President of Insuresoft
Why do insurers need to implement to a digital policy admin solution? What are the main business imperatives?
Selling and servicing policies for next generation insureds requires a digital admin solution. Millennials expect to be able to manage their policies online, when appropriate. When they do need assistance from either an agent or an insurer, they expect the person providing them with assistance to have immediate access to all of the information about their policies, coverages, invoices, etc. And, they are looking for a personal touch. A digital solution that combines policy and underwriting information, not just by policy, but by client, provides the insurer with opportunities to deliver on their customers’ expectations.
How should insurers with highly customized legacy systems go about a digital upgrade? What benefits can they expect?
Start with your business teams first. This is not an IT project; it’s going to change the culture and the way the insurer operates. It’s imperative that the project have complete buy-in from the business unit. The process leading up to the search and selection of a new system is more important than the selection itself. In order to upgrade successfully and make the most out of the new system, insurers must be willing to change their workflows and business processes to meet the digital age. Insurers also need to identify what customizations in their legacy system really set them apart to their agents and policyholders. Those are the features and functions it might make sense to customize even with a new, more robust solution. Focus on making decisions for the right reasons and keep an open mind.
How do the latest business intelligence functions give insurers such a big competitive advantage? Why are these capabilities dependent on a modern, integrated suite of digital core systems?
The data available today is astounding. When used right, details like accident frequency within a mile of a risk address, smart home technology that controls how often an alarm system is actually used, not just installed, and so on allow insurers to set their pricing and underwriting rules accordingly. And, that information needs to be available in real-time so that the data can be applied to decisions at the transaction level. Gone are the days of underwriting a policy one-time when it comes in the door as new business.