In years gone by, all policy administration platforms in the insurance industry were costly and inflexible systems used for different elements of policy management. However, the development of new SaaS-based technology solutions means the non-customizable and all-or-nothing systems of the past are no longer are the only option for insurance carriers. We investigated the common misrepresentation of today’s policy administration solutions, as over-complicated systems that do not prioritize customer experience and are unable to implement new products quickly.
What is a policy administration system?
A policy administration system is a software solution that handles interactions on both the front and back end of the policy administration process, from quoting, rating and designing insurance products to payments, underwriting and renewals. Policy administration systems are at the core of any insurer’s day-to-day operations, enabling insurance agencies to manage policies throughout their entire lifecycle.
Misconception One: “Customer Experience is not Prioritized”
Typically, the insurance industry is known to be slower than other sectors to embrace change and digital transformation. Because of this, there is a general perception that all policy administration systems are fixed software solutions that are unable to be customized for different insurers. In an age when connected and personalized digital experiences are commonplace, insurers need to meet these changing expectations by developing flexible product lines and channels that provide the highest level of customer experience. In order to successfully offer innovative and distinctive products to today’s customers, there needs to be a shift from legacy systems to fully customizable SaaS-based platforms, like INSTANDA, that are can address the demands of the evolving insurance market.
Misconception Two: “Changes to Systems are a Lengthy Process”
For insurers that are still required to conform to the outdated capabilities of legacy administration systems, speed to market is a major sticking point. With the ongoing transformation of the insurance industry, the elapsed time from product design to implementation needs to be short in order to keep up with new areas of coverage. There is a common misconception that changes to any policy administration system are an extensive and cumbersome process that can take years, but this is simply not the case. SaaS-based digital platforms that can deliver solutions in a matter of weeks or months allow insurers to be the first to launch in markets and capitalize on new opportunities. There is only ever one version of the INSTANDA platform, and any updates to functionality or capabilities are automatically updated every couple of weeks, meaning that insurers no longer have to waste time preparing for software updates to legacy systems or relearning how to use upgraded technology.
Misconception Three: “Technical Coding Experience is Necessary”
Insurance may be complex, but that doesn’t mean that it has to be difficult to launch new products in emerging markets or build new portals. Due to the systems-heavy processes of the past, it is still commonly believed that only IT departments and coding experts have the technical ability to effectively operate insurance platforms. With the introduction of low-code and no-code software, insurers can digitalize their insurance product offering without writing a single line of code. No longer do insurance companies have to rely on developers and engineers to launch new products, instead business users can utilise templates and guides to develop products that address diverse market needs at scale. Technical skills are not required to use INSTANDA’s platform, meaning that anyone can build intuitive and unified experiences that deliver customized insurance products to customers.
Innovative platforms like INSTANDA mean that insurance companies no longer have to endure the inflexible, slow, and complex policy administration systems of days past. Put the common misconceptions about policy administration systems to rest, and request your free demo of the agile INSTANDA platform today.