Some reports are in a form that restricts the size of the printed field. I know that this is really true on a pedgree chart.
In most cases when you send a report to a file, depending on options selected, names and maybe places are marked for indexing. So the indexing of the names are done with Word. Turn on the see codes to see the marking.
Question, are you printing only the FGR for the book? The Register style report is really, IMHO, the best part of the UFT reports selection. I like to use the custon selections with the birth and death dates of the children checked. Then the use of Principal roles to report the events along with the Ind text and event text. If sent to Word you can generate the index after doing any editing.