Banking procedures require that a property (house or apartment) be covered by appropriate property insurance. Therefore, the client is obligated to present a valid insurance policy that must meet the bank’s specific formal and financial requirements.

In practice, each of these policies was manually reviewed by PKO BP employees to ensure it complied with loan conditions. Key elements subject to verification included:

• the insured amount (whether it matches the property’s value),

• the scope of insurance coverage (e.g., fire, flooding, mechanical damage),

• the property owner’s information,

• policy number and validity dates,

• insurer details,

• mortgage loan number compliance,

• clauses assigning rights from the policy to the bank.

In total, 15 data fields had to be correctly transcribed and verified against the data in the bank’s systems and the loan agreement. This process was manual, error-prone, and time-consuming.

The bank processed over 2,000 policies daily, requiring the involvement of more than 60 operations staff. This extended the time needed for document evaluation, negatively affected customer service time, and generated significant operational costs. Moreover, verification errors could result in a breach of loan agreement terms and expose the bank to legal risk.