Problem description
In the insurance sector, the task of verifying that the policy issued by the carrier aligns with the binder is crucial yet labor-intensive. This process involves the manual comparison of extensive documents, such as new and existing policies and carrier-issued binders, which come in diverse formats and can be as lengthy as 600 pages. The traditional method requires the analysis of three documents - the current policy nearing its renewal, the binder, and the new policy - to ensure that all agreed-upon coverages are accurately reflected and that there is continuity of coverage.
Time-consuming and highly manual current process
Previously, the data extraction process involved manual retrieval from the Binder, New Policy, and Old Policy, which was then inputted into a spreadsheet for comparative analysis. This labor-intensive process required around 40 professionals and was capable of handling approximately 10,000 comparisons annually.
The goal
However, there was a need to expand this capacity by 15x to over 150,000 comparisons per year, without increasing the headcount.
Solution: Hercules AI's Generative AI System
Hercules AI introduced a sophisticated data extraction solution. This system streamlined the process by requiring only two documents – the Binder and the New Policy – instead of three.
The AI-powered process could handle multiple data formats, including CSV and JSON, and was designed to efficiently extract and compare data from binders and policies. This solution significantly enhanced the insurance broker's capabilities in forms and endorsements management, handling limits, retentions, and deductibles, and ensured rigorous data validation.
Break-Even Analysis:
The break-even point is reached with the onboarding of the 64th client, occurring in just 2 months.
Benefits and outcomes
- Enhanced Efficiency: Hercules AI's solution allowed for a 15x scale in the process without the need for additional headcount, handling up to 150,000 comparisons annually.
- Accuracy in Data Extraction and Comparison: The AI system ensured precise data extraction and comparison, minimizing errors in the intricate validation process.
- Streamlined Process: The need to analyze only two documents instead of three simplified the workflow, saving time and reducing complexity.
- Improved Forms and Endorsements Management: The system could handle complex schedules of forms and endorsements, ensuring thorough verification and identifying discrepancies.
- Flexible Data Handling: Hercules AI's ability to work with various data formats provided flexibility and ease of integration into existing systems.
- Cost-Effectiveness: The reduction in manual labor and increase in accuracy translated into significant cost savings and a better return on investment.
Conclusion
Hercules AI's Generative AI System has revolutionized the insurance policy verification process. Its advanced capabilities have not only streamlined the process but also enhanced accuracy and efficiency, proving to be a game-changer in the sector.
This case study demonstrates the transformative impact of Hercules AI in simplifying and enhancing the insurance policy verification process, highlighting its role as a new-generation AI system in solving complex manual tasks with high efficiency and accuracy.
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