There are a lot of factors that need to be present so that an insurance provider can stand out from the competition in the digital age, and central to this goal is the presence of a simplified policy administration (PAS) system. The PAS serves as the backbone of an insurer’s operation. Given that their main purpose is to manage the end-to-end lifecycle of individual and group insurance products, the legacy policy administration systems used by most insurers have grown immensely complex over the years. This complexity has become a barrier for insurers who want to make their companies more competitive in the face of an evolving digital landscape.
Simplifying policy administration will improve an insurer’s speed, consistency, and reliability. This, in turn, will enable insurers to provide their customers with better products, services, and experiences. In particular, here’s what a streamlined and straightforward PAS can offer insurance providers and the individuals and groups that they serve:
Leading insurance companies are always on the lookout for opportunities to reduce the cost of their operation without sacrificing their efficiency. A legacy PAS can get in the way of achieving such a goal by implementing complex processes, using disjointed workflows, and requiring time-consuming documentation. A PAS designed for the digital age does away with these complications and enables insurance providers and customers alike to quickly accomplish what they set out to do.
For example, an insurer may want to come up with a health insurance solution targeted at millennials. An insurance firm with a streamlined PAS can simply look up the products that sell particularly well to their target market, implement updates that will improve the said product, and roll it out. Doing the same in a legacy PAS will take more hours and labor, which can cost more for the company.
Many insurers that still rely on legacy PAS are also still using data silos, which are notorious for their capability to hamper collaboration between different departments within the same company. Such a system for managing information is built for secrecy rather than accessibility and imposes plenty of complications on insurers that aim to design and immediately launch innovative products and packages.
In contrast, modern policy administration systems are designed for collaboration. These offer a single platform for managing life, annuity, and group products. At the same time, they can be used by actuaries, business analysts, compliance officials, and other specialists to come up with products and services that will benefit both the company and its customers. An environment that is conducive to collaboration can improve speed to market and enable an insurer to establish its presence ahead of its competitors.
A simplified policy administration system not only directly benefits insurers but can also help consumers make the right choice when shopping for insurance products. Today’s consumers are looking for the exact insurance products that suit their needs, and they often have a hard time looking for packages that check all the boxes. Having the option to mix and match their policies can make the task much easier and quicker for them.
Insurers that still rely on legacy PAS have to go through lengthy processes to revamp their products and services, but this is not the case for companies that have upgraded to a streamlined PAS. These new systems allow companies to easily update their existing products and launch new ones, making it much easier for insurers to come up with products that will meet the needs of different sectors. Their customers, in turn, have the option to subscribe to policies and create custom insurance packages that can best help them meet their personal goals.
Insurance companies must be ready to respond to their customers as soon as possible. To do this, they need to have real-time access to the customers’ policy information. This is another capability that a streamlined PAS offers. A PAS that’s designed for modern insurance providers and users can immediately supply agents and underwriters with the information they need to adequately respond to the inquiries of their customers, and it can display the changes in a customer’s policy in real-time. This feature helps ensure that customers get the services they need as soon as possible.
By consistently offering accurate information and showcasing a high level of responsiveness, insurance companies can provide better customer experiences and improve their chances of working with their customers for a long time.
A modern policy administration system that’s designed for the digital age is key to ensuring that business can proceed smoothly for customers and insurance providers alike. It’s an essential tool for any insurance company that aims to make its mark and retain its clientele in modern times.