Securely Manage Your Insurance Claims Process with a DMS

The insurance claims process is a core activity for any insurance company. But it’s one that still relies heavily on traditional methods and operational processes across most of the industry. While digital transformation has begun to have an impact, workflows often remain disjointed, manual and inefficient. 

Automated workflows for claims management ensure that seamless hand-off and drastically reduced errors create a faster and more compliant process for insurance claims. The right Document Management System (DMS) implements automated workflows to ensure your claim management runs more smoothly, enhances security, and improves customer satisfaction rates.

• Top Bottlenecks in Traditional Insurance Claims Processing
• How a DMS Addresses Challenges in the Insurance Claims Process
• Elevate Your Claims Management Process with a DMS Solution

Top Bottlenecks in Traditional Insurance Claims Processing 

Within the traditional claims management process, there are several manual steps that cause bottlenecks, from physical document collection and processing to verification of claim details. These steps frequently produce not only inefficiencies, but also compliance risks: 

Manual document handling and filing 

Managing and sorting paperwork related to claims is highly time-consuming and filled with potential for human error. From misfiled documents to duplication of work, current file management flows slow down processing time and cause frustrations for stakeholders throughout the claim lifecycle. 

Lack of centralised document access 

Many departments contribute to a claims process, from intake and adjusters to underwriting and processing teams. Without a centralised repository where version history and security is not carefully tracked, teams struggle to share and update documents efficiently and compliantly. Scattered methods and systems for record management slow down teams at all points of the claims process. 

Difficulties in tracking and status updates 

It’s essential that the claims process is handled transparently, for both policy holders and internal teams alike. But outdated systems make it tricky to track the status and next steps on individual claims. This inability to provide accurate, real-time updates reduces trust and satisfaction for customers. 

Compliance and security 

There is a lot of sensitive personal and financial data captured within insurance claims. Compliance with regulations like UK GDPR, Privacy and Electronic Communications Regulations (PECR) and following guidance on industry standards from the Financial Conduct Authority (FCA) are essential risk management strategies. But traditional systems typically lack built-in security features and document control to effectively protect data, so the risk of breaches and non-compliance increases the company’s exposure to regulatory fines. 

How a DMS Addresses Challenges in the Insurance Claims Process 

With a digital-first approach through robust document management software, insurance companies can leverage automated workflows, improved collaboration, and enhanced data security for a more compliant and efficient claims management process. 

Reducing document retrieval time 

Locating a specific document in a traditional filing system can take hours. Even with digital documents in dedicated sharepoints, the handover process and multiple touchpoints throughout the claim lifecycle can quickly create mess and confusion. 

A DMS eliminates this by enabling instant, keyword-based searches. This means teams can quickly retrieve policy documents, claims forms, and correspondence in seconds. This speeds up everything from processing times to decision-making and approvals.   

Insurance companies are leaning more into the concept of insurance ecosystems, as outlined in EY’s 2024 Global Insurance Outlook Report, which requires a highly close and efficient level of collaboration between teams, including the sharing and processing of documents.  

Enhancing data security and compliance 

Today’s DMS platforms come with powerful built-in security features according to compliance best practices. Features like role-based access controls, encryption and audit trails ensure that sensitive data remains safe and protected. 

It’s an important aspect of both compliance and consumer trust. Data protection and security are under increasing scrutiny in the industry, with regulations such as the Data Protection Act 2018, the UK General Data Protection Regulation (UK GDPR), and Privacy and Electronic Communications Regulations (PECR) mandating strict usage and storage policies for both physical and electronic data and documents. With a DMS, your documents access and storage is secure and audit trails can be produced for compliance checks at any time.

At a time when people are more concerned than ever about the security of their data, it becomes a competitive advantage, too. When you can assure customers that only authorised personnel can access personal and financial documents, features like access control and secure document archiving contribute to building trust and reducing the risk of expensive breaches and fines. 

Reducing processing errors with automations 

Whenever people have to deal with data input and validation and/or manual filing, a certain level of error is guaranteed. Human error happens, but it can cause bottlenecks and duplicate efforts further down the process when these errors need to be corrected. 

Manual entry takes time in itself, plus any two-step validation that goes with it. Errors are inevitable, and take further time to correct. All the while, customers are left waiting through long processing times and the business loses precious time and money. 

Automated workflows for claims documents within a DMS drastically reduce the potential for human error. A DMS guides team members through pre-defined processes and validates their work as they go. For example, it means that incoming claims can be automatically categorised, validated and assigned to appropriate team members at the click of a button.  

The result is a faster, far less error prone workflow for the claims process from beginning to end. 

Streamlining communication between teams and customers 

Timely communication and updates are key throughout the claims process. From automated document workflows and approval processes to daily task management and email notifications throughout a process lifecycle, a DMS keeps everything moving.  

With documents properly managed and processing made faster, this contributes to lower numbers of customer inquiries and reduces the burden on your customer-facing teams and your underwriters. Collaboration between departments also improves significantly, as the relevant people are kept up to date on what is needed from them next. 

The data shows that improvements like this in the customer experience are not to be sniffed at. Increased competition and higher customer expectations are already costing the industry. A 2022 report from Accenture found that 30% of dissatisfied insurance claimants had switched carriers in the past two years, and a further 47% were considering making a switch, too. The same report found that poor claims experience could put $1.7 billion of premiums at risk, and that underwriting process inefficiencies could cost the industry a further $1.6 billion between 2022 and 2027.    

Automation in document handling is key to bridging these gaps, and allowing teams to focus more on core activities and less on administrative burdens.  

Eliminating data loss with backup and recovery features 

Paperless systems are essential in today’s digitised world. It’s not all about speed and efficiency—paper-based systems are highly vulnerable to interference and loss from fires or floods. Plus, they are easily lost in manual filing systems. 

Additionally, the insurance industry is under increasing pressure to improve their ESG compliance and implement Net-Zero targets, making full digitisation a critical strategic pillar.  

With a DMS, all documents are securely stored and backed up. Not only are they easily recoverable if something happens, it’s also the difference between shuffling through papers and clicking a button when you need to retrieve them. 

Elevate Your Claims Management Process with a DMS Solution 

Implementing a DMS certainly solves bottlenecks in your current insurance claims processes. But it’s also about future-proofing your organisation. In a compliance-heavy world that increasingly relies on digital documents and communication, a DMS ensures your documents—from claims processing to accounts payable and HR documents—are stored securely, compliantly and are available for retrieval whenever they’re needed. 

With DocuWare’s DMS, you can optimise operational efficiency, improve customer satisfaction, and scale your claims operations with ease. Our automated workflows and intelligent document processing enable your insurance organisation to reduce time and effort and improve accuracy and security. Take your insurance document processing to the next level - Get a full tour of Docuware today.