Document Conversion in Insurance: What You Need to Know

Insurance companies heavily rely on documents for their operations. Document conversion allows people and systems in the insurance industry to receive documents in the correct format. But that’s not all document conversion does; it’s also a key component of document digitization in the insurance industry.

With the right technology, paper-based documents can be digitized and converted into digitally accessible, editable, and searchable files. This helps streamline processes such as claim approvals, as paper documents only slow down the work.

As insurance companies are typically large, managing different file formats can quickly introduce complexities, which in turn cause delays and reduce productivity. With the right technology, document conversion can be automated.

This article deep dives into document conversion in insurance, highlighting its importance, finding solutions for the challenges, and recommending best practices. We’ll also see how MST’s document conversion technology helps insurance companies standardize format and file type.

Understanding Document Conversion in Insurance: What is Document Conversion?

Document conversion involves converting files from one type to another. For example, it may include converting a DOC file into a PDF. This is typically achieved through software. Some document creation tools can also convert one file format into another.

There are different types of document conversion:

• Paper to Digital: This conversion converts a paper document into a digital file, usually by scanning or faxing, and saving it as a specific file type on a computer. Technologies like optical character recognition (OCR) and intelligent document processing (IDP) can turn images of text documents into DOC or PDF files which can be searched and edited.
• Format-to-Format Conversion: This type of conversion changes the file format of a document, such as DOC, Excel, TIFF, JPG and other file formats to PDF or TIFF.

Why Document Conversion is Crucial in Insurance

The insurance industry is document-centric, and many different documents are used throughout its operations. Moreover, an insurance company may be dealing with hundreds of files simultaneously. For instance, an insurer may need to use hundreds or thousands of forms to gather data from claim forms to compile reports.

In addition to dealing with a large volume of documents, insurance providers must also comply with industry regulations.

For example, all health insurance companies must comply with the Health Insurance Portability and Accountability Act (HIPAA), which requires companies to protect patients’ health and personal information. Converting any physical documents into digital files and storing them on secure servers can better enable insurance providers to protect consumer information.

Document conversion may also be necessary for processing certain documents and extracting information from them for tools. If a company uses an automated tool to review claims, it must convert the claims into a file format usable by the software. The specific format may depend on the tool or system the company uses. However, converting it into the required format becomes necessary for quickly processing information.

Additionally, converting documents for archival helps with efficient, long term storage of documents and other files.

The Document Conversion Process Step-by-Step Guide to Document Conversion

Here’s a detailed guide on document conversion automation in insurance:

Assess Conversion Needs

Identify processes and workflows where document conversion may be needed. This can be a process where documents, such as forms, identity documents, images, etc., are received from outside.

Some documents may be received in paper format, which must first be converted into a digitized format.

Acquire the Tools

Acquire the tools necessary to convert documents, depending on the specific needs. For instance, a scanner/fax/camera and OCR software may be needed for paper documents. Depending on the file types, specific tools may be used for format-to-format conversions.

Conversion

While the exact steps may vary, most tools generally follow these steps for format conversion:

• Select the conversion type, for example, TIFF to PDF
• Upload the document (the tool must be able to access the location of the file)
• Adjust any settings (some tools allow specifics to be altered, such as file size or quality)
• Initiate the conversion

Verify and Store

Check the file to see if it has been successfully converted into the required format and store it at the desired location, such as a local server or the cloud.

Challenges in Document Conversion for Insurance

The size and structure of insurance companies can introduce complexities in something as simple as changing a file’s format. Like any other operation, this one also calls for efficiency. However, there are challenges to deal with to ensure smooth document conversion.

• Data Security and Privacy Concerns: Sensitive documents always risk compromised information. Software vulnerabilities are often to blame for such incidents, and that can be an issue with free document conversion tools available online. They might not delete the files after conversion or collect information. It’s essential to use trustworthy tools with proper licensing and built-in security features to avoid dangerous, and often expensive information leaks.
• Handling Legacy Systems and Formats: Another common issue insurance companies face is managing legacy systems. These systems have outdated formats that not every tool may recognize and be able to convert. Plus, integration becomes necessary if conversion is to be automated. This challenge can be addressed using an integration-friendly tool that seamlessly works with the existing systems, automatically converting legacy documents into the required format.
• Volume Scalability: In some operations and jobs, the sheer volume of conversions is too much. Documents in various formats may need to be converted altogether to increase efficiency. Not all tools may be capable of handling a high volume of conversions simultaneously. MST’s Batch Converter is designed to address this problem, allowing the conversion of a large number of documents into PDF or TIFF format.
• Loss of Information and Poor Conversions: When dealing with files in legacy formats and converting them into more modern file types, there’s the risk of compromising information. Not every line or every pixel may convert successfully, resulting in improper conversion and loss of information. This is why it’s essential to utilize a high-quality tool compatible with different file formats that can convert files without compromising the quality and integrity of the data.
• Annotations: Another challenge is migrating technology vendors. Documents from older platforms or other vendors have proprietary annotation data that cannot be displayed with the document. This is a challenge for many insurance companies, requiring them to keep their old, outdated systems just to be able to access the annotation data.
• Real-Time Document Processing: Some processes may call for more swift, automated real-time conversions. The insurance company should look into integrated solutions that convert received documents into a standardized format for such processes. For instance, if a customer fills out a form online and attaches JPG images, they may be converted to PDF automatically for further processing.

