Insurance comes in different forms, and some of the common examples are life insurance, health insurance, car insurance, commercial insurance, and home insurance, etc. An insurance claim refers to an official request made by a policyholder to an insurance provider, in a timely and orderly manner, for the payment of an experienced loss covered by the insurance policy.
Insurance claim processing is the procedure of an insurance company in checking the claim request for necessary information, validation, justification, and authentication.
As an insurance company handles a large amount of data, it usually uses advanced technologies, such as OCR, ICR, AI, and machine learning, to automate insurance claim processing. The insurance provider can digitize the policyholders’ information using OCR or ICR powered with AI or machine learning to extract necessary data.
Then, the insurance company can put the extracted data into a single management system for easy access and storage. This allows fast and convenient verification of insurance claims, making the process efficient for both the insurer and the insured.
Nowadays, most insurance companies are automating and expediting their insurance claim processing. Aside from a faster procedure, insurance companies can prevent human error from entering and handling data, which are crucial elements in processing insurance claims.