An insurance policy management software orchestrates a variety of functions within an insurance organization. From issuing policies to handling claims to renewal of policies – it forms the backbone of all processes. There are several insurance policy management software solutions available in the market. However, at a cursory glance, all of these solutions look more or less the same. So, how can businesses decide which one would be the best fit for them?
Here are some tips to help insurers pick the right insurance policy administration software for their business:
#1: Involve the Stakeholders
Before getting into software selection, businesses must first consult all the stakeholders and get them on the same page. Each employee of the business who has a vested interest in the insurance policy administration should be taken into consideration.
While most businesses consult C-suite executives when choosing software, they fail to confer with the end-users. Therefore, to make the right decision for the business, the employees who will be using the system should be involved right from the get-go. They should be satisfied with the selected software and its functionalities. Team managers should also be taken into consideration as they need to know if the new system will give them the desired results. Finally, one must not fail to include the security and tech teams to ensure the software meets the business’ security standards and can fit with the IT infrastructure.
#2: Prioritize Business Needs
Not all insurance policy management software is built alike. While implementing an automated cloud-based system is beneficial, having a single solution that supports all IT infrastructure no matter how old it may be is unrealistic. It is highly unlikely that you’ll find an insurance policy lifecycle management software that will be able to meet all the needs and requirements of the business. Hence, businesses must prioritize their needs and determine which functionalities they absolutely must have and which would be nice to have. Having a list of essential features will also help you shortlist the policy management systems that fit your needs.
#3: Set a Budget
There are different insurance policy management software solutions available to accommodate different budgets. Off-the-shelf solutions catered towards a more general user base and with limited features are often easy on the pocket.
Whereas, the more specialized the software is, the more costly it will be. For instance, specialized insurance policy management software systems are often priced on the higher side because their user base is relatively small. Therefore, if businesses want a specialized solution, they must be ready to pay a premium. As such, insurers can also opt for cloud-based software. Software hosted on the cloud is cheaper than on-premise infrastructure. Rather than paying for hardware, maintenance, etc., businesses just have to pay the subscription cost.
#4: Consider Core Functionalities
One of the key steps in choosing the right insurance policy management software is ensuring that it comes with all the basic functionalities and capabilities. These core features may include analytics and reporting, real-time dashboards, reinsurance, policy generation, document management, alerts and reminders, and more. Any functionality that is responsible for the efficient functioning of the insurance company, the rest are just bells and whistles. Based on the identified parameters, businesses may identify the kind of dashboard they need, how they want their documents to be stored, and which workflows they want to automate. Over time, the core functionalities identified by the organization may also expand. They can then feature as an add-on in the later stage, which means that insurers should also seek out some form of modularity to add and subtract features.
#5: Account for Scalability
When choosing an insurance policy management software, businesses often overlook flexibility and scalability. Such oversight can impede the long-term value of the software. For instance, several insurance companies start on a basic insurance policy administration software, only to later find that it no longer meets their requirements as they expand and scale. However, modern-day, future-forward insurance policy management software solutions can grow and adapt to meet the changing business needs. As such, businesses must focus in advance on finding a system that can grow along with the enterprise and adapt to the changing needs.
Traditionally, insurance businesses relied on disparate systems and manual methods to manage policies. However, now they are moving to advanced insurance policy administration software solutions. These tools come with automation capabilities and help insurers scale their operations. With the right insurance policy management software, they can unlock an array of business benefits.