better idea of exactly what they are hoping to accomplish with their processing, and how technology can fit into that equation. By identifying their goals and by examining exactly what information has to be submitted from a third party, insurers can find ways to simplify and expedite their processing abilities. Staff is happier with the reduction in mundane tasks; policyholder retention is improved; and the speed of service is improved significantly.

For information about Optical Image Technology’s DocFinity® suite of enterprise workflow and document management software and services, please visit our website at www.docfinity.com, call 814.238.0038, or email us at info@docfinity.com.