If you’re keen, you must have noticed many businesses are opening up to insurance policy administration software. In fact, a recent study by Verified Market Research claims that its market size has already exceeded the $3.7 billion mark and could reach $6.6 billion in the next few years.
This growing statistic only proves that this software is beneficial. If you’re wondering how it benefits businesses, you have just arrived in the right place. Almost every sector is benefiting from the ongoing digital revolution, and the insurance sector has not been left behind.
Driven by the need to improve customer experience and operational efficiency, this system now allows companies to optimize workflows and automate policy management processes. To learn more, why don’t you hang around?
Reducing operational costs
Anyone who’s been in business for some time will agree that ignoring operational costs can really injure your profits. In fact, studies show that close to 48% of businesses fail within their first five years, with poor management being one of the main causes. With insurance policy administration software, you can centralize all insurance policy data, saving the time employees would have used to locate relevant information.
This also prevents context or platform switching, which can be distracting and derail productivity levels. Easy access to data also allows you to make quicker decisions, so even if you need to create a new policy for a returning client, you won’t be pressured to find all the associated details.
Better experiences for policyholders
By the way, do you actually know that acquiring a new customer could cost you anywhere between 5 and 25 times more than keeping existing ones? Plus, encouraging loyalty can really be beneficial since retained customers tend to buy more often than newer counterparts. And that is why you may want to use the right policy administration system to improve customer retention.
Remember, we said these systems can help streamline workflows by improving data access. Since agents, customer service representatives, etc. may prefer experiences that allow them to offer customer-focused products, such benefits can really be handy. Empower policyholders using self-servicing options that allow them to view or modify policy-related issues without necessarily raising tickets. That way, you reduce resource wastage as you no longer need to attend to policyholder requests.
A great tool to advance your marketing strategies
Many businesses now rely on data to make informed decisions. In fact, it seems that companies that ignore data in the coming days may soon be out of business. Let’s assume you want to attract new clients. How will you do it if you have no clue about them and their needs?
The data collected on a PAS can help segment clients based on their demographics and preferences. That way, you can tailor strategies that work well with each group. Plus, you can use the data to anticipate client needs and offer solutions. And now that, according to HubSpot, 99% of marketers claim that such strategies greatly improve customer relationships, your brand can really benefit.
What should you consider when selecting a PAS system?
Scalability
Well, as simple as it may seem, your chosen system should be able to grow with your business needs. Think of it this way: you’ve been running a marketing program for services, leading to millions of people visiting your platform. But because you hadn’t envisioned that, you begin to experience lags, inconsistencies and delays. This is definitely not something you’d want. Therefore, a proper PAS should be able to cater to changes in the business structure, handle increased data loads, and so on.
User-friendliness
This is a no-bargain because almost everyone wants to interact with user-friendly platforms. In fact, in the business world, some experts believe that more than 88% of users might never return to a platform after a bad experience. Adopting an easy-to-use PAS with intuitive interfaces can really improve productivity, as the staff has an easier time completing tasks.
Vendor support and security
We are in a time when cybercriminals are hungry for data, and if they get any opportunity, they can cause a lot of harm. If we are actually to look at the statistics, IBM claims that the finance and insurance sector was the second most attacked industry, accounting for about 18.2% of worldwide cyber incidents.
Remember, the PAS will handle sensitive data, implying that strong security measures will be needed. It follows that the vendor should provide regular updates and prompt technical support in case any issue arises. You don’t want to be a victim of an attack just because you’re using outdated systems.
What is the conclusion?
The digital revolution seems to be a new order in every form of business—not only in insurance and related sectors. As customers seek better experiences, businesses are also looking for ways to optimize their operations. As a result of these changing preferences and the growing need to address them, technologies like insurance policy administration software have good grounds to spread.
It’s actually one of the reasons why many recent organizations expect its market size to increase. As you have already seen, this software is helping businesses improve customer experiences and operational efficiency, among other things. Given that we are possibly at the infancy stage of what might become the new norm, we might see more of its adoption in the coming days.
