According to the World Insurance Report 2012, insurers are concentrating on improving underwriting performance by optimizing claims, customer acquisition and other operational costs. Surveying insurance executives across the United States, Europe and Asia-Pacific the study found that for 93% carriers in Europe and 67% carriers in US that increasing the efficiency of policy administration technology is one of the major priorities for improving margins.
The importance of adapting a good policy administration system to stay ahead in the current competitive market speaks for itself. Let’s touch on the basics:
Scalability – With new business growth as a priority, your policy admin system should be flexible to grow as your company grows without major programing changes. With the likelihood of new features getting added and with more and more customers accessing, your system should be scalable.
Adaptability – Legacy policy administration systems that lack the flexibility to adjust, add or remove products are no more useful in the today’s market where the needs of business insurance are often changing. Supporting your business and other technical requirements which may arise in the future should be on your requirements list.
Flexible architecture – Just like the software of the system, the hardware of the system should also have a flexible architecture to adapt change.
Configuration sharing – A typical insurer deals with many insurance products that often have overlapping features. To make the best of your new policy administration system, make sure that it provides effective configuration sharing so that you can configure different products with common characteristics with less effort.
Easy to use – Your new system becomes less effective if it takes more of your time and resources. So, make sure that its operation is not only effective but also easy. Every department involved in its operation should feel comfortable using it – then only it becomes viable. This also avoids you to hire new resources, which is an additional expense.
What essential characteristics are insurers focusing on when modernizing their policy administration system?