Imaging: The Key To Document Management You may be able to eliminate paper files once a case file has been imaged
It seems hard to believe today, but it wasnt that long ago that most carriers manually processed their applications, then physically passed them from one process step to the next. Misplaced documents were commonplace and locating them resulted in a lot of wasted time.
Thankfully, over the past couple of years, a number of carriers have embraced the clear advantages of imaging. Applications are now scanned at the point of entry. Then, sophisticated workflow software electronically passes these images from one processing station to the next, with an audit trail at each step. Virtually overnight, once a document is scanned it becomes a permanent, auditable and easily located file.
Imaging technology is now making its way to the customer, as well. Instead of sending a paper application to the carrier, producers and brokers are starting to realize the benefits electronic document imaging can offer.
While substantially reducing overnight courier charges and storage costs, there are many other benefits of moving to an imaged environment. Depending on your document retention guidelines you may be able to eliminate paper files once a case has been imaged. If you have a large operation, you can customize your imaging environment to match your workflow, thus eliminating paper handling.
The result is a significant reduction in cycle time to issue a case. Remember, not only do you save time by transmitting the imaged application, you realize these savings with those supporting documents that need to be transmitted at a later date. Each time you image and transmit a piece of paper, youre eliminating one to two days of cycle time en route.
To set up an effective imaging environment, a lot of thought and planning has to go into the process before scanning that first piece of paper. Be prepared to do some new work. In order for carriers to automatically process and route your documents, they will need to receive some accompanying information containing such things as document type and sender. This requires someone at the source preparing the documents before they are scanned. While this requires some extra work at the beginning of the process, it can trim days off the total cycle time and save a lot of money.
Lets establish the obvious. Make sure your preferred carriers can accept imaged documents. If so, they probably have a team that will assist you to make the move. They can help you identify vendors, provide training and possibly help to improve your internal work flow.
The most important thing is to do some research. There are several vendors offering solutions for both Life and P&C. Ask other producers whom they use. Ask your carriers what vendors they would recommend. Try to avoid a situation that requires you to buy your hardware and software from one vendor only.
Most vendors will provide a list of approved equipment that will run their software. Buying a $99 scanner at the local office equipment store probably wont meet your needs. Spending the extra money on a high-speed scanner (maybe even two) could make the difference between your imaging operation being an asset or a liability to your business.
What does it cost? That really depends on what you want to use imaging for and the volume involved. If you want to just store and transmit documents to a carrier, you can probably get away with an investment of between $1,000 and $5,000, depending on your volume. If you have multiple users and need workflow to various functions in your shop, the price will go up. Its not uncommon for a carrier to invest $2-to-$5 million in imaging and workflow technologies.
In addition to the initial investment for hardware and software, most vendors charge a per-page fee. Usually this is just a few cents per page. However, a typical life insurance application package can reach up to 20 or 30 pages. If youre scanning 100 application packages a week, this will quickly add up. Make sure that your vendor spells out all ongoing maintenance and usage fees, and make sure you do the math.
In the next few years, we will probably see some carriers refusing to accept paper applications altogether. Carriers and producers are realizing the benefits of not having to deal with a physical piece of paper, and combined with the growth of electronic applications, the whole industry is starting to move toward straight-through processing.
Over the past four years, document imaging has had its successes and challenges. Some producers have had tremendous success and others have experienced some big and small bumps along the way. Ensure success by talking with others, meeting with vendors and, finally, making certain that the people who will actually be doing the scanning are part of the total process.
Simply put, do your homework.
Tony Hashem is an IT Leader at GenWorth Financial in Lynchburg, Va. He can be reached via e-mail at Tony.Hashem@ge.com
Reproduced from National Underwriter Edition, October 21, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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