Why the Insurance Industry Prefers Human Transcription Services over AI

Why the Insurance Industry Prefers Human Transcription Services over AI
Beth Worthy

Beth Worthy


About 5,929 insurance companies with 2.86 million employees write well over $1.4 trillion in net premiums in the U.S. annually.

Their essential role in society is clear-cut—providing coverages to individuals and businesses for financial protection against unforeseeable misfortunes, from accident liabilities and property damage or theft to lawsuits and ill health.

When paying a claim, adjusters and claims managers must move quickly with investigations to ensure fairness to all parties.

But insurance fraud, which amounts to $308.6 billion a year, can throw a spanner in the works, creating a need for thoroughness with claims investigations.

With human-based insurance transcription, insurers can fast-track the claims process and use the transcripts to collaborate on investigations efficiently.

Why Does the Insurance Industry Prefer Human Transcription?

The unavailability of a vital statement transcript can delay critical parts of the claims process. So, it’s easy to lose patience and resort to artificial intelligence (AI) instead of human-based insurance transcription.

Given the tremendous advancements in AI-powered speech recognition tools in the past decade, nothing could go wrong with bots, right?

Far from it! In applications where near 100% transcription accuracy is non-negotiable for reputational or legal purposes, AI transcripts are essentially a big no. Major industries like insurance don’t trust machine-generated transcripts for reasons such as:

  • AI transcripts are often error-prone, unreliable, and often require costly rework.
  • AI bots lack the human capacity to grasp different accents and dialects correctly.
  • There are genuine privacy concerns with bots, especially against data compliance and the sensitive nature of insurance processes like claims.

Also Read: Why Do Insurance Firms Require Transcription Services?

10 Reasons Why Human Transcription Is Still the Go-to for Insurers

Reasons why the insurance industry still prefers human transcription services to AI include the following:

1. Accurate Transcription

Whether you’re transcribing to aid an insurance probe or quickly generate a summary report, you can count on human transcriptionists every time. It’s essential for getting an accurate and precise account of all facts captured in recorded interviews or phone conversations.

To date, no technology beats humans when recognizing and correctly interpreting non-verbal cues and interjections in speech.

2. Ability to Resolve Background Noise

Human transcribers can easily filter out any background noise, which is usually a “confusing” task for AI transcription software. This natural ability is vital for insurance transcription accuracy and relevance.

As you’d know, recorded or phone conversations with claimants or witnesses don’t always occur in ideal, serene conditions. A human transcriptionist will look for detail to identify irrelevant sounds, voices, or people talking nearby. It enables them to only capture relevant parts of the speech in the final transcript.

3. The Need to Produce Reliable Insurance Transcripts

Insurance investigation transcripts may add little value to the claims process when they are accurate. They’re particularly unreliable in contested claims, whether in or out of court.

Well-trained and specialized transcriptionists remain the best option for insurers as they can perfectly transcribe data and interview recordings. This way, they produce trustworthy documents that meet the strict accuracy standards associated with legal processes in insurance.  

4. We Need to Pick Out Distinct Accents and Dialects

Most AI tools don’t have sufficient training to pick out different accents and dialects in speech. Experienced human transcribers don’t have this problem. They can correctly distinguish multiple speakers in an audio recording, including when speaking over each other.

A good human transcriptionist can quickly detect mispronunciations by speakers with a thick accent.

5. Fact-Checking Done for Content

Human-based insurance transcription often involves rigorous quality control. Fact-checking is essential as it eliminates mistakes that could distort facts in a claim or report.

It also removes the need to re-do a transcript--an unnecessary undertaking that can take more of your time and derail an ongoing insurance probe.

6. Need to Transcribe Technical and Business-Specific Insurance Recordings

Unlike AI, specialized human transcriptionists will always understand the context of any recording and proceed accordingly. In the case of insurance transcription, they can decipher and skillfully transcribe any technical or industry-specific jargon.   

7. Efficient File Organization for Quick Reference

When you transcribe an interview with a claimant or recorded testimony, it helps you to organize your claims files for easier reference.

Human transcribers can lend a hand in this effort by delivering a high-quality, complete statement. Whether verbatim or not, an accurate transcript with no small but essential details missing makes it easier to put together all the information you need in one place.

8. Enables Easy Transferring of Files Between Departments

Insurance claims processing involves various departments and personnel, from lawyers to adjusters. Workflow and collaboration between the different teams go much smoother and more accessible with accurate and sharable digital transcripts. Human transcriptionists can be instrumental in streamlining and moving the work process faster.

9. Time Savings for Adjusters

There’s no arguing that transcripts of recorded insurance statements are more manageable to scrutinize than audio or video recordings. It takes a relatively shorter time for adjusters to look up and understand even the most minor case details in the text documents.

Also, because human-transcribed transcripts don’t usually require rework, adjusters can focus their time and other resources on their everyday insurance work.

Also Read: 5 Major Perks and Uses of Insurance Transcription Services

GMR Transcription: Your One-Stop Solution for Insurance Transcription Services

The indispensability of human-based insurance transcription is unquestionable despite the advent of AI-generated transcripts.

At GMR Transcription, our well-trained human transcriptionists lead the way in providing top-quality, 99% accurate insurance transcripts. They’re all US-based and boast perfect command of English—an essential for transcription accuracy.

Not only do we sign confidentiality agreements with clients, but we also utilize SSL-encrypted servers to maintain the privacy of your sensitive files.

We provide insurance transcription services for various recorded insurance investigations and reports. These include:

  • Property damage
  • Theft claims
  • Recorded claimant/witness statements
  • Casualty
  • Holdings and assets
  • Insurance probes and summary reports  

Our main transcription service options include the following:

  • Strict verbatim (transcripts include false starts like ums and ahs)
  • Intelligent verbatim (human transcriptionist uses discretion to leave out false starts and irrelevant utterances)

Please register now to explore more and learn about our transcription services. 

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Beth Worthy

Beth Worthy

Beth Worthy is the Cofounder & President of GMR Transcription Services, Inc., a California-based company that has been providing accurate and fast transcription services since 2004. She has enjoyed nearly ten years of success at GMR, playing a pivotal role in the company's growth. Under Beth's leadership, GMR Transcription doubled its sales within two years, earning recognition as one of the OC Business Journal's fastest-growing private companies. Outside of work, she enjoys spending time with her husband and two kids.