High NIGO (Not-in-Good-Order) rates are more than just operational headaches—they're profit drains that create a domino effect throughout the entire insurance ecosystem. These issues frustrate distributors, agents, and policyholders while straining carriers' internal resources and bottom lines.

Issues Caused by High NIGO Rates

Producer Challenges

For producers, NIGO issues introduce unnecessary complications in client interactions, often requiring redundant paperwork that can jeopardize potential sales. This inefficiency not only risks losing clients to more agile competitors but also strains producer-carrier relationships.

Carrier Challenges

For carriers, NIGO applications result in additional expenses and consuming critical underwriting resources. These delays not only slow down premium collections but also jeopardize carrier’s brand perceptions with producers and policyholders, which can influence retention and market share.

Policyholder Challenges

For policyholders, NIGOs can create a poor first impression and lead to buyer’s remorse. This gives potential clients a window to reconsider their options or seek alternatives, potentially increasing churn rates.

Resolving NIGO Rates with Intelligent Document Processing

Intelligent Document Processing (IDP), along with Dynamic Rules Engine, offers a powerful solution to the NIGO problem. By leveraging solutions like Neutrinos, insurers can significantly reduce NIGO rates and streamline the application process through:

• Automated Document Segmenting: Eliminate manual processing with intelligent document classification capabilities, ensuring documents are correctly categorized and routed.
• NIGO Management: Implement comprehensive NIGO identification, prevention, and remediation from quote to policy issue, catching potential issues before they become problems.
• Intelligent Rules Engine: Streamline the application process using Neutrinos' Intelligent Rules engine for automated document processing, reducing human error and speeding up workflows.
• Reflexive Forms: Reduce errors with smart, reflexive digital forms that collect, verify, and consolidate data points, ensuring accuracy from the start.
• Automated Follow-ups: Automatically trigger follow-up actions for pending cases, keeping the process on track and ensuring timely resolution of outstanding issues.

The implementation of intelligent automation can completely transform the insurance process, delivering significant benefits across the board:

• Producers: Close deals faster with streamlined workflows.
• Carriers: Reduce operational costs, improve cycle times, and enhance brand perception.
• Policyholders: Receive coverage promptly without frustrating delays.

Insurance Operations Made Easier

Intelligent automation can revolutionize insurance operations, making the entire process smoother and more efficient. The following outcomes can be visibly observed and quantified:

• Simplify document segmenting: Ensure that documents are correctly categorized and routed.
• Accelerated document processing: Speed up workflows with automated classification and routing.
• Enhanced case resolution: Streamline applications to minimize delays and errors.
• Streamlined communication: Automate follow-ups, ensuring smooth and timely case progression.

Intelligent automation has led to reduced NIGO rates, higher STP, and lower cost of underwriting. With the adoption of intelligent automation, insurers can provide a seamless experience, guarantee customer satisfaction, and ultimately stay ahead of the competition.

About the Author:

• Divyajot Singh,
• Product Marketing Head,
• Neutrinos.