Insuranceciooutlook

Five Trends in Policy Administration Systems

By Pamela Morgan, Insurance CIO Outlook | Tuesday, December 01, 2020

Most insurers use insurance policy administration systems to provide customers with information and value apart from policy benefits.

Fremont, CA: With the emergence of innovative technologies, insurance policy administration has significantly transformed. Insurers are leveraging the power of these technologies to achieve business objectives like improved collaborations by decreasing manual processes and developing a better experience for the workforce and policyholders.

Here are five trends in policy administration systems today.

Rule Capabilities

Today, all relevant systems have rule-based functionality, particularly insurance business and underwriting norms. Policy administration software use rules capacity that help carriers respond efficiently to factors responsible for the market shift.

Insurers use work history and other straight-forward rule reapplications to improve the entire system performance and enhance offerings according to their business needs.

Global Expansion

To gain profitability and growth, insurers are hoping to extend their businesses overseas. Insurance business expansion requires dynamic solutions for policy administration that fulfill country or region-specific needs. However, accessing a new geographical location also brings many challenges like compliance with regulatory norms, understanding customer behaviors, and choosing the right distribution channels, among many others.

Deploying Strategies

Most insurance companies use policy administration systems, including data conversion and legacy lines in later releases without any restrictions before the launch. The industry is also moving towards an extended pilot program on legacy products, going live with new business before advancing conversion on renewals.

Mobile Focused Strategy

Consumers use mobile devices for many purposes and convenience. Therefore, a mobile-focused strategy for any technology can help fulfill customers’ demands for services anytime, anywhere. Also, insurers need to provide users according to their choice of devices.

Smooth Customer Experience

Policy administration software offers advanced portals that support traditionally-used and new distribution channels and limits issues in understanding various systems. Most insurers use insurance policy administration systems to provide customers with information and value aside from policy benefits.

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