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The Proof Is in the Paper

The role of dynamic document automation in the insurance industry

by Troy Gross, Cincom Document Solutions

For the insurance industry, paper is proof. You can create all the marketing campaigns you want with happy parents, safe kids and talking lizards, but at the end of the day, customers need paper to prove they have an insurance policy.

Managing the creation, integration and deployment of that paperwork is what keeps many insurance industry executives awake at night. Do any of the statistics below sound familiar?

• 80 percent of insurance enterprises use manual processes, homegrown software or outsourced document production to manage documentation 70 percent of insurance enterprises believe document costs are an organizational challenge.

• 65 to 70 percent of organizations say obtaining approval of regulated document content and ensuring the correct content version in new documents takes either days or weeks.

• 61 percent of respondents consider document quality an organizational challenge.

• 51 percent of respondents consider document personalization an organizational challenge.

These statistics are from a recent survey of decision-makers at insurance agencies conducted by Celent LLC. As the numbers show, documentation can be a huge challenge. If your organization seems mired in paperwork, relax. Dynamic document automation is poised to rewrite the rules of insurance-industry documentation.

By creating new avenues to update, deploy and personalize documents, dynamic document automation smoothes processes, providing more value for you and a stronger connection to your clients and prospects.

Beyond transactions

According to survey results, many insurance-company leaders think they can keep up with market forces by adding another patch to their legacy document systems. But there’s a big difference between simply producing static documents and delivering a rich experience through document communications.

Simply put, core administration/management systems focus on the transaction aspects of proposals, policies and claims. Dynamic document automation solutions focus on the interaction aspects of proposals, policies and claims.

The “dynamic” part means your existing transactional data integrates with real-time data captured by business users who are interacting with customers (claims representatives servicing claimant calls, for example). Business rules embedded within each document “template” then trigger automated presentation and layout for each document as well as which data to include from the transaction system to ensure the customer receives only the information he or she requests or needs to know in an easy-to-understand format.

For example, you can create a business rule to print in a larger font for any auto insurance policy sent to a customer over the age of 60. When that customer receives the new policy, he or she appreciates the extra effort your company took to make the policy readable and approachable.

Personalization isn’t just a “touchy-feely” thing with an intangible ROI. Insurance companies that use dynamic document composition find that personalized, content-rich communications improve customer acquisition, reduce customer churn and increase cross-selling opportunities.

Power to the people

While the benefits of dynamic document composition are obvious, how does it work on a daily basis? How do you quickly update documents and business rules to provide the personalization customers crave? Many top insurance companies have learned that when you give the power to update documents back to your business-line employees, you reduce costs and increase efficiencies.

Dynamic document composition moves document creation and editing out of IT departments and onto the desktops of non-technical, line-of-business professionals. Your subject-matter experts can easily update customer correspondence in real time, without having to flag down an IT tech or wait days for updated code in a legacy system.

Most large insurance companies are reluctant to change their documentation processes — the cornerstone of their business — because they fear transferring their core data out of a legacy system. Yet, the best dynamic document composition systems effortlessly integrate with legacy applications, databases and IT infrastructures through open standards and services-oriented architecture (SOA).

That flexible deployment and integration means you don’t have to worry about losing data. Plus, you receive a rapid and continuous return on your investment. The best dynamic document composition systems provide a single solution that easily scales from interactive, on-demand correspondence (such as proposals, claims, letters and reports) to fully composed, high-volume batch generation (such as policies, statements, booklets and notices).

Market forces drive innovation

The reducing speed to market and driving forces in the insurance industry today encourage insurance companies to seek new solutions. But is customer turnover the pain of change worth it?

Leading insurance companies across the country agree it is. They are receiving cost savings and new efficiencies due to dynamic document automation. Some of the benefits Cincom clients have experienced include:

• Acquired, strengthened and expanded customer relationships

• Presentation and content personalized to each individual customer

• Increased cross-selling opportunities based on archived content

• Improved document production time by as much as 90 percent

• Realized cost savings equivalent to 1 to 5 percent of revenues

Is your company ready for a 21st-century solution that allows you to strengthen your relationships with existing customers? Do you want to capture the attention of potential customers? Dynamic document composition is a common-sense solution that allows any company to deliver the right information in the right format to the right audience at the right time and for the right reason. It helps you make the most of your typical customer transactions through rich, personalized interactions. When the proof of your commitment to personalized customer service is in your paper, your insurance company stands head and shoulders above the rest.

Troy Gross is the marketing manager for Cincom Systems’ Document Solutions division. Prior to joining Cincom, Troy played an integral role in the growth of Cintech Solutions, Inc. from an entrepreneurial start-up to a market segment leader in the contact center software space. During his 10 years with Cintech, Troy progressed from various marketing management roles to become the Director of Marketing and Business Development. Prior to Cintech, Troy developed a diverse background in marketing, finance and international business with management positions at Cincinnati Microwave, Square D - Groupe Schneider, EDB Holdings/Vision Express and Lenscrafters. He can be reached at tgross@cincom.com.