Insurance operations involve mountains of paperwork – submissions, claims, endorsements, and more. Handling each piece manually can drain resources, extend turnaround times, and invite errors.

As the industry grows more competitive, many insurers seek automation to speed up workflows, control costs, and stay ahead. Automated document extraction has become a leading solution, leveraging AI-driven tools to collect and classify information without burdening staff.

In this article, we’ll show how automated document extraction transforms insurance workflows by cutting costs, reducing errors, and improving processing speed – ultimately giving insurers the edge they need in a competitive market.

Why do insurance companies struggle with traditional document processing?

Time-consuming manual tasks

Underwriters and claims professionals often spend hours reviewing each document for relevant data. They copy information into systems, verify entries, and check for missing fields – repetitive actions that extend timelines for policy issuance and claims settlement. With so many steps handled by busy teams, it’s no surprise human error creeps in, creating the need for rework and undermining efficiency.

High operational costs

Hiring, training, and supervising a dedicated staff for data entry adds up. Each new hire requires weeks of onboarding, and any turnover means the process starts again. For insurers juggling high volumes of documents, these staffing costs slow response times and reduce competitiveness – especially when rivals adopt faster, automated methods.

Compliance & risk

Insurance documents often contain sensitive information that must be handled according to strict data privacy regulations. Manual processes leave room for misfiled records, overlooked details, or inconsistencies in how files are labeled and stored. Such oversights can lead to regulatory fines, damaged reputations, and complications during audits – all of which highlight the need for more dependable systems.

What is automated document extraction in insurance?

Automated document extraction refers to using advanced technologies—like OCR (optical character recognition), AI/ML (artificial intelligence and machine learning), RPA (robotic process automation), and IDP (intelligent document processing)—to capture and classify insurance-related data without heavy manual input. 

In practical terms, it reads, understands, and sorts documents such as applications, claims forms, or endorsements. Then, it pulls the relevant details into core systems, speeding up tasks like risk clearance, loss run analysis, and policy updates by minimizing manual steps.

How does it differ from standard OCR?

Traditional OCR focuses on converting printed text into digital text. Automated document extraction goes several steps further. It reads the words and recognizes specific data fields, categorizes documents by type, and feeds that information directly into underwriting or claims systems. Instead of just providing a text file or searchable PDF, it supplies structured data ready for processing – leading to much faster workflows and fewer errors.

Insurance use cases where automated document extraction makes a difference

New business submissions

Underwriters frequently receive a flood of applications that require tedious data entry. Document extraction tools capture the necessary information with high accuracy so underwriters can concentrate on risk assessment rather than typing details into systems. By removing hours of manual work, the overall time to quote shrinks, and efficiency rises.

Loss runs and claims handling

Loss run documents contain extensive data that insurers need to process quickly. Automation software reads and structures that information and then populates claims systems with minimal human intervention. Turnaround times drop, valid claims settle faster, and adjusters avoid the burden of cleaning up error-prone files.

Policy issuance and endorsements

Issuing new policies, endorsing existing ones, or updating statements of values (SOVs) no longer requires sifting through multiple forms. Automated extraction pulls out the key fields – reducing errors in policy documents, speeding up client updates, and accelerating the path to final coverage.

ETL and system integrations

Migrating data from legacy systems or connecting to modern platforms becomes far simpler when tools handle the gathering, transformation, and loading of relevant details. Instead of manually curating every data point, teams can rely on high-speed accuracy, ensuring a unified data environment with minimal duplication or missing entries.

Practical benefits: time and cost savings

Reduced manual labor

Automated document extraction often cuts hundreds of hours of data entry each month, freeing up full-time employees for more impactful tasks like client relationship management or risk analysis. Reassigning people to strategic roles saves labor costs and boosts morale since employees spend less time on repetitive, error-prone tasks.

Accelerated turnaround times

Automating data capture slashes the wait for underwriting decisions or claims processing. Customers experience faster approvals and settlements, which drives higher satisfaction. In an industry where quick service can make or break a contract, shaving days (or even hours) off the process offers a clear competitive edge.

Improved accuracy and compliance

Human errors become less frequent when data flows directly from documents to core systems. Fewer mistakes mean less time fixing records or re-checking entries, which improves data integrity and audit readiness. Better record-keeping also makes it simpler to prove compliance, reducing the risk of penalties and bolstering an insurer’s reputation for reliability.

