Simplifying ACORD Forms: How to Automate Insurance Data Processing

What are ACORD Forms?

ACORD forms are standardized templates used extensively in the insurance industry to define the specifics of insurance policies. Developed by the Association for Cooperative Operations Research and Development (ACORD), these forms provide a uniform format that simplifies the communication and exchange of insurance data. They ensure that carriers and brokers can efficiently share and understand policy information without discrepancies.

3 Main Reasons Why ACORD Forms Are Important

1. Standardization

They create a uniform structure for insurance documents, making it easier to interpret and compare policies across different carriers and brokers.

2. Efficiency

By using standardized forms, data can be shared quickly and accurately, reducing the time spent on data entry and minimizing the risk of errors.

3. Clarity

These forms ensure that all necessary information is included, reducing the chances of miscommunication and omissions that could lead to policy disputes.

Numbering of ACORD Forms

ACORD forms are systematically numbered to denote their specific use. For example, ACORD form 25 is designed for business insurance. This numbering system helps users quickly identify the appropriate form for their needs, ensuring that all relevant information for a particular type of insurance is captured effectively.

How to Access ACORD Forms

To access ACORD forms, you need to go through the ACORD organization. These forms are not freely available and require a subscription or membership. This ensures that users receive the most current and compliant versions of the forms. To begin, visit the ACORD website and explore the Forms section to understand the different types of forms available and their specific uses.

Once you decide to subscribe, you will need to register on the ACORD website. The registration process involves providing your organization's details, selecting the desired forms, and completing the payment process. 

Membership options vary based on the type and size of your organization, ranging from individual brokers to large insurance carriers.

How to Analyze Acord Forms

Analyzing ACORD forms is a critical task for insurance carriers. When an insurance carrier receives an ACORD form from a broker for a potential customer's existing insurance policy with another carrier, they need to extract and evaluate the information to generate a competitive quote. 

Here is a detailed breakdown of how this process typically unfolds:

1. Receiving the ACORD Form
   • The carrier receives the ACORD form, often via email or an online submission from a broker or directly from the customer.
   • The form contains comprehensive details about the customer's current insurance coverage, including policy limits, covered assets, and any endorsements or exclusions.
2. Manual Review
   • A staff member manually reviews the ACORD form, reading through each section to gather the necessary information.
   • This review includes verifying the customer’s personal information, the type and scope of coverage, and any special conditions or endorsements that may apply.
3. Information Extraction
   • Key data points are identified and extracted from the form. These include coverage amounts, policy limits, effective dates, deductibles, and any special terms.
   • This extraction process is meticulous and requires a keen eye for detail to ensure no critical information is overlooked.
4. Data Entry
   • The extracted information is then manually entered into the carrier's internal systems, such as their Customer Relationship Management (CRM) system or a quoting platform.
   • Accurate data entry is crucial to generate a precise and competitive quote. Any errors or omissions can lead to incorrect quotes or even policy rejections.
5. Quote Generation
   • Once the information is entered, the carrier uses it to calculate a new insurance quote for the potential customer.
   • This involves assessing the risk, applying relevant rates, and considering any discounts or additional coverage options that might be available.
6. Review and Communication
   • The generated quote is reviewed by an underwriter or a sales representative to ensure it meets the carrier’s standards and the customer's needs.
   • The final quote is then communicated to the customer, often through the broker, along with any recommendations for adjustments or additional coverage.

Challenges of Manual Analysis

• Time-Consuming

Manual review and data entry are labor-intensive and time-consuming processes. They require significant staff resources, which could be used more effectively elsewhere.

• Error-Prone

Human errors in reading, extracting, or entering data can lead to inaccurate quotes, policy discrepancies, and potential customer dissatisfaction.

• Inefficient

The manual process can slow down the response time, making it harder to compete with carriers that have more streamlined systems.

Automating ACORD Form Analysis with Feathery

To address these challenges, Feathery’s Document Intelligence solution offers a powerful alternative by automating the extraction and processing of data from ACORD forms. This automation improves efficiency and accuracy, enabling carriers to handle more quotes with fewer resources and reduced error rates. 

Here’s how Feathery can help:

1. Upload or Email: Users can either upload an ACORD form to Feathery’s platform or forward an email containing the form.
2. Data Extraction: Feathery’s technology automatically extracts all relevant data from the form, eliminating the need for manual data entry.
3. Data Distribution: The extracted data can be sent to various platforms, including:
   • CRM Systems: For instance, Salesforce, ensuring seamless integration with customer management processes.
   • Agency Management Systems: Like Epic and Vertafore, enhancing agency operations.
   • Quoting and Rating APIs: Facilitating the generation of accurate insurance quotes.

Why Feathery Is the Perfect Solution for Brokers and Carriers

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Feathery's solution transforms the traditional approach to handling ACORD forms, offering a modern, automated alternative that benefits both brokers and carriers by enhancing efficiency and accuracy.

For Brokers

Automation of Carrier-Specific PDFs and Portals

• Feathery automates the filling of application PDFs required by different carriers.
• It ensures that data from ACORD forms is accurately transferred into the carrier's template.
• This automation reduces the manual effort required to complete carrier-specific forms.

Correct Formatting and Submission

• Feathery ensures that data extracted from ACORD forms is correctly formatted to meet each carrier's specific requirements.
• This eliminates the risk of errors due to formatting inconsistencies.
• Brokers can confidently submit forms knowing they meet carrier standards.

Time Savings

• Automation speeds up the entire process of form filling and submission.
• Brokers can handle more clients and policies in less time.
• This efficiency allows brokers to focus on other critical tasks, such as customer service and policy management.

Error Reduction

• By automating data extraction and entry, Feathery minimizes the chances of human error.
• Accurate data submission reduces the likelihood of policy rejections or delays.
• Brokers can maintain higher accuracy in their submissions, improving overall reliability.

For Carriers

Streamlined Data Reception

• Feathery provides a seamless method for carriers to receive data from ACORD forms.
• It integrates smoothly with existing carrier systems.
• This streamlining enhances the overall efficiency of data handling.

Reduction in Manual Workload

• Carriers no longer need to manually extract and enter data from ACORD forms.
• Feathery automates this process, freeing up staff for other tasks.
• This reduction in manual workload leads to significant time savings and productivity gains.

Increased Accuracy in Data Handling

• Automated data extraction ensures that all relevant information is captured accurately.
• This increases the precision of the data entered into carrier systems.
• Accurate data handling improves the reliability of quotes and policy information.

Enhanced Integration with Carrier Systems

• Feathery’s solution integrates with various carrier systems, including CRMs and quoting APIs.
• This integration ensures that data flows smoothly from ACORD forms into the carrier’s workflows.
• Carriers can maintain consistent and accurate data across their operations.