As I discussed in my previous blog post 3 Key Characteristics of a Next-Gen Pas, insurers are reevaluating their legacy PAS systems. Even before COVID-19, making changes to these systems was not easy. And yet, with the new capabilities available… sometimes change is beneficial.
We talked about faster time to market, configurability & self-sufficiency along with openness to external systems. However, there are additional qualities that are important when you are looking to make a decision: business continuity and customer experience.
Insurance companies, faced with the need to become more agile due to our “new normal”, are prioritizing digital transformation. To ensure business continuity and the ability to work from home, they are opting for cloud-based platforms. Look for a system that works on any cloud infrastructure.
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. Adding managed services to cloud enabled systems can give you some additional flexibility and peace of mind.
Focus on the Customer Experience & Automated Processes
Customer-centricity is prevalent in other markets and is making a big difference also in the insurance space. Insurers are now accelerating their plans for a personalized experience and minimizing in-person interaction for their existing customers.
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. The next-gen PAS needs to be integrated and offer personalized solutions across various channels.
Push for Personalization and Relevance
Consumers are surrounded by systems that know their preferences and personalize their digital interactions. Expectations are continuously increasing. Today’s consumers have no patience for receiving offers that are not relevant. They have an expectation of system familiarity with their personal details. Similarly, they expect insurers to know and understand their needs and to suggest offers that make sense. The next -gen PAS must be future proof and allow for personalization.
Supreme Customer Experience, Engagement & Automated Processes
Moreover, customers in the digital world expect a supreme customer experience, an omni-channel experience – wherever they are, whenever they want, however they want. This experience must be underscored by minimal interaction, without wasting time filling out reams of information already in the possession of the insurer. Such experiences can exist only by implementing new technologies that automate most processes, using some of the technologies previously mentioned to enable straight-through processing. This will dramatically enhance the customer experience and improve the insurer’s internal processes, while saving time, costs and reducing errors.
Insurers must empower consumers with the ability to manage their own policies and provide self-service capabilities. The necessity for a carrier to support the new digital customer and have a PAS that can extend these services is critical in today’s market.