Migrating to a new policy administration system is a challenging task for any insurance carrier. Policy administration system is the core of the insurance business as it is the gateway to information into the company. It is a combination of various functions, files and workflows. With an effective policy administration system, carriers can achieve increased efficiency through reduced costs, improved business process, efficient management of complex paper work and customer service requirements.
Policy administration systems have multiple legacy systems, various business processes tangled together and silos of customer data. Further, these systems are connected with most departments in an organization, so making a change or migrating to a new one needs a lot of planning. This article discusses things you need to consider while migrating to a new system.
Ease of data sharing: A Policy administration system is connected with many other applications in the organization. Sharing of data, information and workflow among various departments happens regularly. So, make sure that the new policy administration system you are planning to take enables effective data sharing. Data sharing enables carriers to pull data related to various processes like underwriting, servicing, renewing, and so forth to apply analytics.
Ease of operation: The new policy administration system should come with overall ease to use. The user interface and navigation of the system should be in such a way that employees can learn and access it immediately once the software is installed. This avoids depending upon a third party to train you employees.
Ease of integration: Make a note of all the existing systems in your company. Make sure that the new policy administration system enables easy integration with all the existing legacy systems in the company. This avoids carriers to replace other existing applications to accommodate the new system.
Should enable proper data transfer: Data migration is one of the important aspects to consider while switching to a new policy administration system. The new system should enable easy and proper data transfer back and forth from the existing systems. Insurance carriers should also figure out the amount of legacy data that they want to transfer to the new system. This helps them to choose a right system which could accommodate the existing data.
Budget: Besides considering features of a policy administration system, consider the budget you can allocate for the new system. Since the project is large, if not fixed, the costs may go out of control. So, it is better to have a budget in place based on which, you can plan your product purchase.
Availability of a reliable software vendor: Once you are ready with the specifications you are looking for in a policy administration system, it is time to find a reliable vendor who can provides you with a system that matches your needs. Along with experience, the vendor should have expertise in providing good software products so that you can expect good return on investments.