Benefits of Automating Document Conversion in Insurance

Automation in document conversion has several benefits for any insurance company, regardless of niche or size:

• Efficiency and Cost Savings: Automated document conversion is a surefire way for insurance companies to increase operational efficiency. Similarly, it can cut costs by eliminating time wasted due to format incompatibilities.
• Improved Compliance and Audit Readiness: Automated conversions and standardized formats can help insurers prepare for security audits and demonstrate compliance with international regulatory standards. This will show a commitment to efficiency and high-security standards for any auditor, internal or external.
• Enhanced Customer Experience: An insurer can quickly process claims and requests to meet its service level agreements (SLAs). That, in turn, helps improve customer experience, increasing the likelihood of them coming back.
• Reduced Human Error: Using a tool to convert one file to another or turning paper documents into digital ones eliminates the possibility of human errors. It ensures data integrity throughout the process, keeping information consistent across formats.
• Faster Decision-Making: Quicker access to organized and searchable documents enables faster decision-making for managers and executives. It Improves response times for claims and customer inquiries.
• Environmental Impact: Reducing reliance on paper documents through digital conversion results in a lower carbon footprint. Instead of making copies of paper documents, they can be distributed digitally. That can reduce costs and exhibit a commitment to the environment.
• Enhanced Collaboration: Some file formats are more collaboration-friendly. For instance, teams can collaborate more quickly and easily on a DOC or PDF file. That can boost productivity, creativity, and innovation.
• Space and Resource Savings: Converting physical documents into digital formats saves storage space. More importantly, it reduces costs associated with creating and maintaining paper records.

Best Practices for Document Conversion in Insurance

Insurance document digitization and conversion can be improved with the following practices:

• Choosing the Right Tools and Technologies: Go with reliable, quality tools for conversion. Consider the supported file formats, scalability, security, and compatibility with existing systems. If it can be integrated with your current systems to automatically convert files, even better.
• Regular Monitoring and Quality Control: Conduct regular audits to ensure conversion quality and compliance. Check and verify documents pre and post-conversion to ensure that files aren’t corrupted during conversion.
• Training and Skill Development: Although document conversion tools are easy to use, it is still a good idea to provide staff with training, including guidelines on how to troubleshoot common issues and errors.
• Document Lifecycle Management: Establish protocols for managing the entire lifecycle of converted documents, from creation to archiving or deletion. Define workflows and rules for conversions, specifying who has access and where the documents will reside.
• Customizable Workflows: Use customizable workflows to adapt the document conversion process to the specific needs of different departments and teams. Automate certain workflows with the help of a document converter.
• Optimize Size: In addition to converting file formats, you can optimize the size of files to take less space in cloud or on-premise storage. This can be useful for media files that are typically large.
• Scalable Infrastructure: Invest in scalable infrastructure to handle growing document volumes.
• Gather Feedback: Regularly gather feedback from users and stakeholders to improve the conversion process. Adapt to emerging needs and technological advancements.

How MST Solutions Optimize Document Conversion for Insurance

MST offers an easy-to-use document conversion tool with its Batch Converter. It’s a multi-format document converter that supports many file types, including AFP, Microsoft Office, TIFF, JPG, ASCII, PDF, EML, and more. It is designed to support large volumes of files and can convert batches of documents at once. All files, whether text documents or images, can be converted into the desired format.

With its speed and reliability, MST Batch Converter is an ideal solution for insurers managing high volumes of documents in various formats. Additionally, the annotation data from IBM CM8 and FileNet P8 can be converted to PDF annotations or “burned” to the document so keep that data visible with the document.

The tool seamlessly integrates with major content and document management systems in the insurance industry. Using APIs, it can be connected with even more systems, including legacy software.

Major insurance providers are already using MST’s Batch Converter to increase efficiency in their operations and convert files at scale.

AON, which also provides insurance brokerage services, integrated Batch Converter with its legacy IBM systems, which produced AFP format files. These files are quickly converted in bulk into various formats. It helped AON implement standardized file formats for its teams across different departments.

Blue Cross Blue Shield (BCBS), a leading health insurance provider, resolved the difficulty of its adjusters dealing with various file formats. It uses the Batch Converter to convert files in DOC, TIFF, JPG, and MO:DCA formats into an easily accessible PDF format. Furthermore, thanks to a .NET SDK, BCBS could easily deploy MST’s tool on its infrastructure without a framework or operating system limitations.

Conclusion

Efficient document conversion in insurance leads to quick workflows, better productivity, cost savings, and greater employee and customer satisfaction. It can standardize processes, which leads to fewer errors and more data integrity.

MST’s Batch Converter has helped insurance providers tackle file format challenges and convert files at scale automatically, seamlessly integrating with their existing systems.
Contact MST to discover how its solutions can help address your document conversion needs!