Most certainly an insurance company should work toward going paperless. We have made tremendous progrress toward being 100% paperless. Attached are some of the articles that have been writing about our company.
http://www.docfinity.com
ph: 814.238.0038
Panhandle Farmers Mutual Insurance Company
Attains Competitive Edge with Paperless
Processing
In the insurance business, only the strong
survive. How, then, can small or midsized
insurance companies compete with
the giants? Panhandle Farmers Mutual
Insurance Company is a small company,
but by any measure, also typical. In 2003,
Panhandle employed 8 people; four years
later, their workforce consists of just five.
Nonetheless, with this 37% reduction in
staff, Panhandle Farmers Mutual Insurance
Company generates more premium volume
than in 2003, with less of a burden for each
of the remaining employees. The company
anticipates growing by 35% over the next several years without having to add new staff.
What secret weapon keeps them competitive? Electronic document management. Art
Meadows, President and CEO of the company, spearheaded an initiative to embrace
technology at Panhandle. Optical Image Technology, Inc.’s (OIT) DocFinity® suite has
been the key component of the company’s transition to paperless processing. The results
have been significant.
In just a year and a half after DocFinity implementation, Panhandle was able to go
entirely paperless with the following processes:
* Panhandle has printed copies only because they are required to by law.
DocFinity has also helped Panhandle dramatically reduce paper with respect to the
following practices:
challenge
To use technology to
enable a small insurance
company to generate
more premium volume,
reduce its expense ratio,
and remain competitive
with minimal staff.
solution
Optical Image
Technology, Inc. and
the DocFinity suite of
electronic document
management software
benefits
Panhandle Farmers
Mutual Insurance
Company anticipates
growing by 35% over
the next several years
without having to add
new staff. The system
has improved customer
service, decreased costs
associated with the use
and storage of paper,
and simplified the audit
process.
A+ Claim reports Faxes
Operating System reports Agent commission statements and checks
Mortgagee notifications Cancellation/reinstatement notices to agents
Reinsurance Contracts Quarterly and Annual Financial Statements*
Reinsurance Recovery Payments Reinsurance Premium Submissions
Actuarial Opinions Annual Financial Audits*
Change requests:
80% paperless submission
Claims reporting:
97% paperless submission
Online Payments:
14% electronically submitted
Credit reports: 65% paperless
submission
Applications:
65% paperless submission
DocFinity Award-
Winning Technology
Presented by IASA in 2007 to
Unitrin Direct for their
use of DocFinity software
http://www.docfinity.com
ph: 814.238.0038
History
Panhandle Farmers Mutual Insurance Company offers a variety of property and casualty insurance products primarily designed to meet the needs of the small rural communities of West Virginia. The company presently offers dwelling fire, allied lines, homeowners, mobile homeowners, farms, small commercial and liability coverage. For more than a century, claims, contracts, policy files, invoices, and other processes were entirely paper-based. Previously, Panhandle relied on more than 20 fireproof four-drawer filing cabinets for storage of clients’ records and files. Each empty filing cabinet weighed 735 pounds.
When Meadows took the helm in 2003, his primary objective was to change the focus and direction of the company’s operations. He recognized that Panhandle could significantly increase efficiency by incorporating technology into their office processes. In his first three years with Panhandle, Meadows implemented more than 100 different procedural changes.
Panhandle uses INSPRO™ by Town and Country Computer Services, a policy management system for small to mid-sized insurance firms. Meadows’ first endeavor was to increase the efficiency of that system. Later, he streamlined the company by implementing electronic transfer, incorporating electronic mailing to reduce paper mailing, and instituting direct deposit for payroll and commission. Overall, though, he recognized that a fundamental component of increasing efficiency would be to create a paperless office.
Meadows says, “When we decided to go paperless one of my goals was to not only make our files paperless, but to change the process to control paper flow into our office. I have seen and talked with so many insurance companies that have had paperless files, but did not design or develop controls to reduce the flow of paper coming in to their office. Many of my peers told me, ‘Yes, we are paperless now; but we are handling more paper than we ever have.’ I was determined to create an environment within our office to become as paperless as possible.”
The DocFinity Solution
Meadows contacted several different vendors to find a document management system, and chose DocFinity for its ease of use, flexibility, cost effectiveness, and the short turnaround time from planning through implementation. He had considered using a competing imaging provider that was specific to the insurance industry, but decided that DocFinity was a better fit. DocFinity software was able to address all of Panhandle’s needs at a much more competitive price, without losing any of the functionality that Panhandle required for their software solution. Panhandle is using the DocFinity Core, which includes both a scanning and imaging solution, as well as the IntraVIEWER® module. IntraVIEWER enables them to view and annotate their documents using standard internet browsers.
In addition to providing quick and easy access to clients’ files and improving their disaster recovery capabilities, Meadows anticipates that DocFinity will simplify Panhandle’s auditing process. State laws require regular auditing of insurance companies, and considerable man-hours are required to search for and locate the documents that auditors require. Now, auditors will have immediate, convenient access to electronic documents and images, eliminating the need to expend valuable company time and resources locating paper files.
©2007 Optical Image Technology, Inc. All rights reserved. DocFinity, IntraVIEWER, and XML FormFLOW are trademarks or registered trademarks of Optical Image Technology, Inc.
http://www.docfinity.com
ph: 814.238.0038
Panhandle is further streamlining efficiency by creating query-based retrieval so that agents can use DocFinity to view their files remotely. Agents will have access to only those policies and claims that they have written. Viewing of personal policyholder information—Credit Reports, Reinsurance Reports, Claim Work Forms, Medical Records, Attorney Letters, etc. — will be restricted.
