With policy management core to risk exposure, relying on outdated systems can lead carriers to underperformance and hold carriers back from success.
A carrier’s profitability depends on how well it understands all the risks it insures against. If risk is underestimated in a policy, the carrier could pay out more than it receives in premiums, greatly affecting its profitability.
So, how can carriers better tame their risk exposure to ensure profitable growth? According to Pete Crowe, president, Team Focus Insurance Group, it’s all in how they manage their policies, and today, that requires a system offering easy integrations, and advanced analytics and reporting capabilities.
Legacy systems hold back growth, inhibit integrations
Many insurers’ systems date back to the 1980s or 1990s when mainframes ruled, and that’s a big problem for carriers that want to be competitive. “Legacy systems lack integration, which affects the flexibility and capabilities needed to connect with other systems and reinsurance partners,” said Crowe. “These clunky systems make it impossible to obtain advanced analytics and execute reporting, which greatly impacts their ability to assess risk and make decisions. Simply put, legacy systems are holding back carriers from success.”
One reason carriers resist wholesale modernization is cost, another is fear of disruption to their daily operations during the upgrade. Both concerns are valid, however, depending on the insurtech vendor selected, they may not even be an issue. For example, with Focus Technologies’ PolicyPort®, functionalities can be rolled out gradually, with minimal disruptions to business. In this way, carriers can realize improvements while still maintaining daily operations before the full upgrade is even complete. (Focus Technology is a subsidiary of Team Focus.)
Mastering policy management, mitigating risk
With the fear of disruption addressed, the question of whether to upgrade becomes “Why not?” And then, it’s important to define the characteristics of the ideal system.
In order to be successful, updated policy management systems must be intuitive and easy to use. A successful system should leverage advanced data analytics to empower carriers with increased speed-to-change and speed-to-market, while also mitigating risk exposure. These systems are even more valuable when they allow real-time integrations with reinsurance partners.
In the end, contemporary systems help carriers remain stable and grow profitably. The stability and success of carriers benefit not just carriers, but also agencies, consumers and the entire insurance industry. “When carriers are empowered to innovate and create new insurance products and services, they can better serve their customers, which supports the overall health of the insurance industry,” said Crowe.
Better, faster and more flexible insurance policy management software
With PolicyPort, the insurance professionals at Focus Technologies offer an innovative, cost-effective and easy-to-use SaaS-based policy management system created specifically for carriers. By leveraging PolicyPort, carriers have a configurable and flexible system that leverages advanced data analytics and reporting capabilities to aid carriers in making the most informed risk assessments and decisions.
“For carriers, how they manage policies is at the core of their risk exposure and therefore, their profitable growth,” said Crowe. “Insurtech leaders like Team Focus recognize this need and have been developing technology and systems to help carriers do just that.”
