When it comes to the issue of automating insurance management, there are generally two camps within the industry. The first consists of insurance carriers who are more than willing to embrace new automation technologies, perhaps because they have already begun digitizing their operations. The second consists of carriers who are hesitant about the change an automated system may bring. Perhaps they’re worried that such a system is nothing but a cash drain that can’t guarantee any returns. Other carriers in this camp may think that an automated system will go against the traditional, people-oriented values that their businesses are proud to uphold. There may also be those who are unwilling to shift to a new system because the new technology may be difficult to use. To them, depending on manual processes may still be easier and more convenient.
This article is for the insurance carriers who may still have cold feet about shifting to an automated insurance management system. If you want to know the advantages of doing so, you’ll find the answers below. Indeed, investing in new software that fully utilizes automation may be the best thing you do for your insurance business today. Here are five reasons to trust an automated insurance management system and use it to your advantage:
Greater Accuracy and Speed When Underwriting and Supplying Quotations
Perhaps the most obvious advantage of a fully automated system is how much quicker and easier calculations will become. That includes underwriting insurance policy prices and coming up with the optimal amounts to quote clients. Calculating these amounts manually, or from separately managed spreadsheets, may already be quite tiresome for your staff. Despite its tediousness, however, this kind of manual system is especially vulnerable to human error. And as you and your staff may already know, inaccuracies when it comes to pricing are costly.
In contrast to a manual system, an automated insurance management system will allow you to make these calculations with a great deal of accuracy. You’ll also be able to come up with accurate, optimized prices in half the time it would normally take. An automated system reduces the risk for errors in calculation and, consequently, the financial cost of such errors. That ultimately reflects in your company’s savings and is thus a plus point for your financial stability.
Greater Efficiency at Enrolling and Processing Customers’ Insurance Policies
Though some steps in the insurance processes may take time to complete, others shouldn’t. Your customers may not see the point of waiting for days just to clarify their enrollment status in real-time with an agent. They’ll benefit from wider use of automation technologies in your services, like an automated claims processing workflow or auto-renewal of policies with their consent.
For sure, the greater speed and responsiveness from the carrier will boost customers’ satisfaction. This will lead them to push through with their enrollment in the carrier’s insurance program, or renew it in the coming years. This is another important point that you should consider when it comes to an automated system’s impact on your revenues.
A More Organized and Streamlined Policy Management System
Yet another aspect of the insurance process that can be bolstered with automation technology is policy management. This pertains to customers who have already taken part in your insurance program and need updates on the status of their policy.
An automated system can competently manage individual customers’ profiles and streamline information dissemination, updates, and billing. They can simply receive important system notifications like these in their email, without your staff having to repeat these processes one by one. This way, your customers can come to expect timely and professional engagement from you. At the same time, this frees up your staff members so that they can concentrate on other tasks.
More Seamless Bancassurance Coordination
Many insurance companies have partnered with banks for bancassurance arrangements, or the ability to sell their insurance products to the bank’s client base. In themselves, bancassurance relationships can be extremely lucrative. But automation technologies can capitalize on those profits and guarantee them for insurance carriers in the long run.
One of the strongest arguments for an automated insurance management system is its contribution to bancassurance. The system can streamline what may be redundant or repetitive bancassurance processes and clear the path to straightforward, hiccup-free policy processing. It can also unite carriers and their partner banks to work on a platform with a single source of truth. That means that all parties involved in bancassurance can act in accordance with a consistent, consolidated body of policy data. If the automated system can strengthen your operations with your partner bank and keep this profitable arrangement with them hassle-free, then it’s worth adopting.
Stress-Free Compliance Checking
The last item in this list of advantages pertains to a common pain point of insurance companies: compliance with regulatory bodies. For sure, compliance is of utmost priority to your business, and you know the value of being on your regulators’ good side. But compliance may also be one of the most stress-inducing tasks among your business processes. There’s a lot of data to process, like evolving standards that you have to meet, but never enough time to account for all of it.
An automated insurance management system, however, can save you and your staff members a lot of grief about your compliance. For one, it can help you keep track of your routine compliance checking processes ahead of when you’ll be under audit. Artificial intelligence can also help you manage aspects that matter in compliance, such as customer data security and timeliness of financial reports. It won’t be as hard to prove that your company is accountable to regulators’ standards and will keep you in their good graces.
Some insurance businesses may still worry that automation technologies and cloud computing will substitute the hard work of insurance agents and staff. On top of that, perhaps they also fear that automation will take away the human-orientedness and customer-centric nature of their insurance programs.
But the opposite couldn’t be truer. Automation will never replace the human element of insurance services. You still need agents and staff to communicate company values and touch base with your customers about their individual insurance goals. What an automated insurance management system will do is complement the human-related side of insurance delivery. It can take care of the rote and computation-related work of insurance and allow carriers to focus on marketing, product development, and customer relations. In the end, technology can bring greater efficiency and precision to your insurance processes. At the same time, it will allow your company to cultivate its timeless and people-focused values—just for the modern renaissance of the insurance industry.