Many legacy policy administration systems impede insurers’ abilities to both boost operational efficiencies and create innovative policies. The complicated legacy architecture means that insurance companies need to increase budgets just to keep these systems functioning. Insurance providers that continue to rely on hardwired and rigid software solutions will face an uphill battle to respond to changes in regulation or market trends.
Policy Administration Software
A policy administration tool is a software solution that manages a wide range of mission-critical operations such as rating, underwriting, quoting, and policy renewal.
However, policy administration systems are rigid and very difficult to customize. As a result, it takes time and vast resources to manage and change critical processes in an organization.
Policy Administration Systems Using Rules
The insurance industry is trying overcome legacy technology bottlenecks.
Robust product development features rely on flexible business rule engines that enhance policy administration systems.
An optimized policy administration tool not only enables insurance companies to create personalized products but also provides automation features that cut down the time to market.
Optimizing Policy Administration Tools
Insurance carriers will use a business rules engine that connects to legacy administration software tools to enhance vital tasks such as underwriting, policy innovation and development, and claims management.
The most powerful policy administration software offers the following capabilities to insurance companies:
- Policy Management: Insurers are able to manage a detailed product catalog while streamlining the development of different products.
- Billing and Accounting: This involves processing claims, reimbursements, commissions, and licenses.
- Underwriting Automation and Calculating Premiums and Rates: This includes handling eligibility criteria and customer ratings.
For that reason, business users who lack technical expertise are able to generate tailor-made models that give them a competitive edge in the market without having to wait weeks or even months for the IT department to deploy the changes.
Benefits that Come with Improvements to Insurance Policy Administration Systems
Insurance carriers can experience fast growth by updating their policy administration software solutions with rules engines:
- Better Customer Experience: Offering relevant and customized insurance policies offer an improved customer experience.
- Innovative Products and Services: An optimized policy administration tool empowers non-technical subject matter experts to create new and exciting policies that can quickly meet the ever-changing market conditions.
- Automation: Robust business rules enable providers to enhance and automate underwriting procedures in real-time such as quoting and policy issuance.
Rules-enabled policy administration tools empower providers to perform instant policy development, reduce time to market, reduce overall operational costs, and build personalized calculation models that meet business targets.
Summary
The countless systems and processes make replacing policy administration systems an enormous and expensive job.
As a result, many insurance companies are using business rules engines to optimize their policy administration tools. Carriers are able to improve many important processes such as underwriting, policy issuance, and claims renewal and management.
Rules engines make it easy for users lacking technical skills to manage and modify applications and processes because they don’t have to use manual programming or wait for support from the IT team.