Policy admin systems operate at the core of the insurance business and are absolutely essential. Insurers depend on their policy admin systems to support their daily operations, which include managing complex processes, performing intricate calculations, and ensuring compliance with detailed and strict regulations. Once a policy admin system is in place, insurers loathe the thought of replacing it.
In life, and in insurance, the only constant is change. Insurers have adapted their old systems to accommodate significant changes – such as new market trends, regulatory changes, and shifting customer expectations – but adaptation has its limits. Over time, layer upon layer of changes makes a policy admin system brittle and unstable.
Every tool has a finite useful life. A policy admin system is no different. Insurers who wait too long to replace their legacy system risk damaging their business. They will reach a tipping point with an out-of-date system where they fail to meet policyholder expectations, discourage their agents, and lose ground to more nimble competitors.
How can insurance leaders know when it is time to begin thinking about replacement?
We’ve identified seven warning signs that a policy admin system is reaching its limits. This is the first in a series of 7 blogs exploring each warning sign.
Warning Sign #1: Are you losing ground with your agents?
Do your agents and employees have to key and rekey information? Do you have a manual quote process with many back and forths? Does it take many hours – even days – to quote and issue a policy?
Do your agents complain about a lack of information and access – that it’s too difficult to do business with you? Do they have to contact you regularly for assistance with trivial questions? Are they dependent on your team to provide information and make updates to accounts?
Does your team struggle to prepare monthly reports and provide analysis of agent performance? Is calculating agent compensation a manual and time-consuming process?
A healthy policy admin system will provide an agent experience that has agents looking forward to doing business with you by:
- Enabling agents to rate, quote, and bind in one session
- Eliminating extra steps and data entry and rekeying
- Supporting fully-digital interactions for speed, compliance, and reduced costs
- Enabling ready access and the ability to change policyholder and account info
- Automating complex processes, such as managing agent compensation
- Providing a clear picture of agent performance and key metrics
An out-of-date policy admin system will frustrate your agents and can drive them away from you – not a prescription for growth and success!
If the limitations of your current policy admin system are keeping your agent experience from being what it should be, this is a warning sign that action is needed.
For more information on this and other warning signs that your policy admin system is reaching its limits, and what to do about it, click below to download the complete eBook 7 Signs Outdated Policy Administration is Damaging Your Business: