An insurance company issued a client an insurance policy that included blanket coverage for multiple commercial properties. A fire broke out at one of the properties, resulting in a financial loss that exceeded the insurance limits. The client had requested policy coverage per property, which was not changed in the final policy. The client sued the broker for misrepresentation and claimed compensation for the loss.
Put yourself in the shoes of this company. Your company would suffer a huge revenue loss, a severe blow to its reputation and higher customer attrition rates.
If you want to avoid such slips and gaps, an intelligent policy checking process is the prime solution. Let us understand the process of policy checking and its challenges.
Policy Checking Process Explained
Policy checking is a process in which each policy is thoroughly reviewed to weed out errors and identify missing data. This phase is vital for minimizing policy mistakes and oversight to prevent denial of a claim or subsequent disputes and conflicts.
Policy checking is a time-intensive process that may get pushed to the backseat when there is a higher volume of policies. If policy checking is done ineffectively, flaws and inconsistencies in the document may end up going undetected. This frequently results in disagreements, client claims being rejected, or even E&O claims. It is a lose-lose situation where the client could lose the claim and the insurer could lose their clients.
These are some important steps to be included in the policy checking process:
- Customer information must be validated, and the policy must be checked for missing or incorrect information. Often, the error could be as simple as a spelling mistake, or an address entered incorrectly.
- The next step involves looking for discrepancies between the quote, proposal, and the policy.
- The policy document is also examined to ensure that the coverage information is accurate. This includes any requests for inclusions made by the customer.
- The policy checker must investigate the missing factors in the premium. The policy is also compared to the previous year's document for any changes in wording that may affect coverage and exposure.
- A final scan is performed once the policy is received from the underwriter. This ensures that any changes requested by the client have been evaluated for inclusion and accommodated appropriately. The customer is then given the final policy.
Challenges of Policy Checking
If policy checking is so vital, then why does it get skipped? The reason lies in some of the challenges posed by the process:
- As the insurance policies involve complex clauses, only trained professionals will be able to review them. This makes the process more expensive.
- Since most of policy checking is done manually, it becomes time-consuming and error prone.
- More policies need to be checked in a shorter time frame, leading to a decline in productivity.
- Since the insurance industry involves huge amounts of data to be dealt with, most of the data is unstructured, resulting in data loss.
These challenges of policy checking frequently stymie insurance agencies, negatively impacting their revenue, time and efficiency. Consider a case study to better understand the impact of these challenges and a possible solution to avoid falling into such growth traps.
The HNI and Exdion Partnership: A Case Study
HNI Risk Services LLC has helped companies de-risk their business by guiding them to reduce their insurance dependency. As a result, policy checking has formed a big part of their operations. However, due to manual policy checking, HNI was experiencing inaccuracies and a slow turnaround time. They exceeded their internal compliance benchmark by 30 days and were in dire need of a smart solution that could evolve with business needs and solve their challenges.
The Panacea to Erroneous Policy Checking- Exdion
There is an innovative solution to all these challenges- automation. Exdion, a pioneer in the insurtech industry, partnered with HNI to implement automation for policy checking. Exdion Policy Check makes policy checking more accurate, faster, and less resource intensive by leveraging technologies such as artificial intelligence and machine learning.
Leveraging Exdion Policy Check, the client reaped the following benefits:
- Exdion collaborated with the HNI team to ensure a smooth transition to the automated system. As a result, HNI's productivity and savings increased.
- HNI achieved a 95–98% accuracy rate in their policy checking process.
- In the past, CSRs would take anywhere between 60 to 90 minutes to manually check a policy. Exdion Policy Check helped reduce transaction time per policy to 10 minutes.
- Exdion Policy Check caused up to 30% cost savings.
- Greater control over E&O claims and higher productivity levels ensured a better client experience for HNI clients.
If you want to know how Exdion walked HNI through the complete transformation process, hop on over to our case study.
Enhance your Policy Checking Process with Exdion
Exdion is a leader in automation services and has partnered with various companies to make policy checking smooth and hassle-free. With our cutting-edge AI-powered products, we promise greater speed, accuracy and cost-efficiency. The automation tools we deploy help our clients mitigate risks and achieve higher customer satisfaction and superior performance.
We offer sophisticated insurtech solutions using Artificial Intelligence (AL), Machine Learning (ML), Natural Language Processing (NLP) and various automation techniques. Exdion addresses the pains of manual processing and inefficient outsourcing by enabling brokers to automate and integrate their disparate systems and adopt disruptive technologies successfully.
Get in touch with us today.