Policy administration can be defined as complete life cycle management of various forms of insurance policies. Such systems are used to perform several core policy-processes like rating, quoting and underwriting. Various types of systems for different types of policies are collectively referred to as Policy Administration Services (PASs).
However, PAS is not a one-size-fits-all solution. Different insurance formats are administered by different types of PASs. For instance, the Life insurance and Annuity or L&A platform mainly involves individuals investing sums to receive steady income either after the insurer’s death or after a fixed point in the future.
The second platform deals with Property and Casualty insurance. It is commonly known as P&C Core Insurance platform. These broadly focus on company employees, customers, and partners. However, all systems consist of some core components which are common to both platforms.
All insurance systems have one common function. Both types of systems contain the complete record of a policy, including creation, renewal, and restatement. They also include support for reporting and analytics to check performance indicators and ad-hoc analysis. They also include portals and apps to help with functions like self-service and billing. All systems provide support for quoting, issuing, and renewing of policies. In other words, the platforms include features for both administration and for the clients. However, product offerings differ as per the segment the vendor caters to. However, some features are common to both platforms, and vendors are incorporating new technologies.
What are some of the technologies most vendors are incorporating into their solutions?
The features being increasingly incorporated include Business Intelligence (BI) and Machine Learning (ML) for claims and underwriting. With an increased scope on digital ecosystems, vendors are opting for more open platforms for integration with a wider range of third-party systems.
Integration plays a key role in enhancing the platforms’ key capabilities. Integration makes maintenance and software updates easier. Integration also makes sharing algorithms, products, and processes easier. Moreover, the system can access and process greater amounts of data from various channels. The vendors are also putting in more capabilities to add to the value chain.
To achieve this goal of adding more capabilities to their solutions, vendors are now partnering with other developers to turn their solution into a platform by adding capabilities like BI, IoT, digital advisors and chatbots. They are also taking to newer technologies like cloud computing and SaaS (Software as a Service).