This is the second article in our series 7 Signs Your Policy Admin System is Reaching its Limits. (For our first article, click here: 7 Signs Your Policy Admin System is Reaching its Limits – Sign #1.)
Policy admin systems are essential. Once a system is in place, insurers loathe the thought of replacing it. Many systems have been in use for decades.
Insurers have adapted their old systems over the years to respond to change – but adaptation has its limits. Layer upon layer of changes makes a policy admin system brittle and unstable.
Every tool has a finite useful life. Insurers who wait too long to replace their legacy policy admin system risk damaging their business.
We’ve identified seven warning signs that a policy admin system is reaching its limits.
Warning Sign #2: Are you caught in an endless cycle?
Does your team feel overwhelmed? Are you caught in a daily paper chase – buried under manual workarounds and the endless routine of shuffling, filing, and retrieving paperwork?
Is the data you need for critical processes – such as underwriting or claims – scattered across different systems? Are you continually on the hunt for information? Are you having to fall back on manual work and calculations to keep everything balanced, prepare reports, and get the job done?
Is keeping your PAS up and running a constant battle? Are you regularly forced into expensive projects to upgrade your hardware and system? Is the time and effort to “keep the lights on” blocking you from providing new products and services to your agents and policyholders?
A healthy PAS will keep insurers in control of and driving their business by:
- Eliminating the need for manual processes and workarounds that must be policed
- Reducing the need for paper to near zero -- and eliminating associated costs, hardware, and storage space.
- Absorbing shocks and surges (such as a rash of CAT claims) without the need to hire for more capacity
- Eliminating the ongoing cost and disruption upgrades -- that simply keep the lights on.
An out-of-date policy admin system will generate reams of paper, spawn workarounds and inefficient manual processes, slowing you down and leaving you with a perpetual sense that you’re falling behind.
If the limitations of your current policy admin system are consuming all your time and energy with workarounds and manual work just to keep the system going, 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: