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15 Ways predictive analytics is changing the insurance industry in 2024

Posted on May 22, 2023 by - Insurtech

According to research conducted by Willis Towers Watson, the third largest insurance broker globally, by leveraging predictive analytics, 67% of insurers have been able to reduce policy issuance and underwriting expenses and 60% of insurers have been able to increase sales and profitability.

With society becoming increasingly digitized and the Internet of Things, or IoT, rapidly expanding, there is a plethora of data sources to choose from today. The rate of software innovation means that analytics tools are only becoming more and more advanced, and are able to ingest these varied data types efficiently.

The big winner is the insurer, who can use these modern predictive analytics tools to make sense of this array of data, ultimately improving their understanding of and ability to predict their insureds’ behavior.

For example, P&C insurers are now collecting data from telematics, interactions with agents, interactions with customers, smart homes and the smart/IoT devices within them, and social media to better understand their customers’ lives and risk factors, improving claims management, underwriting decisions, and product development.

A related tool in insurance is predictive modeling, most often employed in the form of “what-if” modeling, which provides insurers with the ability to simulate various business scenarios. This allows insurers to evaluate the impact of an adverse event on their overall book of business..

COVID-19 has demonstrated to insurers that staying in front of change as much as possible is pivotal, and when employed correctly, “what-if” modeling can be a powerful tool to inform accurate changes in underwriting (ie. rate changes) and product design, and claims processing and management.

In an increasingly data-driven context, predictive analytics is changing the P&C insurance world in 13 impactful ways in 2024.

1. Pricing and assessing risk better

While it’s a well-documented use case of predictive analytics in insurance, pricing and risk selection have seen a marked improvement in 2024 in large part due to the availability of improved data insights. With the increased variety of data sources and higher levels of data fidelity and quality, the information insurance companies are collecting is more actionable, driving better decisions and outcomes.

As mentioned above, the data being collected now – sources like social media, smart devices, and agents’ direct interactions with customers – is more valuable because it is recorded directly from insureds. Data that isn’t being gathered from indirect sources (common examples are criminal records and credit histories) does not require interpretation to understand insureds’ behavior because insurers are receiving it directly (e.g. from social media).

More relevant data sources lead to more accurate insights, which in turn is empowering the engine of predictive analytics to deliver better outcomes in the form of improved pricing and risk selection. The rate of data collection from smart devices by insurers is growing rapidly (reported to be approximately 10 MB of data per household per day).

2. Identifying cancellation risks early

For insurers (and also brokers for that matter), the most important dates in the year are when the majority of policies are up for renewal, the biggest of which is January 1 followed by the first day of the remaining quarters of the year (April 1, July 1, October 1). For large customer accounts, multiple policies will share the same renewal (and expiration) date, so it is crucial for the health of the business that these customers stay with the insurer.

Acquiring new customers is important, but another key to success is keeping a high percentage of your existing customers on board. Assuming costs are steady, that is how you sustainably grow an insurance business.

Thus, insurers worry a lot about negotiating these renewal dates successfully and want to have as much advance warning as possible on the customers that may be looking to move their business elsewhere. That way, there is enough time to convince these clients to renew their policies.

Predictive analytics is playing an integral role in identifying the customers who are most likely to cancel or lower coverage and thus require special attention in order to secure the renewal of coverage. Thanks to more advanced data insights, insurers are having increasing success identifying customers who may be unhappy with their existing coverage and would thus be more likely to switch to a competitor during the upcoming renewal cycle early.

With more time for action thanks to early identification of cancellation risk, insurers are better able to maintain their books of business.

3. Forecasting fraud risk

Insurance companies are in a constant battle against fraud. According to The Coalition of Insurance Fraud, in the United States alone, $80 billion is lost annually from fraudulent claims. For insurers in the United States and Canada, anywhere between 5 and 10% of claims costs are attributable to fraud.

Predictive analytics is a powerful weapon against claims fraud. Insurers can identify and prevent potential fraud before it happens and even have the ability to take corrective action retroactively. Once again, insurers are turning to social media as it is also a great place to look for signs of fraudulent behavior. Even after claims have been settled, insured’s online presence is being monitored for suspicious activity that may be indicative that fraud has been perpetrated.

The use case of predictive modeling for fraud detection is clear. According to SmartDataCollective, “[where] humans fail, big data and predictive modeling can identify mismatches between the insured party, third parties involved in the claim (e.g. repair shops) and even the insured party’s social medical accounts and online activity”.

4. Intelligently prioritizing claims

In a modern society where information is at your fingertips and instant gratification is the order of the day, customers are looking for rapid, yet personalized, service more than ever. The details may change, but no matter the industry, making this a reality is always a challenge.

