What to Consider When Replacing Your Policy Administration System

You’ve been talking about changing your policy administration system for some time but are unsure about taking the plunge. It’s a big commitment in financial and human resources. What you have works, well sort of, albeit with workarounds here and there. The fact is technology has evolved and you’re missing out on capitalizing on more revenue-generating opportunities and gaining increased operational efficiencies by hanging on to a legacy system.

Source: ProgramBusiness.com | Published on September 7, 2022

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Before making the move to a new policy admin system, think about the following considerations:

  • Have you talked to your staff – each department – about the limitations of the existing system? What frustrates your staff in working on the system? What would they like the ability to do easily and fast? How would a system change impact your employees’ workflow and productivity? For example, how will the system impact your claims staff in administering and managing claims? Would it have a positive impact on your insureds?
  • Is your staff ready to embrace and implement a system change? You want everyone on board and excited about what a new policy admin system has to offer when it comes to policy rating and issuance, billing and accounting, claims administration, renewals, task management, etc.
  • How well will the new policy admin system integrate with the third-party systems/vendors? One of the goals of switching to a new system is to be able to better facilitate data sharing, saving time and money.
  • Will you replace the entire system or specific functionalities? Consider what works and what doesn’t on your existing system and see how the vendor can help.
  • What’s your budget? In looking at the numbers, be sure to review the lost opportunities (and revenue) in utilizing an outdated, cumbersome system.
  • Will it be fairly easy (painless) to migrate from one system to another? You want minimal conversion time to go live with your new system.
  • What type of staff training on the new system is involved? Do the vendors you’re considering provide training and if so, to what extent? Onboarding your staff on the new system is critical in making the move.
  • Can you interact with the system anytime and anywhere? In this remote, hybrid work environment the ability to work from anywhere and get real-time information is critical as is easy mobile access.
  • How easily can you make changes, add new products and programs to the system? This is a critical issue as a carrier, MGA, and program administrator as you are continually looking to innovate with new products, address emerging trends, and expand your footprint with the agency distribution system.
  • What hosting solutions are available? Also, consider the security measures in place to keep your data safe.

If you’re looking for an advanced, modern, and flexible system that will support your goals moving forward, it’s time to consider switching to a new policy administration system. Your legacy system is holding you back and making it difficult to remain competitive in an environment where others have moved on with digital platforms that make the business of insurance easier for themselves, agency partners, and insureds.