Even before the pandemic hit, the insurance industry faced profitability challenges. Now, as inflation edges upwards, all types of insurance lines are being impacted by rising claims costs:
According to McKinsey:
- Rising prices contributed to an approximately $30 billion increase in loss costs over and above historical loss trends.
- Prices for motor vehicle parts and equipment rose 22.8 percent between June 2021 and June 2022.
- Used car and truck prices rose 14 percent.
- Supply chain disruptions and other inflationary factors in the automotive industry resulted in an estimated $9 billion in loss costs for auto physical damage in 2021.
- Rising prices for basic commodities increased loss costs in multiperil insurance lines – both personal and commercial – by an incremental $8 billion and $2 billion, respectively.
Against this backdrop, more insurers are considering how automated, cloud-based insurance software can unlock operational efficiencies and enhance customer and employee experiences.
Increasing numbers of software providers are rising to the occasion, developing ever more sophisticated, customizable, and industry-focused solutions. Once insurance firms understand what these platforms can do and how best to use them, the benefits can be impressive.
Let’s consider how insurance software can solve different challenges within specific areas:
6 Reasons You Need Insurance Software
It Fuels Your Sales Engine
Automation allows your customers to request quotes and buy policies with minimal interaction with your sales team. However, if certain customers prefer the traditional face-to-face or telephone approach, these systems can also help speed and smooth the process by generating the paperwork, from quote through to renewal.
Insurance software that includes opportunity management capabilities takes this a step further. It automatically feeds salespeople upsell and cross-sell signals based on customer actions and behaviors on your website and social platforms. As a result, they can sell more products and generate more income for your firm.
Your Internal Teams Become More Efficient
Insurance software gives you a single dashboard to view, track, and manage policies from multiple sources. It can be integrated into a collaborative platform that manages data from all teams and processes. The software also acts as a scalable and resilient solution for managing ad hoc customer queries and requests.
When everything is housed on a single platform, you can save countless hours gathering, reviewing, and rectifying data. All this cuts down manual intervention, reduces the chances of human error, and increases the speed of working.
You Can Go Paperless
Insurance software puts you on track to say goodbye to printing, scanning, and storing paper documents. All administration can be done within the system using technology that can be accessed from multiple locations.
It stores customer data (policies, claims, tasks, notes, etc.) and generates and scans documents (attached, scanned, generated, and historic). There’s no need for a separate document storage system, filing cabinets, copying, and shredding. Your teams can email documents automatically or manually after they’ve created them.
It Gives You Flexibility and Scalability
Insurance software systems can be integrated with your website and other third-party apps.
As they’re cloud-based, they’re adaptable to suit virtually any size of insurance business, and you can scale up resources on the fly when the need arises.
It’s Secure and Compliant
The best software providers offer hosting at secure data centers. However, if you prefer to host your own on-premises systems due to data privacy requirements – not a problem.
Insurance software systems retain a full document history – everything sent out or received can be stored on the system. Audit logs and case histories are securely stored in a central database, and only selected personnel can access it.
It Supports Iterative Digital Transformation
Another reason that more insurers are investing in insurance software is that it allows them to advance on their digital transformation journey at their own pace.
You can automate sections of your business one at a time without sacrificing customer or agent experience.
The Insuresoft Advantage
Insuresoft is on a mission to help insurers navigate the increasingly complex challenges of today’s business environment, including rising cost pressures and customers’ expectations for fast, hyper-personalized experiences.
Our all-in-one enterprise software solution is ideal for both personal and commercial lines. It combines core policy processing, digital engagement, and intelligent data to help you navigate the many challenges associated with insurance quoting, compliance, and management of FNOL services.