My previous blog post highlighted three key characteristics of a next-generation policy administration system.
Here are two other important qualities, both of which have been reinforced by the COVID-19 (coronavirus) global outbreak.
Cloud and Managed Services
Insurance companies, faced with the need to become more agile and differentiate their businesses from their competitors, are prioritizing digital transformation. To achieve these goals, they are opting for cloud-based platforms.
Many customers demand cloud solutions based on the cloud of their choice, so the system should work on any cloud – Amazon AWS, Microsoft Azure, Google Drive, etc. Novarica predicts that 50 percent of insurers will license a PAS for new accounts though a cloud-based (or partially cloud-based) approach by 2023. A Gartner legacy modernization survey of life insurance CIOs revealed that 60.4 percent said that cloud computing will play a major role in their organization’s strategy when modernizing their core systems.
The implementation of cloud-based applications and outsourcing IT to external service providers are changing the way insurers approach marketing, delivery, technology and customer service.
Focus on the Customer Experience & Automated Processes
Insurers must deliver a personalized experience and minimize the interaction for their existing customers, whose details are all available digitally. Differentiation in the market depends on supporting insurers in building reduced-cost, integrated solutions and offering consumers multi-channel experiences.
PAS digital capabilities must make core functions and data – such as pricing, product availability, logistics, quality, financials, etc. – available for customer-centric operations, to ensure a supreme customer experience. Next-generation PAS should support automation, analytics, real-time analysis and reporting, and interconnections, so that insurers can seamlessly work in the digital sphere. This will allow them to offer customers intuitive, fully-guided self-service capabilities, such as managing their own quotations and renewals, and tracking their policies across all devices and browsers, while cutting down on confusing jargon and speeding up time to market. People expect a next-gen PAS to be integrated and offer personalized solutions across multiple channels and browsers, at a reduced cost.
My next blog post in this series will look at pre-coronavirus trends in the PAS market.