Simply put, an Electronic Document Management System (EDMS)replaces paper files and documents in an office and enables usersto send electronic documents through the same steps a paperdocument or file would follow. An EDMS is primarily used toincrease efficiency and eliminate costly inconsistencies common ina paper-based process.

For instance, each new policy application most likely needs tobe processed by multiple individuals before it is returned to thefiling cabinet. A true EDMS not only provides storage, but mustprovide the same workflow capabilities. Along the way, it must alsoprotect documents so that only authorized people can view, editand/or delete them based on the individual's access rights.

An example might be a client's claim records. These recordsshould be kept confidential and an audit trail kept of all access.The EDMS must be easy and straightforward to use and ideallyintegrate with other applications the office is already using withminimum effort.

Agents need to be as efficient as possible when dealing withclients and their associated paperwork and an EDMS can help acompany streamline the document flow throughout the office. Beloware the five most common ways an EDMS can help generate moreprofitability in an insurance agency.

No. 1: Instant Access

One of the largest benefits to using an EDMS is the ability toaccess documents (policies, claims, etc.) at any time, fromanywhere. No more running back and forth to the file cabinet orasking an assistant to track down a relevant document. Think of thetime savings that can be felt across the agency when it only takesseconds to find a policy.

With instant access, two users can work in the same client'sfile simultaneously and have access to all relevant documentation.For example, an agent in the field can reference a client's policydocuments while an assistant works on processing a claim—using anEDMS allows multiple people to access to all of the documents atany time.

A web interface adds another layer of accessibility by allowingthe user to look up documents from any computer, anywhere. There isno longer a need to make copies of and carry around briefcases fullof policy documents.

If a client calls after hours or while a user is out of theoffice, documents can still be accessed and discussed on the spot.This secure and instant access of documents saves huge amounts oftime and cuts down on call backs to clients as the documents can bepulled up while talking to the client on the phone.

No. 2: Electronic Workflow

Whether document workflow consists of processing client, staff,or vendor/provider documents and email, workflow occurs everysingle day. Realizing how often document workflow occurs each day,one begins to consider ways to improve and streamline the documentworkflow process so as to maximize time and cost savings.

The easiest way to implement electronic workflow is to select asoftware package that can mimic the way documents are currentlyrouted physically. For instance, there could be a new policyworkflow that follows a specific path. Similarly there could be aclaims processing rule that has specific steps each claim must gothrough. Each of these steps should be audited by the EDMS toprovide a method of seeing who used the documents.

No. 3: Search and RetrievalCapabilities

Most agencies store policy documents across three or fourseparate locations: centralized paper-based file cabinets, papersin an employee's desk, folders on shared server drives, and localdesktop hard drives.

As a result, multiple searches are often required when the exactlocation of a document is unknown. This is especially true when theperson who created or filed the document is unavailable. Mostcompanies try to centralize all filing to a single file room and aserver, eliminating storing of business documents on local harddrives and file cabinets in people's offices. This is usually thefirst step toward making the transition to an EDMS.

There are a variety of ways to search for electronic documents.Most EDMS use one or more of the following:

• Structural Search

Structural search is the method most closely related to the filecabinet/file folder approach because it relies on a consistent,hierarchical and controlled structure for storing documents. Thebest systems are able to emulate the physical filing world to makethe transition to an EDMS more seamless for people who areaccustomed to working with file cabinets, folders, index tabs,documents and even paper-clipped or stapled documents. Now, anassistant can log into the EDMS, select a particular cabinet, findand open a file, identify the required policy document and evenemail, fax or print the document to the client while they are onthe phone.

• Keyword and Document Title Search

An EDMS allows users to index documents with a title andkeywords. Those words can be

entered later in a search field and a list of documentsassociated with these words will be presented. The more wordsassociated with a document the more specific the searches that canbe performed. The fewer words, the more likely a longer list ofdocuments will be returned from the search. Unique words in adocument title or keyword can be used to produce very narrowsearches. For example, searching for a specific policy number froma specific provider in the title of a document could result inimmediately locating a single document, or searching for allpolicies from a specific provider could show an agent how manypolicies are underwritten by that provider.

• Full Text Search

Full Text Search (FTS) involves looking for a document based ona word or phrase that may be contained within. FTS first andforemost requires that documents contain text. An EDMS thatprovides full text search indexes the text contained in all thedocuments within a database. As documents are filed and indexed,they become searchable using the EDMS FTS feature. This is astraightforward process for documents like email, MS Word, MS Exceland other text-based documents. However, scanned documents do notcontain text (a scanned document is an image) so they must beconverted to a format that contains text and is searchable (i.e.searchable pdf). For example an agent could search for alllife insurance policies from a specific provider. This type ofinformation may be difficult to find via other methods.

No. 4: Integration with Other OfficeApplications

It is now possible for small and medium-sized agencies toachieve levels of application integration historically reserved forlarge corporate organizations with deep IT pockets. Specifically,now an EDMS can be integrated with other core firm applications todrive efficiency and manage IT costs.

One of the bigger problems agencies face is the need to enterthe same data more than once to satisfy the requirements ofdifferent software applications such as a contact management systemor an accounting software package. Frequently these applications donot communicate data with each other. As a result, data is enteredtwice, which take additional time and increases the possibility ofdata entry errors. Selecting an EDMS that can integrate withexisting systems minimizes errors and maximizes efficiency.

No. 5: Disaster Recovery

According to research by the University of Texas, only 6 percentof companies suffering from a catastrophic data loss survive, while43 percent never reopen and 51 percent close within two years.

• If you come to work one morning to find your office has beendestroyed, would your business recover?
• Would you lose all of your paper policies?
• Are electronic documents that are scattered across manydifferent workstations now useless?
• Have you lost valuable email messages?
• Where are your policy records?
• What would you do?
• How will you process claims if you and others are subject to alarge natural disaster?

Paper documents stored in file cabinets are susceptible to fireand flood. You cannot recover a paper document that has beendestroyed by a fire or a flood. But the problem goes beyond yourpaper files. Electronic documents stored on workstations andservers across your operation are equally vulnerable tocatastrophic loss.

Nobody wants to think they might need to implement a disasterrecovery plan, but proper planning could enable your agency tosurvive such a disaster. What processes do you have in place forbacking up critical data? Consider where and how your paperdocuments are stored. Think about important electronic documentswithin your network. Now, lock the doors and walk away. How wouldyour company reestablish operations? If you take that thoughtprocess and expand it and begin thinking about what you would needto resume operations then you have the beginnings of a disasterrecovery plan.

Using an EDMS allows multiple backups to be stored at offsitelocations providing a means to recover your data in the event of adisaster.

In the event of a disaster, the goal is to be able to quicklyprocure a temporary office, install computer systems and restoreall required documents and information that enables a business tofunction. The biggest differentiator between a backup plan and adisaster recovery plan is maintaining a copy of your criticaldocuments in an offsite location.

BONUS No. 6: Return on Investment (ROI)

An EDMS can be a very valuable tool for insurance agencies. Takea look around your office and plug in numbers that make sense foryour agency and see what your ROI would be with this ROIcalculator: http://www.cabinetng.com/downloads/ROI-Calculator.xls.