When you break down the insurance process, there are three core pillars of operation: Policy Administration, Billings / Accounting, and Claims Management. For programs with a core solution, each of these pillars of operation should be bound together in a single solution. Enabled by your core solution vendor, your internal teams can communicate and collaborate across the business, leading to the successful execution of an insurance program. And although this is a huge leap towards digitally transforming the business, it opens the floodgates to future technological opportunities.
By aggregating an insurance program’s data into a single source of truth, industry leading organizations uncover new and innovative ways to leverage this repository to drive premium, reduce their combined ratios, and provide greater services to their members. Below are a few examples of the ways that leaders in the industry are using technology integration partners to double down on their organizational goals:
Predictive Analytics with Artificial Intelligence – There are several solutions that have taken hold over the last 5 years, that hang their hat on their ability to score and assess future risk, based upon emerging trends within policy data. Using artificial intelligence (AI) and machine learning (ML), these vendors provide real time risk scoring based upon the data collected by an underwriter. This sets up underwriters to judge the policies that they are putting together and account for all risk considerations, prior to bind and, in turn, can save insurance companies significant amounts of money, by helping ensure they are not over leveraging themselves on each line of business.
Data Transference and Industry Reporting – A massive lift for insurance companies is the regulatory reporting requirements to various institutions like the state and rating bureaus. This reporting can be a cumbersome process for insurers managing policy and claims – especially if they offer multiple lines of coverage across multiple states. Vendors have come along with solutions that streamline the reporting process and displace the burden of compiling these reports from your internal teams.
Claims Management & Payments – Effective management of claims is critical to the success of an insurance company. For this reason, there are countless vendors that offer solutions to help adjusters execute on their day-to-day. One area of emphasis is assessment, repricing, and review process for payments. For instance, with workers compensation claims, there are vendors that provide medical bill review services. These services are directly integrated into core solutions and enable adjusters to have up-to-date payment information about each of their claims, with a full explanation of benefits logged within the system. This helps them avoid the manual entry of this data so they can spend more time reviewing the details of each claim.