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Input Management using OCR AI


AI-driven input management through OCR and NLP

In insurance companies, it has long been nothing new to digitize processes via input management systems. These systems take over the processing of incoming mail up to archiving. The primary goal is to prepare data in a structured manner, which is then passed on to downstream systems, such as an ERP system. However, these tools are often outdated and very expensive. Enhancing input management by combining different artificial intelligence (AI) solutions such as automatic text recognition (OCR) and word processing (NLP) is nowadays already used for 62 % of customer interactions in insurance companies [1]. Intelligent OCR uses Indexing and extraction of text fields or whole text sections in documents or emails and increases the accuracy of rule-based approaches by 6 % to 93 %. In addition, insurance companies save time by using intelligent automation solutions such as hyperautomation.

Process automation with hyperautomation in insurance

Im Hinblick auf die Pandemie und die daraus resultierende Wirtschaftskrise wird es immer wichtiger, Prozesse in Versicherungen zu optimieren und zu stabilisieren. Durch die Weiterentwicklung von Automatisierungstechnologien wie OCR, RPA (Robotic Process Automation) und KI ergeben sich wirtschaftlich und technologisch fortschrittliche Lösungen zur Prozessautomatisierung die Hyperautomation. Das Ziel von zahlreichen Unternehmen ist es, die Servicequalität zu erhöhen oder Umsätze zu steigern und bestehende Prozesse noch robuster für die digitale Zukunft des Unternehmens zu gestalten. Durch den Einsatz von Hyperautomation wird eine Automatisierung von Prozessen über regelbasierte Standardanwendungen hinaus ermöglicht.

Automatic fraud detection through AI in insurance companies

The insurance industry is increasingly struggling with cases of fraud, which cause billions of euros in damage every year. According to the German Insurance Association, 10 % of claims paid out in Germany go to the accounts of fraudsters [2]. To better detect the fraud attempts, technical solutions are needed that can always adapt to new circumstances and fraud patterns and go beyond rule-based approaches of input management. This is because the error rate there is high and additional manual effort is required. AI and OCR can be used to check claims for conspicuous content patterns and automatically detect anomalies. With the use of AI, an average claim amount of approximately €3,000 and the detection of 1,029 fraud cases, a savings potential of over €3.1 million could be achieved in an insurance company. 

AI in insurance individualizes the customer approach

Individualization and personalization are among the megatrends of the 2020s. Standard solutions do not inspire customers much and the demands for an individual customer approach are increasing. Insurance companies can use this development as a great opportunity for cross-selling and up-selling by using an AI-based solution as support. Based on customer information, individual e-mails can be generated automatically and the quality of communication sustainably increased. In the process, automatically generated texts can no longer be distinguished from manually created texts and the response rate can be increased from approximately 1.5 % to up to 35 %. The AI application allows for automatic learning through new input, closing knowledge gaps and making new connections on its own. Pre-trained language models such as GPT-3 are powerful text generators that independently write coherent texts and are used for successful customer engagement [3]. 

Using AI in insurance to better understand documents

The transfer of insurance documents between insurers, brokers and other partners is largely standardized by BiPRO Standard 430, but not automated [4]. AI processes data in millions of documents and helps employees find cross-selling potential in customer portfolios and save money in contract negotiation and input management. By using AI, content in documents can be retrieved in a structured way. Work steps such as typing, renaming, filing and validating are almost completely eliminated. This makes it possible to process these documents purely digitally, enrich them with known master data and harmonize them across systems. AI software learns to understand and structure information from documents 24 times faster than a human. As a result, insurance companies benefit from faster and more efficient processing of their documents.


[1] Capgemini Research Institute (2020). Smart Money.

[2] Friedrich, S. (2018). Du Lügst! in GDV Positions magazine, issue 3/2018, pages 24-26.

[3] Tan, B., Yang, Z., AI-Shedivat, M., Xing, E. P., & Hu, Z. (2020). Progressive generation of long text. 

[4] BiPRO e.V. (2021). Standard 430. 

Photo by Adrianna Calvo


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