Today’s cloud-based policy administration systems (PAS) are designed to enable both property and life insurers to manage policies throughout their lifecycle and form the foundation of insurance carriers’ digital strategies. These types of platforms are a boon for network operators looking for ways to improve their customer relationships and develop more effective offerings. However, many network operators do not utilize the full potential of these systems.
Freight forwarders know that they must introduce digital processes in order to remain competitive Cloud-based technology can accelerate this change. We see many of our customers implementing PAS platforms to take the first steps toward more effective digital operations. While implementation comes with its own challenges, the real challenge lies in driving value over the long term and maximizing the capabilities of the platform to achieve larger business goals.
The advantages of a PAS platform
Carriers often implement PAS platforms with the aim of modernizing their processes and becoming more agile in the market. However, many carriers lack a continuous delivery plan to ensure they are truly taking advantage of the new platform, such as: Product and feature flexibility, experience personalization, rating and pricing flexibility, and acceleration through regulatory requirements.
Measuring the impact of a PAS implementation
To be successful with policy administration system (PAS) platforms, it is important that insurance carriers establish methods for measuring the impact of the platform on their business. Given recent inflation trends, airlines will need to determine how quickly they can implement rating and pricing changes using the new PAS. This metric also provides insight into how quickly they can develop new products and features and offer them to their customers. Given that insurance departments often object to submissions, the ability to quickly make changes to insurance products will be a critical measure of success. Operators should also develop a continuous review loop to see how the platform performs over time. This will help them identify areas where the platform can be improved and make necessary changes. Effective measurement should be the basis for improvement. When it comes to seeing results from a PAS implementation, the key is to continually review the effectiveness of the solution and look for opportunities for improvement based on performance data. An important outcome that carriers need to examine is whether they have been able to deliver innovation to their customers using the platform. Has the PAS solution enabled the company to effectively anticipate market needs? Have new products been tested and released continuously and in a timely manner?
Data accuracy is crucial
PAS platforms should help network operators measure whether their innovation is generating ROI and allow them to quickly move to iterative products when necessary. To achieve this, carriers must ensure that data coming from the PAS platform is accurate and that data accuracy issues do not negatively impact claims or billing systems. They also need to consider whether they are fully leveraging the data they have. Ideally, network operators would be able to extract the data and use AI and data science to perform analysis and generate insights, which are then fed back into the PAS platform for users to engage in data-driven decision making. For example, rates in production should be updated as quickly as possible, with rate changes occurring as quickly as the pricing and actuarial teams provide feedback.
Optimize your investment with post-implementation health checks
By establishing a recurring health check of the entire PAS product and related business areas, network operators can ensure alignment with the initial implementation goals. These health checks should serve as the basis for new goals.
In addition, the health check must also take into account the operating costs of customer service representatives and underwriters. The PAS platform must create more growth opportunities while reducing costs and increasing efficiency. Operators can measure success by comparing team productivity before implementing the solution and comparing current effectiveness to predictions at the time of implementation. Finally, operators can zoom out and check whether the solution helped the team develop revenue-generating products. You should consider whether product teams have used data: to determine whether rich data is readily available or whether data is still siled in different legacy systems. Product teams should use data to inform their product strategies, and a PAS solution should provide a more holistic view of customer data across the organization. If carriers determine that data optimization is still an issue, they will need to re-prioritize encouraging adoption of data-driven processes or consider whether the platform itself is creating barriers to data access.
If you’re looking for ways to get more out of your PAS investment, I’d love to get in touch. Feel free to contact me here.
Get the latest insurance industry insights, news and research straight to your inbox.
