Pet Insurers Processing Claims Faster with Data Extraction Technology
By SortSpoke
Pet Insurers Processing Claims Faster with Data Extraction Technology
TL;DR
- Market Growth: Pet insurance premiums reached $2.6 billion in the U.S. (30% YoY growth) and are projected to exceed $3.8 billion by 2027
- The Challenge: Pet insurance claims are labor-intensive—adjusters manually review policies and rekey data from PDF submissions
- The Solution: SortSpoke's intelligent document processing extracts data from complex pet insurance invoices with human-in-the-loop validation
- The Result: Up to 80% reduction in data extraction effort while maintaining 100% accuracy
Last year the total premium volume for pet insurance in the U.S. was nearly $2.6 billion, a 30.4% increase over the previous year.
This growth was due to various factors, such as an increase in pet adoptions during the pandemic, employees working from home, and employees asking their employers to offer pet insurance as a voluntary benefit.
Today, many insurers view pet insurance as an untapped market. By 2027, Graphical Research estimates that the North American pet insurance market will surpass $3.8 billion in revenue.
A Delicate Balancing Act: Writing More Business vs. Higher Claims Volumes
As carriers look to increase their market share in the pet insurance space, they must also perform a delicate balancing act between writing more business and managing increasing claims volumes.
One of the challenges with pet insurance claims is that they are very labor-intensive. The typical claims cycle involves adjusters manually reviewing policy information and rekeying data from claims submissions (PDF format) into in-house systems.
To combat these issues, carriers have two choices: hire more adjusters (which significantly increases expenses) or utilize solutions such as intelligent document processing.
Intelligent Document Processing (IDP)
Technology that leverages machine learning to extract information from documents, freeing up adjusters from manual tasks like pulling data from PDFs. Unlike traditional OCR, modern IDP handles highly varied and unstructured documents.
However, while many IDP solutions do an exceptional job of extracting data from structured documents, they weren't built to pull data from highly varied and unstructured documents like veterinary invoices.
ML + Humans in the Loop = 100% Data Accuracy
Unlike traditional intelligent document processing solutions, SortSpoke specializes in extracting information (data in textboxes, tabular data, etc.) from highly varied and unstructured documents like pet insurance invoices.
SortSpoke does this through a combination of proprietary ML models and humans in the loop to ensure 100% data quality. Once SortSpoke extracts information from documents, adjusters review and approve the data pulled.
80% Reduction in Extraction Effort
If it takes someone 4-5 minutes to review a document and extract 25-30 pieces of information, SortSpoke can decrease the effort required by approximately 80%.
For every document processed, SortSpoke's ML is watching and learning. Within a short amount of time (in as little as 10 training pieces), SortSpoke will start building out its algorithm and model on the fly and will continually update after every document and interaction.
Once the information has been approved, SortSpoke eliminates unnecessary keystrokes by automatically exporting data into structured documents or pre-filling it into in-house systems using one of our RPA partners.
A Force Multiplier for Your Pet Insurance Claims
As carriers look to increase their market share in the pet insurance space, a key component to attracting and retaining customers will fall upon the claims handling experience.
SortSpoke's cloud-based data extraction platform is used by insurance carriers and MGAs who need help turning medical, financial, policy, and other highly complex and unstructured documents into data.
Customer Success: SCM Insurance Services
See how SortSpoke helped SCM Insurance Services accelerate their claims cycle times via automation, achieving an 80% reduction in claims setup effort.
Key Takeaways
1
Pet insurance is a high-growth market, but claims processing remains labor-intensive
2
SortSpoke's human-in-the-loop AI handles the complexity of veterinary invoices with 100% accuracy
3
Reduce extraction effort by up to 80% without adding headcount
Ready to Accelerate Your Claims Processing?
Book a personalized demo to see how SortSpoke can help your pet insurance operation process claims faster. Or use our ROI calculator to estimate your potential savings.
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