The best tools for insurance agents help them to improve efficiency and reduce wasted time and money. These tools add accuracy and reduce human errors. Some technology can even help agents reduce E&O claims filed against them.
But which tools should you invest in this year for your agency? With so many to pick from, it can be challenging to determine which are the best tools for insurance agents.
Read on to see our top five ways to use technology tools to reduce E&O claims.
The Best Tools for Insurance Agents to Reduce E&O Claims
Try these five tools to help reduce your E&O claims:
Robotic Process Automation (RPA)
Robotic process automation (RPA) is software designed to automate processes within your insurance agency. RPA reduces operational costs by improving processes and reducing manual intervention. It allows anyone to update your system, making it easy to add efficiencies to your agency.
RPA reduces the potential for human error. When people update data manually, there is the potential for typos or transposing errors. But by automating these processes, you can reduce errors that could lead to E&O claims.
Optical Character Recognition (OCR)
Another way to enhance efficiency and save time and money at your agency is with Optical Character Recognition (OCR) technology. OCR software helps you scan document packets and pull out relevant data, then convert that data into a usable form in your management system.
OCR saves you time when documents come to your agency in various forms — receipts, handwritten reports, or contracts. The software recognizes and pulls out the key details from original sources and imports that data into your management system.
OCR is faster than manually entering details into the system, and it removes the potential of human errors. It allows you to save time by scanning and transferring information immediately instead of waiting for an employee to do the work manually. E&O claims can begin with a simple mistake, like missing crucial details in a document or missing a compliance time frame. OCR helps with both of those issues.
Electronic Signature
Ensuring customers sign and date policy documents is an essential consideration for agents and brokers. Instead of relying on wet signatures, you can save time and money using an electronic signature option. But you also can help protect your business and reduce your potential exposure to E&O claims.
Electronic signatures are immutable — you will have a digital record of the date and time it was signed, what IP address opened the document, and what the document looked like at the time of signing. This is helpful if you need to modify the contract or add an endorsement later — or if you need to prove the original contents of the document.
Automated Certificates of Insurance
Certificates of Insurance is an area that generates a high number of E&O claims. But if the agency has a sound management system to prove it delivers COIs, it can help to reduce the potential for E&O claims.
Delivering COIs through an automated process may be a helpful solution for many agents and brokers. Various insurtech vendors provide this service if you decide automating your COI delivery process is best for your agency.
An automated COI delivery process reduces the risk of human error. It also provides you with a failproof delivery record. Proving receipt of the COI is often critical in defending E&O claims.
Electronic Policy Delivery System
Many agents and brokers have switched to delivering copies of policies electronically. This is convenient and saves money — but with the added convenience comes the risk of whether your policyholder received their electronic document.
Add security measures to your electronic delivery system to help reduce the risk of an E&O claim resulting from an insured who did not receive or read their electronic policy.
- Policyholders should sign an opt-in form for electronic policy delivery, and you should keep the document in your file.
- Request affirmative confirmation of receipt of the policy documents from your insured. Do not rely on the automatic email sent receipts.
- Try a system that allows you to email your policyholder a link to a secure site to view their policy documents. Build in confirmation to your system that the customer opened and accessed the document.
- If you cannot confirm electronically that your customer received their policy documents, call them to confirm it verbally.
- Document your management system with your efforts. Link your emails and automated receipts to update your management system automatically.
The American Agents Alliance Offers E&O Insurance
Purchase your E&O insurance through the American Agents Alliance. Our coverage offers special rates for new agents, and a cyber liability extension is included! There is no aggregate program limit, unlike many other policies.
The American Agents Alliance helps empower independent agents and brokers to thrive. Join us for exclusive member benefits and powerful networking opportunities.
