Loss runs are vital documents that summarize a merchant’s historical insurance claims, giving funders insight into risk exposure and reliability.
In the MCA (merchant cash advance) and small-business funding space, these reports help validate the stability and dependability of a merchant before underwriting. Yet, handling them manually slows down the intake process.
Brokers must gather PDFs from multiple carriers, confirm completeness, and forward them to underwriting, a workflow that’s time-consuming and prone to error.
Heron automates intake for loss runs, capturing incoming documents from shared inboxes or portals, classifying them correctly, and feeding them into downstream workflows instantly.
The process turns what was once a multi-touch manual effort into a smooth, zero-friction operation. By reducing handoffs and standardizing document flow, Heron keeps pipelines moving at full speed.
Use Cases
- Capture emailed submissions: Loss run reports sent to intake inboxes are automatically detected and extracted for processing.
- Differentiate carrier formats: Heron recognizes layouts from major insurers, tagging each file appropriately for underwriting.
- Validate coverage dates: Extracted data allows the system to confirm that the report covers the full requested period.
- Bundle supporting documents: When brokers send loss runs alongside other insurance paperwork, Heron groups them into a single, clean packet.
- Route to underwriting queues: Cleanly identified and validated files go straight to underwriting without waiting for manual sorting.
- Trigger missing-info requests: If coverage gaps or missing months are found, the system automatically notifies the sender.
Each use case demonstrates how automated intake saves time, reduces miscommunication, and creates audit-ready records without repetitive effort.
Operational Impact
Automating intake for loss runs reshapes operational efficiency from the ground up.
- Speed: Loss runs are processed within minutes of arrival instead of hours.
- Accuracy: Metadata validation prevents misfiled or incomplete reports from reaching underwriting.
- Scalability: Intake handles spikes in volume with no additional staff.
- Consistency: Every file follows the same route, avoiding skipped steps or forgotten attachments.
- Transparency: Each processed report carries timestamps and traceable routing records for compliance audits.
Together, these gains translate into faster underwriting readiness and greater confidence in data integrity.
Automation Flow and Document Handling
Heron’s intake automation follows a precise flow designed for financial document reliability.
- Email or portal ingestion: Reports are captured directly from inboxes or upload forms.
- File classification: Heron identifies the file as a loss run and distinguishes it from other document types, such as policies or certificates.
- Completeness verification: The system checks whether the report covers all requested months and policies.
- Normalization: Files are renamed and stored in consistent naming conventions, simplifying downstream tracking.
- CRM linking: Parsed files attach automatically to the correct merchant or case record.
- Queue routing: Fully processed packets move to underwriting or review queues depending on confidence level.
The end result is a fast, reliable pipeline where every loss run finds its proper destination without human sorting.
Data Accuracy and Risk Validation
Loss runs hold valuable details about claims, payouts, and coverage gaps. Heron ensures these details are handled accurately.
- Claims extraction: Claim counts, amounts, and closure statuses are parsed from structured and semi-structured layouts.
- Coverage validation: Heron verifies that coverage periods align with stated policy ranges, flagging any mismatches.
- Historical comparisons: When new loss runs arrive, Heron compares them with previous ones to detect discrepancies or missing updates.
- Anomaly detection: Unusual spikes in claim frequency or large single losses are surfaced to underwriters automatically.
Automated validation keeps underwriting focused on decisions instead of document cleanup.
Cross-Team Collaboration
Automating loss run intake supports faster coordination between brokers, underwriters, and risk analysts.
- Immediate visibility: Underwriters can view validated reports the moment they’re processed.
- Eliminated back-and-forth: Brokers no longer resend or confirm files manually.
- Unified document repository: Every intake file lives in one searchable, consistent system.
- Faster decision readiness: Teams can assess risk faster because all data arrives structured and reviewed.
Collaboration improves when everyone trusts the accuracy and timeliness of the incoming data.
Performance and Reporting Metrics
Loss run intake automation introduces clear, measurable KPIs.
- Turnaround time: The time between document arrival and CRM attachment decreases by more than 70%.
- Exception rate: Fewer than 5% of reports need manual review once classification stabilizes.
- Data accuracy: Field extraction accuracy exceeds 95% for recognized formats.
- Queue efficiency: Intake queues process three times as many reports per hour compared to manual operations.
- Cost savings: Reduced labor and fewer back-and-forth emails cut operational costs significantly.
Teams can benchmark improvements directly against their pre-automation baselines to quantify impact.
Implementation and Configuration Tips
To get the most from automated loss run intake, proper setup is key.
- Define target inboxes: Route all loss run submissions to dedicated shared inboxes for consistent capture.
- Map carrier formats: Train Heron on high-volume insurer layouts to improve classification accuracy.
- Validate CRM fields: Make sure extracted coverage dates and claim totals map cleanly to the CRM schema.
- Set routing confidence thresholds: Balance automation speed with review control by defining acceptable accuracy levels.
- Audit early results: Spot-check initial outputs weekly to confirm data integrity.
With these practices, teams can scale automation confidently and expand into related insurance documents over time.
Compliance and Security Controls
Loss run data often contains sensitive claim details. Heron processes these under rigorous compliance standards.
- SOC 2 Type II controls: All data is encrypted in transit and at rest.
- Access logging: Every user interaction is tracked and timestamped.
- Redaction capabilities: Sensitive claim identifiers can be hidden when exporting reports.
- Retention policy alignment: Heron retains loss run data according to financial and insurance document requirements.
This compliance-first approach supports both data safety and audit readiness.
Business Outcomes
By automating loss run intake, Heron turns a tedious, manual task into a predictable and measurable operation.
- Improved broker satisfaction: Faster responses build stronger broker relationships.
- Shorter funding cycles: Clean intake accelerates underwriting, directly reducing decision times.
- Operational transparency: Managers can monitor queue health and identify bottlenecks.
- Better data hygiene: Clean, consistent CRM records eliminate redundant or inaccurate reporting.
Each of these outcomes compounds over time, creating a smoother and more scalable lending pipeline.
Benefits of Using Heron for Intake of Loss Runs
- Speed: Automated intake eliminates waiting times and manual forwarding.
- Accuracy: Smart classification and field validation catch missing or incorrect data early.
- Consistency: Every submission follows the same process, producing predictable results.
- Scalability: The system handles spikes in submissions without delays.
- Compliance: Built-in security and traceability meet regulatory requirements.
Heron creates a foundation of clean, reliable data that speeds underwriting while reducing overhead.
FAQs About Intake for Loss Runs
How does Heron detect and process loss runs automatically?
Heron identifies loss run attachments through keyword recognition, file layout detection, and pattern-based parsing. Once detected, the system validates coverage periods, renames the files consistently, and routes them to the correct merchant record.
What happens if a loss run report is incomplete or outdated?
Heron flags incomplete coverage or missing pages immediately. The system sends an automatic missing-info request to the broker, ensuring a full and valid packet before underwriting.
Can Heron handle loss runs from multiple insurance carriers?
Yes. Heron is trained on diverse carrier templates and uses flexible classification logic. It can detect insurer-specific layouts and adapt parsing logic for consistent output.
How secure is the intake process for loss runs?
Heron processes all files under SOC 2 Type II standards, with encryption, access logs, and strict permission controls. Only authorized users can view or export sensitive claim details.
How much time can teams save using Heron for intake?
Teams typically cut loss run intake and validation time by over 80%. What once took hours across multiple staff members now completes automatically within minutes.
