Modernizing Automation in Insurance Toward a Paper-Free Future

Despite growing investments in digital transformation, many insurers still rely on paper-based workflows. From legacy systems and compliance concerns to aging customer bases, the road to modernization has been slow and uneven. Frank Eubank, CEO of LenderDock, offers a candid look at why paper persists—and how insurers can finally move past it.

Why Insurance Still Relies on Paper and the Challenges It Creates

“I think one of the primary reasons insurance carriers have been so reliant on paper for so long is due to the industry being so deeply rooted in everything from regulatory requirements and compliance to legacy systems,” Eubank explained. Processes like claims handling, underwriting, and policy issuance involve multiple parties, signatures, and compliance checks—many of which have historically required physical documentation for legal or audit purposes.

In addition, customer preferences play a role. “A significant portion of the customer base—especially in commercial and life insurance—is older and still prefers or expects paper-based communication,” Eubank said. But the cost of staying on paper is high. Eubank highlighted several major challenges for carriers:

• Operational inefficiency: Manual processes are slow and prone to error.
• High costs: Storing, mailing, and managing paper adds up quickly.
• Data fragmentation: Paper documents are unstructured and hard to integrate into digital systems.
• Poor customer experience: Clients expect digital-first interactions, and paper often falls short.

Practical Steps Toward Paper-Free Workflows for Insurers

While a full transformation may seem daunting, insurers don’t need to overhaul everything at once. “Start with high-impact areas where paper slows down operations—like claims intake or third-party notifications,” Eubank advised. From there, build momentum by introducing simple digital solutions including:

• Replace paper forms with online applications.
• Adopt secure electronic signature tools like DocuSign.
• Use OCR (optical character recognition) to digitize incoming documents.
• Train staff and customers to support the transition away from paper.

How Carriers Can View Automation as an Ecosystem for Future-Proof Operations

To truly future-proof operations, Eubank encourages insurers to think of automation as a long-term ecosystem—not a one-time project. “Start by promoting cross-functional collaboration—get operations and business leaders working together to prioritize automation that serves shared goals,” he said.

He also recommends a modular approach, where carriers implement flexible, plug-and-play components—like for claims triage or fraud detection—without disrupting their core systems. Artificial intelligence (AI) and machine learning can also help automate decision-making in areas like risk scoring, customer service, and document classification—particularly when integrated into modern systems. “Lastly, it’s about leveraging APIs and web services within a cloud environment,” Eubank said. “That kind of architecture ensures any future tools can integrate easily and support a land-and-expand strategy.”

Visit LenderDock.com to explore how insurers can streamline workflows and reduce paper dependency with digital verification and automation solutions.