Considerations while Selecting an Insurance Policy Administration System

Insurance CIO Outlook | Tuesday, July 26, 2022

A policy administration system can assist insurance companies in achieving critical business objectives and enhancing agent and policyholder satisfaction.

FREMONT, CA: In recent years, insurance policy management systems have changed substantially to embrace more dynamic and adaptable solutions. Modern technologies have transformed the user experience and lowered the effort required to onboard and manage new and innovative insurance product offerings on carrier platforms. These developments have altered how insurance is purchased and marketed.

Complex administrative procedures and hefty workloads make it difficult for insurance companies to meet the world's needs in constant flux. There is intense competition, and policyholders have high expectations for self-service and speedy information access. Agents and insureds may experience inefficiency and annoyance due to manual operations and disconnected workflows.

Insurance agencies may differentiate their firm from the competition, increase employee and customer happiness, and generate considerable operational savings with a modern insurance policy management system. The appropriate technology can increase productivity, boost staff skill sets, and deliver greater value to insureds, resulting in a substantial return on investment.

Choosing a policy administration system is crucial and requires careful consideration of numerous elements. When choosing policy administration software, consider the following features:

Manage the entire policy lifetime: The optimal insurance policy administration system should serve as a one-stop shop for the book of business. The users should never be required to exit the system to complete rating and allocation tasks, certifications, quotes, bills, reporting, renewals, diaries, or endorsements. Access to this information through a centralized system can significantly increase efficiency and give a better experience for the agents and insureds.

Automate workflows to streamline operations: A single insurance policy can produce considerable paperwork and labor-intensive duties. Even the most seasoned agents can benefit from automating workflows due to the growing number of policies they must handle. Automation is particularly advantageous for generating policy renewals, issuing new guidelines, offering quotes, modifying current policies, and minimizing data entry. Agents can devote more time to providing individualized services to insureds by automating everyday insurance administration tasks.

Provide insureds with opportunities for self-service: Insureds need and expect immediate access to their policy information, yet frequently must seek it from their representatives. These requests entail more work for already overworked agents and can be inconvenient for policyholders who require prompt responses. Insurance agencies may increase insured and agent satisfaction by selecting insurance policy administration software with self-service capabilities. Self-service provides insureds access to proposal and policy history, reports and certificates, and other allowed data. Because insureds today value instant access to their information, self-service options can help insurance agencies improve customer satisfaction and retain more customers.

Enhance pricing and cost precision with analytics: With greater analysis of premium, risk, and deductible factors, insurance agencies can generate significant operational savings by deploying the appropriate insurance policy administration system. Insurance agencies can make informed judgments based on real-time data using embedded analytics. Consider options with Key Performance Indicators (KPIs), conventional reports, and user-friendly ad hoc reporting.

Integrate easily with other systems: Depending on the type of organization, insurance agencies may require that their policy administration system link with their claims administration software, invoicing system, and risk management information system, among other systems. Insurance agencies probably have more internal systems crucial to their daily operations. By selecting an insurance policy solution that interacts readily with other systems, insurance agencies can ensure streamlined processes and obtain a more comprehensive picture of their data.

Simple to use and modify: The administration of insurance policies is quite complex, and each business has its procedures. The optimal policy administration system should be created with agents in mind, featuring a simple interface easily adaptable to individual user requirements. Select a user-friendly system that allows insurance agencies to develop workflows according to their individual needs.

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