Leaders and key decision-makers in the insurance industry have quite a few challenges ahead of them in the coming years. One such challenge is adjusting to the industry’s slow, but deliberate shift towards industry-wide digital transformation. Another challenge is marketing insurance programs to a younger generation, which isn’t as keen on the all-inclusive but costly insurance packages that previous generations liked. The last challenge is overseeing insurance delivery in the era of health crises like the COVID-19 pandemic, when dynamism and efficiency are needed more than ever.
One of the most talked-about responses to such intimidating challenges is the need to modernize insurers’ policy administration systems (PASs). This often comes in the form of investing in new technology, like a life insurance solution for the delivery of digital insurance. But what will PAS modernization mean for customers, insurance staff, and insurers’ partners in the provider network? What should insurance industry leaders prepare for before they embark on the journey to modernize their core systems?
If you’re a key figure in your insurance firm and a staunch industry advocate, here are five important issues to think about regarding PAS modernization. Dealing with these issues ahead will pave the way for a smooth and productive transition to a new PAS, and increase the future-readiness of your insurance company.
The Longer You Wait to Modernize, The More Money Your Company Could Lose
Though modernizing seems like a great idea in theory, many insurers still drag their feet about it. Some firms will contest the idea of a radical upgrade to their core insurance system because it seems too costly or too much of a hassle. Some may want to pursue other priorities and thus defer modernization to next year, or the year after that, or the year after that one.
One stark reality all insurance industry leaders need to know about is that the reluctance to modernize also has a cost. If your company delays its modernization, it could lose many new business opportunities. At the same time, undetected business inefficiencies could be bleeding your coffers dry. Early adoption may seem costly now, but the alternative is scrambling to modernize when your company finances are already in dire straits.
Modernizing Your PAS Can Help You with the Granular Aspects of Insurance Delivery
It may also be good for key persons in insurance companies to know the granular aspects that a PAS modernization can help them with. In truth, a modernized life insurance system can be of great help in various stages of the policy lifecycle, including the following:
- Product development. It will be much easier to engineer new digital insurance products, and it will also take your company less time to bring them to market.
- Decoupling or downsizing insurance products. It’s also possible for you to use your new system to decouple or unbundle unwieldy all-in-one insurance packages that no longer appeal to your customers.
- Underwriting. A modernized core insurance system will also make the underwriting process faster, more accurate, and more aligned to your current risks.
- Sales and marketing. You can run digital campaigns that make use of email marketing, social media marketing, and the like with your new PAS as the command center.
- Invoicing and billing. Sending invoices and settling payments from customers will also be much easier on a more robust PAS.
- Claims management. Your new system can also help you manage challenging aspects like claims management, such as by streamlining the claims process and claims resolution. This will be a great show of goodwill on your part and will likely increase your customers’ faith and satisfaction in your system.
Modernization is Key in Reaching a New Generation of Policyholders
Key figures in insurance companies serve as brand ambassadors of timeless insurance values. But they can also be figureheads for a new era of digital insurance delivery. Moreover, they can market themselves as partners on a more modern, more responsive insurance journey. This is what will attract the younger members of the workforce who demand different things from their insurance programs than their elders did.
As part of your insurance firm’s leadership, remember that modernizing your PAS is the key to wooing this new generation of income earners. This new system will help you rethink the insurance experience to meet their milestones and their financial goals. If your PAS can help you win the trust of millennials and Gen Z, you’ll have an edge over your competitors in the industry.
Modernization May Simplify—Not Complicate—Your Core Insurance Processes
Another thing that insurance leaders must understand is that PAS modernization doesn’t necessarily mean complicating the firm’s existing insurance processes. The investment is actually meant to simplify the IT environment. A smooth, fully integrated PAS modernization effort will eliminate the need for additive, mish-mash tech upgrades that are both more costly and more confusing in the long run.
A modernized PAS should streamline workflows, automate rote tasks, and make your staff more at ease with handling large, complex volumes of insurance data. In summary, a successful PAS modernization effort should make the work easier, notharder, for all of you.
As a leader in your company, it’s your job to dispel the air of suspicion that may follow such a big tech upgrade. Ensure that the adoption of new technologies or new processes doesn’t unduly scare your staff. Support them in their own process of getting to know the new-and-improved PAS.
Modernization Will Work Best if You Can Trust Your Technology Partner
The last thing you should know as a figurehead for your insurance company is that you shouldn’t throw your support—and budget—at the first software solution you find. A successful PAS modernization effort also hinges on your technology partner and their ability to recommend the right product for your needs.
If you’re embarking on a modernization effort, you should find a tech partner who will ease the onboarding and maintenance processes for you. This guarantees minimal strain and minimal business interruption when you begin integrating the solution into your insurance workflow. Look for a software vendor who knows their stuff, and who can explain how exactly their solution improves your core insurance processes. That should be the start of a wonderful partnership that elevates the insurance experience for everyone.
Leadership is no easy task, especially if your whole career is built on mitigating, addressing, and making hard calls about risk. But modernizing the way you do insurance, via your PAS, is one additional risk that’s worth taking for the good of your company. Lead your firm into a profitable new era for insurance delivery, and consider upgrading your PAS as soon as possible.