We continue our series with this fourth installment of 7 Signs Your Policy Admin System is Reaching its Limits. (Follow the links below to view our first three articles.)
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 #4: Do you feel held back and unable to grow the business?
How long does it take to make product and rate changes? Weeks? Months?
How long would it take to launch a new product or enter a new territory? Would this be a multi-month project? Could it take years? Are you blocked from new opportunities because your PAS can’t support new products or process business in new territories at all?
Are rating and underwriting limitations hurting your ability to price risk accurately? Are you blocked from integrating with third parties for more sophisticated capabilities, such as predictive analytics or property intelligence?
A healthy PAS will equip insurance leaders to quickly respond to market opportunities:
- Update products/rates quickly
- Launch new products in months, not years
- Expand and enter new territories
- Raise the bar of your rating and underwriting
- Incorporate sophisticated capabilities from third parties
An out-of-date policy admin system will prevent you from responding to market changes or pursuing new opportunities, and leave you vulnerable to competitors with more flexible product capabilities.
If the limitations of your current policy admin system are blocking your growth and ability to employ new capabilities, 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policy admin system is reaching its limits, and what to do about it, click below to download the complete eBook 7 Signs Outdated Policy Administration is Damaging Your Business: