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Validating supplier COIs is widely recognized as an inefficient process. It often feels like it takes an eternity to complete all the necessary steps, starting with requesting a supplier's COI and concluding with verifying that the insurance meets or exceeds minimum coverage requirements. This waiting game causes headaches for everyone involved.
COI tracking is not only time-consuming but also labor-intensive. The process involves multiple steps, including requesting COIs, extracting coverage data, comparing that data to contractually defined insurance requirements, and determining compliance status.
Vertikal’s proprietary Hawk-I technology enables rapid and accurate validation of supplier insurance certificates. Hawk-I extracts essential information from ACORD Form Certificates of Insurance (COIs), including dates, coverage types, coverage amounts, and checkboxes. Additionally, Hawk-I interprets the free-form language in the description of operations section of the certificate, extracting pertinent information that is crucial for compliance determination.
By organizing all important data from a COI into a structured format, Hawk-I allows for immediate comparison with coverage requirements, facilitating swift compliance assessments without the need for manual review of the COI document. This straight-through process ensures that the entire COI review is completed within seconds of receipt!
This significant increase in speed greatly improves the previously laborious and inefficient process of collecting and evaluating compliance for Certificates of Insurance.
Enhances Risk Management
Rapid reviews of Certificates of Insurance allow you to identify potential gaps in coverage promptly, ensuring you stay ahead of potential risks before they become problems.
Enhances Visibility and Informed Decision-Making
The tracking system will provide real-time updates on the insurance status of your supply base. This allows for more informed business decisions, such as whether to engage or refrain from engaging a supplier, or to hold or release payment to a subcontractor, all based on accurate information.
Eliminates False Compliance Statuses Caused by Processing Delays
Diligent suppliers regularly send updated certificates to address deficiencies and advise of coverage renewals. Delays in processing newly received COIs leads to the tracking system displaying outdated compliance statuses, such as showing an entity as compliant when it is actually non-compliant, or vice versa.
Improves Supplier Onboarding
Certificates of Insurance (COIs) must be collected and reviewed for insurance coverage acceptability before finalizing onboarding approval and before commencing any business activities. Faster approval of COIs accelerates the onboarding process, allowing business activities to begin sooner and enhancing the satisfaction of all parties involved.
Improves Supplier Relationships
Instantaneous reviews from straight-through Certificate of Insurance (COI) processing mean that suppliers are immediately informed whether their newly uploaded COI meets the requirements for providing proof of insurance coverage. Suppliers value these immediate COI reviews and compliance determinations, as it allows them to quickly move on to other activities.
Leads to More Effective Agent/Broker Engagement
Producers of Certificates of Insurance (COIs) receive immediate feedback on whether the documents they upload are compliant. If a newly uploaded COI does not meet compliance standards, they are promptly notified, enabling them to make the necessary adjustments to address any deficiencies. As a result, agents and brokers no longer have to wait to determine the compliance status of the COI.
Lowers Processing Costs and Saves Time
The straight-through processing of Certificates of Insurance (COIs) has removed the need for manual evaluations. This approach not only speeds up the review process but also improves the consistency of how reviews are conducted. Vertikal provides its clients with the flexibility to choose how they utilize straight-through processing. Some clients may prefer to use it for all incoming COIs, while others might opt to combine manual reviews with straight-through processing based on the types of vendors or specific requirements.
Eliminates Backlogs Caused by Periods of High Volumes of Incoming COIs
Hawk-I addresses the challenges of document backlogs and delays that occur during periods of high incoming Certificate of Insurance (COI) volume. Each year, there are surges in COI submissions, particularly right after the end of calendar quarters, which coincide with common renewal dates: January 1st, April 1st, July 1st, and October 1st. These spikes in volume can strain resources, leading to backlogs and extended processing times for certificates. This situation can negatively impact supplier relationships and increase the likelihood that the tracking system does not reflect the most current policy information, as documents remain pending for processing.
By utilizing Hawk-I, organizations can effectively manage this issue, as it enables the review of documents and updates to compliance status at speeds significantly faster than manual reviews. With Hawk-I, the backlog of COIs requiring processing is eliminated.
Can Be Used for Evaluating Other Insurance and Non-Insurance Documents
Hawk-I is a tool designed for evaluating both insurance and non-insurance documents. The AI model used in Hawk-I for managing Certificates of Insurance (COIs) can also automatically extract and review a variety of other documents. Any documents from business partners that require information validation are perfect candidates for a streamlined review process with Hawk-I. This will save your organization both time and money.
Navigating the complexities of Certificates of Insurance (COIs) can be challenging. With Hawk-I, straight-through processing becomes a reality. This innovative technology speeds up COI reviews while enhancing accuracy. All participants in the COI process will benefit, leading to improved supplier relations. The long-held goal has been to achieve straight-through processing of COIs, eliminating the need for manual reviews of each document. We are excited to be at the forefront of COI evaluation technology, ensuring our clients have the best COI tracking service and system capabilities available in the marketplace.
See how Hawk-I can transform your approach to 3rd party risk management.
Contact Vertikal today or email marketing@vertikalrms.com to schedule a live, free demo of Certfocus and to receive a proposal for the CertFocus system and services. Discover the difference that Hawk-I straight-through COI evaluation can make for your business.
