Many insurance companies that rely on legacy policy administration systems are impeded from achieving rapid growth and digital transformation needs. The complicated and antiquated legacy architecture is plagued by ballooning IT maintenance budgets that are necessary to keep the systems operational. As the insurance industry as a whole is undergoing a digital transformation, it will be continuously more difficult to remain competitive without upgraded software systems that have all the necessary features.

Insurance Policy Administration System

A policy administration system is a digital tool that helps insurers to handle the entire policy lifecycle by streamlining numerous operations such as rating, quoting, and renewal. Administration systems are also involved in underwriting and risk management processes.

However, these systems are generally inflexible and hard to customize. Most policy administration systems offer the following capabilities to insurers:

  • Policy Management: They keep an extensive product catalog and assist with the building of policies.
  • Billing Calculation:  Processes such as claims, reimbursement processing, and commissions are handled.
  • Underwriting: Involves managing eligibility requirements and customer ratings.

The fundamental challenge carriers experience is when these critical functions are built into the systems themselves and require time and resources to be changed.

Policy Administration Software Optimization

Despite the fact that the insurance industry is still plagued by legacy technology bottlenecks, many insurance carriers have started taking steps toward modernizing their dated systems.

An updated policy system allows insurers to make personalized insurance policies while also providing automation features that cut down the time to market.

Updating Policy Administration Software Tools

Insurance carriers use software tools that are powered by rules to enhance general performance and improve product offers.

A business rules engine is a pluggable piece of software that connects to a legacy software solution in order to streamline critical tasks such as underwriting, product and claims management.

Therefore, non-technical business users can develop and manage custom models giving them an edge over the competition without waiting months for the IT team to make the necessary changes.

Advantages of Improving Insurance Policy Administration Software

Insurers can enjoy rapid growth by updating their legacy administration software systems with rules engines:

  • Customer Experience: Deliver relevant insurance policies in a timely manner to boost customer satisfaction.
  • Product Management: An updated policy software tool empowers non-technical business users to generate new and appealing policies necessary to address the ever-evolving market conditions.
  • Streamlined Underwriting: Powerful business rules engines enable insurers to automate and manage underwriting tasks quickly to accelerate policy issuance.

Rules-based policy administration systems allow providers to carry out rapid product development, shorten time to market, and cut down on overall operational costs.

Policy Administration System Update: Bottom Line

The many systems and processes that are integrated into legacy systems make replacing an existing policy administration system an expensive and overwhelming task.

Business rules engines optimize the overall performance of policy administration software by streamlining critical processes, from underwriting to policy renewal, and claims management.

By using rules engines, insurance companies are able to thrive in changing market conditions.

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