At AM Specialty Insurance Co. in Dallas, Texas, Nishad Lad is leading a significant change in how the company processes claims. As the head of data and software development, he is introducing new technologies aimed at improving efficiency and accuracy in claims handling.
Lad and his team have rolled out a new tool called the Automated Claims and Premium Bordereaux Processor. This software uses natural language processing (NLP) to read and organize data from insurance documents automatically. They are also working on a system that can classify claims based on their loss descriptions, which will help identify the correct Annual Statutory Line of Business (LOB) Code when it isn’t reported.
Lad explained that the bordereaux processor addresses inconsistencies in how different companies report data. Since various firms use different formats and terminology, this can lead to confusion and errors. The new system aims to standardize data capture and interpretation, making the process smoother.
For the LOB code identification, the goal is to eliminate the need for manual classification of claims. By understanding unstructured loss descriptions, the system can predict the relevant LOB code, which should speed up processing times and improve accuracy.
So far, the results are promising. Early tests of the bordereaux processor showed an impressive accuracy rate of 96.76%. Users reported being able to process a document in about four minutes, depending on the amount of data. The LOB code identification system is still in the early stages, but the team is hopeful it will reach similar accuracy levels.
Employees at AM Specialty are responding positively to these changes. Many feel excited and optimistic about the new technology, which helps reduce repetitive tasks and enhances overall efficiency.
Lad expressed enthusiasm about the potential of these projects to change claims processing. He highlighted the importance of maintaining high accuracy rates and reducing the time spent on manual tasks as key measures of success. The company will also track improvements in employee productivity and the adoption of these new systems across the organization.
This initiative represents a significant step forward for AM Specialty Insurance as it embraces technology to streamline operations and better serve its clients.