Electronic Filing Cabinet Syndrome (And How To Avoid It!)
By James Thumma, VP of Sales and Marketing, Optical Image Technology, Inc.
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The insurance industry has historically been extremely paper intensive. Reports and applications, certification of damages, risk assessment, validation, eligibility determination, pricing, quoting, rating, and policy recommendation are, by definition, time-consuming processes. Paper processing has traditionally culminated in long delays, storage difficulties, lost or misplaced files, inefficiencies, errors, and even payments of unnecessary claims.
To address this challenge, many insurers consider adopting electronic imaging and storage software to reduce their paper. The rationale is that such a transition will enable them to virtually eliminate their mountains of paper along with their associated filing cabinets. They assume that the installation of an electronic storage system alone will give them the ability to access files with a few clicks of a mouse, and that they will no longer have to worry about lost or misplaced documents. Paper, forms, and faxes will be stored electronically.
But are they considering the big picture? For insurers, eliminating paper within the organization is a lofty goal; but what seems like a step in the right direction may be in the long run a step backwards. When an organization is unencumbered by paper, one might logically assume that it is leveraging its technology investment to its fullest potential. Nothing could be further from the truth. By itself, an electronic imaging and storage solution is nothing more than an electronic version of a filing cabinet—as static, unproductive, and inefficient as the metal version.
Gaining a competitive advantage with a Web-based system
To avoid the pitfalls associated with the electronic filing cabinet syndrome, insurers would do well to consider a true electronic document management (EDM) system coupled with automated workflow. EDM differs from a rudimentary imaging and storage solution in that it is active rather than passive. It is web-based, providing document access to authorized agents, customer service representatives, and even policyholders from any Internet browser.
EDM provides a means to not only centralize information, but to manage it and integrate it into insurance business processes. When coupled with workflow software, businesses have the ability to electronically route information and to automate tasks. With workflow software, insurers whose business is subject to different states’ laws can electronically sort information according to the state in which policyholders reside. Other insurers create online forms that can be electronically routed to the appropriate personnel for processing. Underwriting departments typically are able to reduce their processing time of new policies from weeks to days with workflow.
Workflow: Making information dynamic
Robust workflow software has the capability to integrate and communicate with other disparate systems. One insurer integrates workflow with an automated calling system to process returned mail, enabling the company to track customer information quickly, accurately, and cost-effectively. Workflow software gets the right information to the right person at the right time, eliminating the file shuffling that is so prevalent in paper-based systems. This automated processing reduces errors and increases accuracy to help improve operations.
An accomplished workflow system has the ability to accommodate for users’ vacations and absences, setting up workflow distributions by user and by job position. Some workflow systems can also be configured to re-route work to a backup user or group of users automatically when the original user is unavailable. Insurers who have implemented EDM with workflow experience unparalleled improvements in efficiency and turnaround time. They are often are able to double their claims processing load without increasing staff.
Advantages of an EDM and workflow system over a simple storage reservoir
The insurance process is fraught with complexity and diverse participants, each with their own roles in an intricate chain of procedures. Frequently, separate departments that make up the insurance equation have difficulty communicating and accessing information from other departments. Depending on the roles that people play within the insurance equation, end users often have different software environments with which they are familiar.
EDM software electronically integrates these different environments, allowing users to access information from other departments through the computer interfaces with which they are familiar. Policy management, agency support, loan processing, billing, claims processing, underwriting support, and other operations are accessible with a few keystrokes to authorized agents throughout the enterprise. Policies can even be accessed simultaneously from different departments. Policy changes can be made quickly and efficiently, and consistent quotes can be delivered in real time. Online quote request forms and records can be uploaded and launched into automated workflows. With EDM, agents and support personnel have immediate access to policyholder information regardless of an account’s status, dramatically improving customer service.
A passive electronic filing cabinet has none of the active abilities of an EDM/workflow system. Although it eliminates paper, it does not provide powerful search, indexing, or querying tools that EDM software offers. It does not provide the ability for users to immediately access specific pages of documents without clicking through cumbersome electronic files. It does not leverage your investment in your legacy applications, and it most certainly does not allow your organization to move forward with advances in technology. And let’s face it…the last thing that your end users need is another information silo through which to navigate.
How to incorporate EDM and workflow into your insurance practice
The process of finding a vendor whose services match your company’s needs can sometimes seem overwhelming. Evaluate vendors who have experience in the insurance industry and are willing to work with you to understand your specific business processes. Some questions that you should ask prospective vendors are included below:
- Does a prospective vendor offer the capability to integrate legacy systems?
- Does the software that you are considering offer you the ability to seamlessly integrate with your current line of business applications, allowing your end users to stay in their familiar software environments?
- Does a vendor offer a realistic price point, as well as different modules that can enhance diverse aspects of your business processes?
- Does the prospective vendor offer a robust workflow product with the flexibility to integrate with different applications throughout your enterprise?
- Are the products scalable to assist your company as it grows?
Your end users probably do not have time to learn how to use new software interfaces. When incorporating EDM and workflow, consider a vendor whose software works behind the scenes. The products should provide robust functionality while still allowing your users to work in the environments with which they are familiar. Regardless of whether they work in claims, underwriting, remittance, accounting, customer service, or other departments, your users should be able to electronically store, access, and route records, invoices, emails, forms, and other information with a simple click of a mouse.
Instant access to information, regardless of the status of an application or policy, gives customer service representatives the ability to provide stellar assistance without having to learn how to use additional software. With EDM and workflow, productivity levels increase throughout your enterprise, and your computer systems—even your legacy systems—are leveraged to grow as your organization expands.
To find out more about how EDM and workflow can help your company reduce turnaround time and gain a competitive edge, please contact Optical Image Technology (http://www.docfinity.com) at 814.238.0038 or email info@docfinity.com.
©2006 Optical Image Technology, Inc. All rights reserved. DocFinity, IntraVIEWER, and XML FormFLOW are trademarks or registered trademarks of Optical Image Technology, Inc.
