An insurance policy management system can play a pivotal role in shaping the growth trajectory of an insurance business. This digital solution offers end-to-end policy management and administration, automates repetitive tasks, and performs a variety of policy-related activities across all lines of business. In other words, it is a powerful catalyst for driving organizational success.
However, taking this leap of faith can be overwhelming to insurance businesses with growth appetite but are stuck due to legacy systems usage. Not to mention that the upfront capital investment may feel massive and overwhelming a commitment that can scare off even the most determined companies. Such fears and inhibitions are understandable. That being said, they shouldn’t come in the way of long-term success.
In case you are still on the fence as to whether an insurance policy management system is right for you, then here are seven compelling facts that can help make up your mind.
How Insurance Policy Management Software Can Help Your Business Grow?
Here are some key ways through which policy management software supports business growth:
1. It Grants Richer Digital-first Customer Experiences
Customer experience has become the latest competitive differentiator. It bears even more relevance in an industry like insurance, which once treated its customers like an afterthought. Modern-day insurance businesses can embrace customer-centricity by adding an insurance policy management system to their tech stack. Doing so will make policy details readily accessible digitally, lend transparency to business operations, improve customer service, and empower customers. Such results will sow the seeds of a rich and meaningful customer experience that will cultivate long-term loyalty. It will also inspire word-of-mouth marketing through referrals and positive reviews, which will cause your business to flourish.
2. You Can Personalize Policyholder Journeys
Insurance policy management software captures a wealth of customer data, which can be leveraged to personalize policyholder journeys. Such invaluable data resources may be stored on built-in CRM platforms that make this information available to all authorized stakeholders. Creating such a centralized repository sheds light on customer data related to transactions, behavioral patterns, purchase history, demographics, etc. Access to such information allows insurers to personalize the product and the marketing and sales activities surrounding it.
Seeing as how personalization accelerates business growth by 40%, it is yet another way in which the insurance policy management system helps your business grow.
3. It Helps With Effective Policy Management & Administration
Regardless of the scale of your organization, managing policies and policy details can be cumbersome and resource-intensive if left to be done manually. With an insurance policy management tool in the picture, it is possible to track policies efficiently. As such, insurers can stay ahead of routine administrative tasks from issuing policies to renewing or canceling them with minimum human intervention. This will not only save the employee’s time and efforts but also shields business processes from incidents of error or fraud. Such efficient management and administration of policy will undoubtedly cause your business to flourish.
Enquire How Insurance Policy Management System Can Drive Business Growth
4. It Unlocks Greater Revenue Opportunities
Insurance policy management solutions will allow businesses to tap into revenue opportunities in more than one way. Some of the policy management systems allow one-screen operations to manage multiple products across multiple lines of business. It saves time for insurers who can allocate more time to up-sell and cross-sell different products to customers. It will also elevate the customer experience, which plays a clinching role in encouraging customers to spend more. After all, 86% of consumers are willing to pay extra for a rewarding customer experience. Similarly, a positive customer experience is a magnet that attracts several qualified leads and increases sales in the process. We’ve already seen its revenue impact through the personalization of products or policyholder journeys. Plus, it will reduce cost overheads that could arise from manual work, loss of productivity, or business scalability. Such impressive results are a preview of the ROI that it can offer as a contribution to your business’s bottom line.
5. Enjoy Support With Accurate Underwriting and Risk Assessment
Most insurance policy management solutions come equipped with data analytics and risk assessment features. These modules process high volumes of historical data, powerful analytics, and real-time trends for sharper and more accurate business decisions, especially when it comes to policy underwriting. Such a cross-functional, data-backed analysis allows insurers to protect themselves from potential losses, which will naturally increase business profitability. Additionally, the narrower exposure to risk also adds to the financial stability of the insurance business and makes it sustainable.
6. It Unleashes the Power of Automation
An insurance policy management system is the fastest way to digitize a chunk of your insurance operations. From insurance policies to related processes, everything takes on a digitally equivalent avatar thanks to the magical touch of insurance policy management systems. While the digital transformation of insurance has advantages of its own, one of the standout features is how it lays the groundwork for long-term business scalability and room for automation. Integrating automation into the policy management processes can help insurers in boosting efficiency and productivity.Insurance companies can build on and expand their capabilities by adding integrations and automating workflows that breathe a whole new life into how they work. Thus, you get the foundation for a sustainable and future-proof insurance business.
7. It Increases Adherence To Regulatory Compliance
Regulatory compliance is a major consideration for insurers big or small. After all, compliance can put a spoke in even the most established insurer’s wheels! Insurance policy management systems are configurable to ensure legal and regulatory compliance right from the ground up. Such a measure for ensuring checks and balances minimizes the risk of non-compliance, which could take the form of penalties, fines, legal issues, and loss of public trust. These systems also maintain an immutable business record in the form of real-time and historical reports and analytics, which grants even more visibility into the insurance value chain.
In summary, insurance policy management systems are a must-have for growth-oriented insurance businesses. It promises a ton of benefits, from streamlined policy handling and administration to better customer service to improved compliance, and more. Apart from delighting policyholders, it also improves the morale and productivity of your employees and internal stakeholders. Most importantly, it could be the driver of a digital change that replaces legacy systems with intelligent solutions. These seemingly small but incremental advantages cascade into a sustainable business model that continues to develop iteratively until your business thrives!
Case in Focus
A multinational and multi-line insurance business was in dire need of modernizing its home-grown legacy system. With the passage of time and evolution in technology, the insurer was struggling with incompatibilities and a shortage of legacy coders for maintaining the core business system. We partnered with the insurer and helped them modernize their existing system. As a result, the insurer was able to improve scalability, reduce costs, and make strategic decisions. Read the detailed case study to learn how the insurer accelerated its insurance legacy modernization.