Digital-first experiences are what we expect in our personal and professional lives, and consumers expect their insurers to keep pace. Today’s forward-looking insurance firms are exploring ways to incorporate automation into all their operational and administrative procedures.
Automation in the insurance industry means being able to react quickly to market changes and customer behavior. It also paves the way to lowering operational costs while enhancing policyholders’ experiences by providing them with immediate, convenient solutions.
In this article, we’ll shine a spotlight on how automation technology can expedite and streamline policy administration processes.
What are Automated Policy Administration Systems?
Insurance policy administration systems are software and tools designed to help insurance companies manage policies through their end-to-end lifecycle – from the initial quote to final termination – and simplify and automate the policy maintenance process.
Whether customers are applying for a new insurance policy or making a claim, automation delivers the fast and reliable service they expect.
Policy administration automation is used for front-end aspects, such as corresponding with policyholders, making web applications and forms available for them to use, and processing transactions. It’s also helpful in expediting back-end activities such as quotes, policy changes, updates, renewals, terminations, billing, and accounting.
Importantly, these software systems come with embedded security and access controls to ensure that customers’ confidential data and documentation are safeguarded – while allowing easy access and collaboration between authorized system users.
6 Reasons to Automate Policy Administration
Here are some major benefits you can expect from automating your policy administration processes:
In days gone by, when insurance brokers would submit their quotes, they’d often use their own forms and templates. Oftentimes, these documents would contain disparate or incomplete information. Today’s intelligent automation systems can process any information fed into it, regardless of the format, and upload it into a central repository. They can then calculate the risk to be quoted and even assign it to the relevant underwriter.
Real-time Damage Assessments and Repair Estimates
When policyholders are involved in auto accidents or experience severe damage to their homes as a result of a fire or extreme weather event, the first step for insurers is to undertake a loss or damage estimation. While it’s an essential part of the claims process, it’s also one of the most time-consuming and mundane activities involved in the insurance business. Automation, with the help of AI technology, allows for real-time damage assessments to be undertaken. These systems can assess damages to cars and homes, expedite claims, and even make settlements in real time, saving everyone time and effort.
Hassle-free Payment Processing
Payment processing is an integral part of the insurance lifecycle. Every payment requires invoices and receipts. Policy automation software relieves much of the manual effort in the invoice/receipt generation process and reduces the chances of human error.
Better Policyholder Servicing
Conversational AI, also known as chatbots, allows you to ensure that policyholders can get in touch with customer support agents no matter where they are or when they need assistance. These systems result in impressive savings while boosting customer satisfaction.
Advanced Fraud Detection
One of the downsides of technological advancements is that they make it easier for documents like insurance claims to be copied or faked. Automated policy administration software uses fraud detection algorithms to notify the insurer as to whether documents are valid or not.
Less Human Error
As we mentioned earlier, any process performed manually holds the potential for human error. These errors can cost money—lots of it. In some cases, these mistakes can lead to lawsuits or irreparable damage to the business’s reputation.
Automated policy administration tools are designed to help manage increasing demands from policyholders while making the risk of errors much lower when compared to humans.
The Insuresoft Policy Administration Solution
An automated policy administration system is essential in the insurance industry. Insuresoft is an established leader in this field. Our clients trust our platform to guide customers and more efficiently manage their policies. We’ve spent 25 years honing our Diamond Policy system to ensure it allows you to:
- Support and optimize the policy lifecycle from end to end
- Safely store comprehensive policy histories at the individual customer level
- Automate out-of-sequence endorsement processing in a single transaction
- Accommodate any user-specific configuration
- Process unlimited volumes of transactions
- Define rules, validations, and workflows using an intuitive rules engine
- Lower your total cost of ownership
- Increase your speed to market for new products and services
- Boost agent satisfaction and policyholder engagement
- Process personal and commercial line policies on a single platform
Contact us today to find out more about our platform.