#5 Deadly Sin of P&C Policy Administration
Today, I’ll be covering #5 in my series of deadly policy administration sins: failing to anticipate the evolving landscape of external systems.
From predictive modeling systems, to advanced forms, rating, underwriting and billing engines; to structured and unstructured third-party data, the external services and data available to P&C carriers have never been better. But there’s a catch…with traditional policy administration systems, it’s extremely difficult — and costly — to integrate with outside systems.
It’s common for it to cost major carriers as much as $250,000 each time a legacy policy administration system needs to be modified to connect to another system. And that’s not the end of it. Those integrations are version-specific — they must be re-written every time a piece of software is upgraded. The result is major coding projects running almost constantly, costing millions.
Not long ago, large insurance companies absolutely needed to rely on the deep functionality offered by specialized systems and outside services to remain competitive. As external vendors evolve and improve, it makes sense for the carriers to be able to take advantage of their offerings — and to do so quickly and efficiently.
That’s why our policy administration solution was engineered with a comprehensive integration architecture in mind. It allows for seamless integration with any other internal or external system through configuration — rather than coding — in as little as a few hours. Imagine being able to point to a new third-party data service or expert engine almost instantly and upgrade any system without revisiting the integration points.
It’s never been more important for carriers to leverage outside systems and services to improve underwriting profitability and enhance customer experience. With Sapiens’ solution, they can – resulting in improved customer service, enhanced data quality, reduced costs and increased profit opportunities.
For information on all the P&C policy admin sins, please check out my NEW white paper: The Seven Deadly Sins of P&C Policy Administration.
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John Pettit John Pettit is the head of Sapiens’ North American P&C Insurance Platform, with nearly two decades of experience in the P&C insurance market. He previously served as the founder, CEO and president of Adaptik Corporation, a North American insurance software firm that was acquired by Sapiens.