The global economy has been on a roller coaster ride for the past few years. Persistently high expectations from digital-savvy customers, pricing pressures from fee transparency, intensification of digital competition, and slow organic demand in mature markets are some of the key challenges faced by insurers. As a result, innovation is no longer an option for sustainable insurance business models – it’s a dire necessity. Against this backdrop, modern business solutions like insurance policy management software can enable insurers to deal with competitive pressures, meet the evolving expectations of customers and handle large volumes of data in an efficient manner.
A policy management system can reduce the time to create a policy, manage, and communicate policies and procedures more efficiently which ultimately drives better customer experiences. But how exactly can insurance policy management software drive growth for your business? Let’s find out.
Challenges in Manual or Legacy Policy Management Systems
Traditional policy management typically relies on manual processes which contribute to variations, errors, delays, data silos, and heavier administrative burdens. With this context, it comes as no surprise that over 65% of life insurance carriers find manual data collection clogs business processes and erodes profits. Not to mention that the increasing and inflationary burden of resource requirements – be it in the form of staff, real estate, consumables, etc. – only makes traditional policy management highly inefficient and unsustainable.
As a result, traditional policy management presents severely limiting challenges that hinder growth and minimize profit margins, which leaves insurers struggling to stay in the green.
Key Features of Insurance Policy Management Software
From the above, it is evident that insurers are left to their devices to digitize and select a policy management software solution that caters to their requirements. However, with the wealth of options available in the market, choosing just one can be a tough task. Fortunately, insurers can zero in on the insurance policy management systems worth their salt by seeking out the following features:
1. Data Management
In the fast-paced and highly customer-focused insurance landscape, efficient data management, and its governance and security serve as a foundation for sustainable business growth. To understand its implications consider this: data management cost more than $41.1 billion in the last year alone – making it the highest IT expense!
Insurance policy management software should offer a centralized repository for policy information to ensure easy access, accuracy, and data security. With all the relevant data available at their fingertips, employees no longer have to sift through documents, multiple systems, and spreadsheets for critical information. Not only does it streamline operations, but also paves the way for quicker decision-making. With such an organized approach, insurers can make the most out of their data resources.
2. Workflow Automation
Policy management software powered by automation technologies can be a game-changer for insurers seeking to drive accelerated growth. By automating repetitive and time-consuming tasks such as policy issuance, renewals, endorsements, and claims processing, insurers can significantly enhance operational efficiency. This efficiency translates into faster turnaround times, improved customer service, and the ability to handle a larger volume of policies and claims. Moreover, automation ensures accuracy and regulatory compliance, thereby reducing compliance and regulatory risks. With these advantages, insurers can redirect their human resources toward strategic initiatives, product innovation, and expanding their market presence.
3. AI-Driven CX
Artificial Intelligence (AI) is a notable disruptor enhancing the capabilities of all software solutions, and insurance policy management software is no exception.
With AI-powered tools, policy management gains a competitive edge as insurers manage to transform the customer experience (CX), deliver accuracy and reliability, and offer convenience – all packed in one. It is the underlying technology behind innovations like data analytics, predictive modeling, data-driven risk assessment, chatbots, and more. Each of these can simplify the insurance value chain and streamline processes.
It also unlocks opportunities for self-servicing by allowing customers to access policy-related information or to raise claims. Seeing as how more than 7 out of 10 consumers prefer this facility, policy lifecycle management software can propel CX to new heights.
The uniqueness of every insurance business calls for an equally unique policy management software. However, the associated costs of such software development and the highly typical talent requirement can discourage even the most established insurance companies from getting a bespoke solution. In such cases, the customization capabilities are the next best thing.
Even if insurers invest in whitelabel solutions, the insurance policy management software should be configurable to a degree that it matches the specific business requirements. From tailoring workflows to editing forms to generating detailed reports of focus areas – a competent policy management software solution will transfer control into the hands of the insurer.
Accelerate Growth With a Unified Policy & Claims Management Software
There is no contesting the fact that we are living in the InsurTech era. This means that almost every insurance workflow or process has a digital equivalent. Whether businesses have achieved this already or plan on doing it in the near future, they need to plan their digital assets in a manner that everything fits cleanly and works frictionlessly in the digital infrastructure.
For this reason, there is a strong need for policy management software with powerful integration features to make your insurance business future-ready. After all, such a platform would not operate in a vacuum. If anything, it will work closely with other systems and frameworks like underwriting, claims, billing, and CRM solutions.
In order to stay ahead of the competition and unlock growth, insurers must prioritize innovation. Modern insurance policy management software can efficiently address the challenges of manual processes and offer essential features such as data management, workflow automation, AI-driven CX, customization, and integration. By embracing the right policy management software, insurers can stay competitive, maximize profitability, and deliver exceptional service in the evolving insurance landscape. Don’t let outdated processes hold your business back – invest in the future with advanced policy management software.
Case in Focus
A leading life insurance company sought to modernize and maintain core business policy administration and claims processing applications to meet changing business and customer needs. We collaborated closely with the client and implemented flexible and scalable solutions powered by InsuranceNXT. Our solutions helped the insurers adapt to the changing market dynamics while delivering exceptional customer experiences. For more details, refer to the complete case study.