Small mistakes can add up to big costs – and when it comes to insurance invoices, not all mistakes are small. To err is human, as they say. Unfortunately, every overlooked error and fraudulent charge can cut into your profits. AI-powered invoice auditing is the solution.

‍

Oversights Add Up to Big Overpayments

Imagine you’re reviewing a stack of invoices. You need to check each line item of every invoice against a set of pre-established rules to validate that charges comply with vendor contract terms. You may also need to verify claim status, geographic location of service delivered, quantity of services delivered, sufficient documentation and more. The list goes on and on. You need to make sure every detail is right to avoid a potential overpayment. 

You also need to check for artificial inflation and fraud. According to the Coalition Against Insurance Fraud, insurance fraud results in losses of at least $308.6 billion each year, and it occurs in approximately 10% of all property and casualty insurance losses. 

Billing errors from independent adjusting (IA) firms are often overlooked, yet, we’ve found that roughly 77% of invoices from IA firms contain errors. These errors are often not intentional - afterall, they are human too. The most common violations include:

• Charging more than the contractually-allowed time for phone calls, emails or other file handling activities.

• Charging more than the contractually-allowed time for report preparation.

• Overcharging for scene inspection and travel.

‍

There Simply Aren’t Enough Hours in the Day

To spot mistakes and fraudulent charges, insurance professionals need to dot every i and cross every t. There’s just one problem. Insurance professionals are already spread too thin, and there are only so many hours in a day. 

Different IA firms and contractors may have different contractual terms, and comparing invoices to each company’s allowable charges takes a lot of time. Mistakes tend to slip through the cracks, but fortunately, there’s a smart solution. With AI-powered invoice auditing, insurers can shave 10-15% off every invoice on average.

‍

AI-Powered Invoice Auditing Excels Where Humans Don’t

Humans are good at using creativity and applying values. AI is good at processing massive amounts of data and spotting anomalies. When you use AI-powered invoice auditing to support human insurance professionals, you’re getting the best of both worlds.

Insurers can define their own compliance criteria using customized business rules. AI applies your compliance rules to every line item of every invoice. Potential overcharges are instantly  identified. For most invoices, no additional work will be needed. Automated workflows can direct error-free invoices to be paid, and can return invoices with errors to the vendor for correction. However, in some cases, AI will flag issues that require human review.

This automation drastically reduces your team’s workload and gives them more time to focus on the flagged invoices that require more judgment.

‍

Support Your Team with AI Invoice Auditing

To control costs, insurers must improve fraud and overcharge detection while giving team members the support they need to thrive. With AI invoice auditing tools, this isn’t just possible – it’s a piece of cake. Book a demo to learn more>