Ultimately, Panhandle’s plan is to eliminate as much paper storage as possible in all business areas within the company. They will gradually expand their use DocFinity beyond storage of policy and claims files, and include invoices, documents for agents’ manual rates, agent and vendor contracts, and even board meeting minutes and information.
Integration
DocFinity integrates seamlessly with INSPRO™, Panhandle’s policy management system. When policies and claims are called up, employees have direct access into the documents using a VCR button. They can immediately choose which documents they wish to view without having to log in to DocFinity first.
Panhandle was able to transition to DocFinity shortly after DocFinity’s two-day training. Since they were able to integrate DocFinity with their existing system, employees had no new programs to learn and could continue to work within their familiar software environment. Overall, the process took about two months.
Return on Investment
Meadows is adamant that because the insurance business changes daily, it is imperative that small companies keep up with technology if they hope to survive and remain competitive. He elaborates, “It is extremely difficult for small companies such as Panhandle to remain profitable unless they have the tools in place to work efficiently.” Historically, the company’s expense ratio had been 46%-47% of its total volume. After Meadows assumed leadership, the company was able to reduce its expense ratio to 29% in 2004, which is extremely rare for a company their size. Meadows attributes this dramatic decrease to the fact that Panhandle is able to process more work without having to replace staff. By implementing DocFinity, his company is assured of maintaining this level of efficiency. Meadows says “DocFinity allows us to hold our expenses down and enables us to compete in the marketplace.”
In the future, DocFinity will continue to enable Panhandle to significantly reduce its file storage space. Employees are in the process of imaging active files and moving them out of the fireproof filing cabinets. Meadows researched a popular online auction site, where the average rate of resale for these cabinets is approximately $700. He anticipates that by selling their fireproof cabinets, Panhandle will recoup more than 90% of DocFinity’s cost.
Meadows discloses, “It’s a must that we keep up with technology. The DocFinity imaging system has brought us to the position that we want to maintain in the insurance industry. We are extremely satisfied with DocFinity.”
“We are extremely satisfied with DocFinity.”
Panhandle is further streamlining efficiency by creating query-based retrieval so that agents can use DocFinity to view their files remotely. Agents will have access to only those policies and claims that they have written. Viewing of personal policyholder information—Credit Reports, Reinsurance Reports, Claim Work Forms, Medical Records, Attorney Letters, etc. — will be restricted.
Article #2
Thinking Green: Document Imaging Gives Panhandle Farmers Mutual a Competitive Edge
DocFinity® Solution Advances Customer Service While Protecting The Environment
By Art Meadows, President/CEO, Panhandle Farmers Mutual Insurance
Imagine an insurance office devoid of clutter, with instant access to information whenever you need it...a world where applications, policy changes, and reinsurance transactions are paperless. Picture your company performing audits remotely, with pre-indexed information awaiting review. Envision revolutionizing your office and competing against larger insurers, offering services some have only dreamed about. This is possible, and more – document imaging and innovative thinking have changed our business model for the best at Panhandle, helping us become a role model for other small regional insurers.
Everyone knows insurance is highly regulated and competitive. Success requires controlling operating expenses, increasing efficiency and providing customer service that encourages current customers to remain loyal. Panhandle’s customer focus was why we invested in Optical Image Technology’s (OIT) DocFinity document imaging solution. DocFinity provides many options as we grow and change. Today, we see results that we previously deemed impossible, and we continue to partner with OIT in our quest for continual improvement.
Panhandle offers property and casualty insurance products designed to meet the needs of small rural communities in West Virginia, including dwelling, fire, allied lines, homeowners, farms, small commercial and liability coverage. Until recently, our processes were completely based on paper. In 2003, we had 22 fireproof four-drawer filing cabinets purely to store clients’ records and files. We decided to pave the path to future efficiency by adding document imaging from the DocFinity® suite of workflow and document management products offered by OIT. We already had Town & Country Compter Services’ INS PRO™ policy administration, accounts receivable, and premium/loss accounting system in place. The seamless integration of DocFinity’s imaging with INS PRO, as performed by OIT, enabled us to capture information over the Web and store and manage it in DocFinity. Web Services technology from OIT let us add capabilities, putting power at our staff’s fingertips without changing their work environment, and with minimal training.
Today, customers can locate agents, complete applications, add insured persons, submit claims, make payments, and more via our portal, which then pulls, indexes, and organizes the information within the DocFinity electronic storage repository for internal use. Agents also have access to underwriting guidelines, rates, endorsements, and relevant customer data customers that is stored in DocFinity. Remote access has made it possible to give secure access to people who are located all over the state. Turnaround time is faster, service is better, and we compete more effectively.
In addition to decreased expenses, we have eliminated filing cabinets and the paper that fills them. Forms that were customary yesterday are now electronic, as are the materials that were mailed. Each cabinet of paper that we avoid producing saves trees, paper, gas in shipping the paper, eventual destruction of files that would end up in a landfill, and more. Our original clients, the farmers of 1898, would be proud to see what we are doing for customers today, and glad to know we are saving trees and doing our part to promote a cleaner environment with products like DocFinity.
The good news is that you, too, can “think green” and make a difference in the world around you. With a robust imaging solution and the extended possibilities of workflow automation and web services, the possibilities for enhancing your efficiency are endless!
For more information about Panhandle Farmers Mutual Insurance and their use of DocFinity, visit
http://www.docfinity.com/customers/Panh ... urance.htm. To learn more about DocFinity solutions, contact Optical Image Technology at
info@docfinity.com or call 814-238-0038.
Real Results at Panhandle Postage costs decreased by 86%; 65% of applications & 80% of policy changes are completely paperless; reinsurance material, and reports are electronic; automatically indexed & filed declaration pages eliminated misfiling and loss; virtual Market Conduct exams are saving nearly $20,000; productivity is higher.
I hope this helps,
Art