Choosing the right automation partner

Criteria to consider

Selecting an automated document extraction tool goes beyond feature checklists. Look for proven industry expertise: does the vendor understand the nuances of underwriting, claims management, and compliance? Evaluate their AI/ML capabilities to ensure the system adapts over time, not just on day one. Consider integration paths, whether that means APIs for modern platforms or RPA for legacy systems. Finally, data privacy and security must be front and center, especially when handling sensitive insurance information.

Scalability and flexibility

Document types vary widely in insurance, from straightforward ACORD forms to complex loss runs. Ensure your chosen solution can handle both structured and semi-structured data at scale. As your volumes fluctuate, the system should handle sudden upticks in applications or claims without slowing you down.

Human-in-the-loop option

Even the best automation tool can’t fully replace domain expertise. Some cases require human review—underwriters might need to see unusual endorsements or off-market policies. A blended approach where people step in for final verification ensures high accuracy without sacrificing the efficiencies of automation.

Why OIP Insurtech stands out

OIP Insurtech isn’t just another startup promising to “disrupt” the market. Our roots run deep in the industry, with team members who’ve sat at the desk, processed actual submissions, and faced the day-to-day realities that many newborn insurance software companies overlook. We’ve built our technology to address real business pains because we’ve lived them ourselves. 

That front-line history shapes our approach, uniquely positioning us to deliver solutions that truly work rather than just looking good on paper. While most software comes and goes, we combine hands-on insurance know-how with solid tech innovation to create tools that handle the real challenges you face every day.

How NT Extractor Saves Time and Cost

After years of witnessing firsthand where conventional tools fail, we poured our frontline insights into building a robust solution: NT Extractor. 

What is it?

It’s more than a basic OCR add-on – a comprehensive platform designed to tackle everything from initial submissions to final policy updates. The software continuously learns from each document it processes, achieving high levels of accuracy (up to 99%) when reading submissions, loss runs, or complex endorsements. It supports both API integrations for modern systems and RPA approaches for legacy setups, ensuring you can embed it seamlessly into your existing workflow.

Speed and real-time clearance

Insurers often struggle with bottlenecks during peak submission periods. NT Extractor keeps your underwriting pipeline moving by extracting and classifying data within seconds. Underwriters can quote more rapidly because the information they need shows up in the system almost instantly, meaning no more scrolling through PDFs or manually keying repetitive fields.

Claims data extraction

When it comes to claims, NT Extractor parses loss histories and relevant forms with minimal human oversight. Adjusters can start evaluating claims right away instead of chasing down missing details. Faster turnaround not only accelerates settlements but also sharpens your risk analysis capabilities.

Policy updates made simple

NT Extractor automatically identifies key details in documents like dec pages or SOVs, then feeds them directly into your system for immediate policy issuance or endorsement changes. There’s no need to hunt for clauses or verify every figure—our solution handles the heavy lifting so your team can finalize coverage sooner.

User-friendly AI with straightforward onboarding

Despite its powerful AI engine, NT Extractor is built to be user-friendly. Many clients get up and running quickly, with our team providing hands-on guidance for initial configurations. Once in place, the system adapts to your unique document templates and business rules, delivering the accuracy that only comes from technology developed by people who’ve navigated insurance operations at the ground level.

Final verdict

Automated document extraction is poised to become a core standard in insurance, allowing organizations to operate with speed, precision, and agility. Early adopters stand to gain a competitive edge, benefiting from faster turnarounds and lower administrative overhead.

Key takeaways

• Lower operational costs: Automating document extraction reduces reliance on manual entry, saving time and money.
• Faster turnaround times: Quoting, underwriting, and claims processing benefit from quicker data entry and streamlined workflows.
• Higher data accuracy: Fewer human errors mean fewer reworks, smoother audits, and better decision-making.
• Industry expertise from OIP Insurtech: Our frontline insurance experience ensures solutions that genuinely address day-to-day challenges.
• NT Extractor: Built by people who understand the business, NT Extractor delivers speed, accuracy, and straightforward integration for your most complex workflows.

Want to learn more? Send a message to our team and see how OIP Insurtech and NT Extractor can reshape your insurance operations.