The Insurer’s Mailroom: Six Technologies that Reduce Paper and Promote Efficiency

By Laurel Sanders, Optical Image Technology, Inc.

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Most insurance companies’ mailrooms are inundated daily with paper. Applications, claims, supporting documentation, photos, and correspondence create an information deluge. Staff struggle to keep pace with the paper flow, prioritizing time-sensitive materials when possible and ensuring that everyone gets the information they need. As long as documents remain in the mailroom, the goldmine of valuable papers is basically useless.

In today’s business environment, there is no need for the ongoing paper chase. Mature technologies help insurers to gain control over their incoming paperwork, reduce outgoing paper, and work more effectively. Document management tools help you to capture diverse information electronically and keep time-sensitive projects moving. Enterprise content management systems provide real-time data about the business, helping management to make informed decisions more quickly and provide better service. This article describes six distinct technologies that are inherent in a robust document management suite, explaining the role of each in helping you to manage information effectively and ultimately increase your standing in the marketplace.

1. Document scanning: reduce storage requirements by eliminating incoming paper

Insurers face more documentation today than ever before, largely due to the increasing number and severity of legislative requirements. Many spend considerable sums to build, heat, and manage storage space, not to mention staff time wasted while searching for files. Web-based document imaging not only eliminates the need to store the paper; it makes your documents immediately accessible to pre-authorized persons who need them.

Mailroom staff benefits from the comparative ease of scanning and indexing documents directly from the desktop. Thorough indexing that follows the style and preferences of the business makes documentation easy for diverse parties to locate. Security is improved, as the software only permits authorized personnel to access information you have determined they need to see. This makes it easier to demonstrate compliance with regulations. Detailed electronic transaction trails eliminate questions about access, facilitating audits.

2. Bar codes: encrypted information eliminates redundancy and streamlines paper

By encrypting critical data into bar codes that are printed on outgoing forms, you can streamline processing of paper that ultimately flows back into the mailroom. Routine information that is used to identify and categorize mail (name, address, document type, area of coverage, etc.) is read by bar code reading equipment as it reenters the mailroom. It is then categorized and sorted for further processing. This results in several benefits:

It condenses required information into a small space, reducing paper waste.
It eliminates re-keying of completed forms. Instead, they are scanned into the system, indexed, and are available immediately.
It eradicates redundancy and conflicting system data (such as Vitoria and Vicki on two separate forms or an address logged with a suite number on one form, and on another without it), as well as keying errors.

The mailroom staff can process more work, faster, without the backaches that typically result from the constant paper shuffle. Your company benefits from clean, consistent data.

3. Electronic forms: eliminating waste and providing better service

Although online forms are not feasible for every situation or desirable for every customer, they add convenience for your agents, staff, and customers. Customer applications, claim forms, employment applications, and other information can be captured via your Web portal, eliminating costs and delays associated with mailing and shipping paper forms. Electronic data makes information available instantly to those who are preauthorized to view it, streamlining processing times. Automatic indexing of forms can be controlled by customized drop-down menus and extracted from data fields, then verified by mailroom staff. This eliminates manual logging of every form and streamlines mail cart delivery. Agents, customers, and remote staff will rejoice over a 24/7 service that helps them deliver information on time, even if their schedules mean submitting forms in the middle of the night!

4. Importing faxes and emails: electronic capture ends illegible faxes and inaccessible emails

Every insurer has experienced the frustration of illegible faxes, documents with missing pages, or even “ghost” faxes when the machine runs out of ink. Tracking down missing information can be challenging, particularly when the sender is unknown. Emails that contain valuable information, but which are not indexed into a centrally searchable system, can also delay processes and pose difficulties in the event of litigation or court subpoenas. By importing and indexing faxes and emails for storage in a document management system, you gain a more thorough overview of your corporate communications. Furthermore, delays resulting from paper faxes that need to be logged, copied, and routed suddenly vanish.

5. Web-based document management: digital storage enables instant, secure access

One of the greatest advantages of a web-based document management system is the storage of your corporate information in one central, secure, and searchable location. Flexible document management systems also let you point digitally to documents that are stored in other software systems, allowing separate storage with the benefit of easy, centralized access. Regardless of whether a central storage or pointing system is selected, configurable security settings enable administrators to decide who will be permitted to view, annotate, process, sign, or otherwise interact with documents and data that are stored.

Web-based access helps mailroom staff and others to keep tabs on vital business information from any location and keep processes moving. The central storage of paper documents that have been scanned; bar codes that have been read; and your emails, faxes, photos, images, and even voice messages enable you to gain insight into all of the company’s transactions that you are permitted to view. Digital audit trails make it clear who has accessed and acted upon files at what time, making it easier for you to demonstrate compliance with policies and regulations should an audit occur. Mailroom staff can transition effectively to managing a digital mailroom that is more efficient, contributing substantially to their company’s ability to remain competitive.

6. Electronic workflow: digital processing shortens turnaround times

Companies that have a document management system in place dramatically increase productivity and the quality of service they can offer when they add digital workflow.

By streamlining and automating routine processes - particularly in claims, underwriting, human resources, and accounting – tasks and related documents are forwarded to the right people for the required actions in a timely manner. Time-sensitive documents no longer are subject to costly penalties for late processing, and are routed as priority items or re-routed as necessary to ensure timely completion.

A flexible workflow system allows you to establish comprehensive rules that govern how work will be distributed. The system can be set to prioritize tasks and designate the time that staff is allotted to complete each step, sending alerts if bottlenecks are looming. It also lets you prescribe document routing in the event of staff illness or absence, and specify how exceptions to standard processes should be handled. Specific events (such as the receipt of an approved or denied claim) can be used to automatically trigger emails to members of staff or generate a customized letter or automated call. Integration of workflow with your line-of-business system means the mailroom scanning and other forms of capture can link documents with critical business processes, driving productivity and improving communication across the enterprise. Management gains real-time insights into business transactions, departmental and individual productivity, and other information that provides critical insight for business decisions. Simply stated, work flows onward in sequence and on time, eliminating delays that are typically associated in a paper environment with staff absences, work overload, or searching for files in transit.

Getting started with document management

Whether you represent a large insurer with thousands of employees or a small company with a handful of staff, your mailroom can benefit from the mature technologies available in the marketplace today. If your paper-based business is struggling to keep pace, or you already have an imaging system and are searching for ways to increase efficiency and productivity, an integrated document management and workflow software system can help. Several tips will get your executive team started on the right path:

Encourage management to assess the needs of your company from top to bottom, and to understand all of the organizational processes within your company. This will ensure that your vendor provides a comprehensive solution that will address everyone’s needs and maximize enterprise-wide efficiency.
As you evaluate vendors, consider your short- and long-term requirements, and communicate both to your vendor.
Consider vendors whose products are scalable, can integrate with your line-of-business software, and who offer professional services such as workflow design and disaster recovery in case you require them now or in the future.

With a solid understanding of your needs, open communication with your staff and vendors, and scalable products and services that help you maximize the investments you have already made, your company and its mailroom are on the path to digital success.

Optical Image Technology offers a complete line of document management and workflow software. Regardless of whether you represent a small business or a large enterprise, we can help you to address your business needs effectively and compete more successfully in the marketplace. To learn more, please visit our website at www.docfinity.com, call 814.238.0038, or email info@docfinity.com.

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