Application of OCR Technology in the Insurance Sector

Traditional Document Processing Workflow in the Insurance Industry

For Insurance Providers

The traditional operational workflow typically involves manual data entry and information processing. Every week, thousands of insurance-related transactions require handling, with dozens of staff working eight-hour shifts to convert paper-based documents into digital formats. These include critical data such as ID numbers, addresses, health insurance codes, etc. Manual data entry is not only time-consuming and labor-intensive, but also prone to a high risk of input errors, which can disrupt business processes due to inaccuracies in the initial data.

In the old operating model, when a customer experiences an incident such as an accident or injury, insurance staff must search for the customer’s insurance file, collect physical documents, and cross-check and verify information against medical records or accident reports. Only after these steps can the customer’s insurance claims be processed. However, within this cumbersome procedure, the likelihood of lost or misplaced documents is high if insurance records are not properly stored and managed.

For Insurance Customers

The traditional process of purchasing insurance is relatively complicated due to burdensome administrative procedures and paperwork. In some cases, finalizing an insurance contract can take several months because the document processing for individual customers is prolonged. During the insurance participation process, handling contracts to receive insurance benefits is also time-consuming and labor-intensive, often lacking prompt resolution. This causes inconvenience and leaves a negative impression on customers regarding the professionalism of the insurance company—especially in the digital transformation era, where customers have a wide range of competitive choices in a dynamic insurance market.

Application of OCR Technology in the Insurance Industry

What is OCR?

OCR (Optical Character Recognition) is a tool that automates data entry and document digitization tasks, particularly for identity-related documents. OCR can quickly convert images of printed or handwritten text into digital, editable, and searchable text stored on a computer.

OCR technology integrated with artificial intelligence (AI) offers significant advantages over traditional scanning technology, as it can extract readable and editable text fields from captured images. Therefore, applying OCR technology in the insurance industry—which is characterized by the need to handle massive volumes of data—to extract essential information from personal documents and forms is being prioritized by many businesses. The adoption of OCR in practice has sparked a revolution in the insurance industry's digital transformation journey.

Fast Input Data Standardization

With smart OCR technology, collecting customer information during the insurance enrollment process becomes much simpler. Insurance staff no longer need to spend hours manually entering customer data. Using OCR, images and printed documents are automatically scanned and data is extracted into digital formats stored on computers. All collected data is encrypted to ensure secure and compliant processing.

The extracted data is stored on computers and can be easily edited and synchronized across the enterprise's data system. At the same time, AI-based data encryption is performed automatically and swiftly—within just a few seconds, the information is encrypted with high accuracy. Thanks to OCR technology, insurance companies can process and collect information quickly, accurately, and efficiently—offering customers a better experience and access to modern technologies.

Accelerated Customer File Processing

When OCR is applied in insurance processing workflows, all customer insurance documents are digitized, extracted, and stored according to business needs. When needed, with just a few clicks, employees can quickly retrieve insurance files to perform necessary tasks—eliminating the need to sift through mountains of paperwork as before.

OCR’s fast and convenient information processing is not only beneficial during the COVID-19 period but is also particularly suitable for today's customer habits, where there is an increasing demand for online procedures. With OCR technology, customers no longer need to physically visit the insurance office; they can simply upload their information and images online. All customer data is processed automatically, without intermediaries, significantly reducing the risk of errors.

Large-Scale Information Storage

Storage systems are considered a critical component in the insurance industry. Beyond the need for vast data storage capacity, information security and system-wide data synchronization are also essential. With OCR technology, information is encrypted and automatically stored in the cloud. Large-scale storage systems ensure customer information is fully and rapidly saved, minimizing the risk of data theft or loss.

Customer Benefits When Companies Use OCR

The application of OCR technology in the insurance sector not only brings significant benefits to insurance companies, but also offers great value to customers—the end users of insurance services.

The first benefit customers receive is an improved, modern, and more professional experience. With just a few simple steps, customers can complete their insurance documentation without going through cumbersome procedures or wasting time in long queues to submit paperwork. According to a 2018 report from Microsoft Dynamics 365, 95% of consumers said that customer service is important to brand loyalty—a striking statistic. A better customer experience means companies can retain customers more effectively and increase their profits.

In addition, digitized documents are more secure, as insurance claim processes are automated using OCR technology and stored directly in the company’s CRM system without human intermediaries. This reduces the risk of data privacy breaches and delivers a safer, more trusted experience for insurance customers.

OCR Studio – The Leading Document Digitization Solution for the Insurance Industry

With its ability to extract and auto-fill data fields, OCR is widely applied in document digitization. At GMO-Z.com RUNSYSTEM, our team of top experts in economics and technology has developed OCR Studio, an intelligent document digitization solution. This enables insurance companies to digitize paperwork with up to 99% accuracy, ensuring significant cost and time savings, and maximizing investment efficiency.

99% Accuracy – Market-Leading Handwriting Recognition

OCR Studio not only accurately recognizes standard text from well-maintained documents, but is also the only solution on the market capable of recognizing elements such as stamps, signatures, and checkboxes. It can also process noisy backgrounds caused by colors, stamps, or tables. Most notably, OCR Studio is the only solution capable of accurately recognizing Vietnamese handwriting, making it practical for real-world insurance operations as required by businesses.

Flexible Information Extraction Tailored to Real Business Needs

OCR Studio has the capability to extract data fields according to specific requirements and allows for post-validation of the data. Even non-IT users can easily define their own custom fields for data extraction. With an App Store library of over 50 ready-to-use document templates, businesses can immediately extract relevant information without needing to define formats from scratch. In addition, we offer a range of exclusive features not available from any other provider on the market, including:

• Dictionary Tool: A data standardization tool used for specific document fields.
• Standardized data synchronization with other systems, such as ECM systems or other enterprise data platforms.
• Asynchronous document extraction processing: For clients with a large volume of documents, the system can upload all files at once and process them asynchronously.

Outstanding Implementation Capability

With 20 years of experience in software development, IT solutions, and services for both the Vietnamese and Japanese markets, we are confident in delivering high-quality solutions with the most dedicated customer support. The OCR Studio document digitization solution has been trusted by hundreds of major partners, such as:

• Cathay Vietnam Non-Life Insurance Co., Ltd.
• Shinhan Bank
• Southeast Asia Commercial Joint Stock Bank (SeABank)
• Toyota Finance, among many others.

If you're interested in this solution, please contact us using the information below to receive a consultation from our expert team!

Smart Solutions – The Digital Transformation Solution Ecosystem
Digital Transformation Division under GMO-Z.com RUNSYSTEM

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