Nowadays, thanks to cutting-edge predictive analytics, insurers are indeed making good on this task. Predictive analytics is informing insurers on which claims to prioritize and when saving time and money while improving customer satisfaction and retention in the process.

Given the ability to forecast claims data, insurers employing predictive analytics command a strategic advantage through an unrivaled ability to tighten budgets weeks and months ahead.

5. Doubling down on customer loyalty

No matter the industry, no matter the product, brand loyalty is everything. Nowadays, insurers can use predictive analytics to analyze historical patterns of behavior of their loyal customers and anticipate what their future needs might be.

In most markets, for many P&C lines, especially the most standardized products, pricing, and product offerings are extremely competitive across many insurance companies, and brand loyalty becomes a huge trump card.

Insurers are utilizing information revealed by historical customer data to proactively optimize processes and products for the core of their customer base, helping them to strengthen brand loyalty proactively.

6. Placing outlier claims under the microscope

Increasingly, insurance companies are employing predictive analytics to help identify claims that unexpectedly become large losses, otherwise known as outlier claims. With state-of-the-art analytics tools, insurers are analyzing previous claims for similarities, and once identified, automating alerts to claims specialists to ensure special care is taken with these claims.

Predictive analytics tools provide insurers with advanced notice of potential losses and the related complications, helping them to reduce the frequency of outlier claims and the resulting detrimental financial impacts.

7. Reworking claims processing

With predictive analytics, insurers are varied data sets to determine the true course and nature of events, which therefore affects claims outcomes. Using a data-driven method as much as possible has streamlined the process and helped the claims department to reduce risk of human error.

Equally, thanks to the availability of historical data through predictive analytics tools, insurers are analyzing past claims processes and improving their efficiency, as well as continuously iterating documentation on best practices in claims.

8. Ensuring effective data management practices

In the course of conducting business, insurers generate and collect a massive amount of data. For many years, this data was woefully underutilized, both due to ignorance of the possibilities of data-driven insights and insufficiently advanced technology to parse its complexity and harness it effectively.

Thanks to modern technology and greater awareness of the value of data today, neither of these issues is holding back the insurance industry any longer, and predictive analytics is helping insurers make the most of their data, whether it be more accurately predicting customer behavior or reducing inefficiencies in the underwriting process.

However, insurers can only extract insights from their data with excellent data cleaning, preparation, and management. If data is scattered across a siloed architecture, it becomes difficult to properly clean it and systematically organize it in data warehouses.

Without a unified approach to system architecture and data management policy, the fidelity of data is lost, and predictive analytics isn’t possible.

9. Leveraging data modeling

Once effective data management procedures are in place, insurers can start to leverage the capabilities of data modeling for business growth.

Data modeling enables insurers to construct robust knowledge bases on their customers, and in turn quantify customer profitability through the identification of likely cross-sell and upsell opportunities, which are based on the unique characteristics of the customer.

Informed by powerful data models – the result of intelligently putting together data-driven insights made possible by effective data management – insurers are able to deliver tailored solutions to their customers at scale and on-demand in the cloud.

10. Discovering new growth markets

Predictive analytics can help insurers uncover new markets or better target existing markets it serves. Through data analysis, insurers can learn demographics and key patterns of behavior, enabling them to precisely tailor marketing efforts.

In a social media age, where 3.2 billion people use social media globally, the rise of influencer marketing and other types of social media marketing are increasingly important to holistic marketing strategies.

11. Building a deeper understanding of the customer

According to TechTarget, the 360-degree view is “the idea that companies can get a complete view of customers by aggregating data from the various touch points that a customer may use to contact a company to purchase products and receive service and support.” Through predictive analytics, insurers are able to pull together data and insights from multiple sources to inform a complete understanding of their customers.

Prior to the rise of predictive analytics, insurers could only extrapolate the profile of the average customer from a basic set of information (e.g. demographics), which resulted in largely misunderstood customers and suboptimal revenues. Today, the opposite is true thanks to the use of predictive analytics tools in insurance.

12. Providing a personalized user experience

Whether shopping for a suit or insurance, customers are seeking a tailored experience curated especially for them. Insurers are using the actionable insights generated by predictive analytics to come up with a far better understanding of their customers, and how best to serve them in an online world.

Philosophies like the 360-degree view help to precisely detail the profile of customers, allowing insurers to then customize the end-to-end user experience from products and pricing to policy servicing and claims settlement.

Such personalization ultimately makes it far more likely that the customer buys insurance from them, and by serving customers so well, referral business also increases dramatically, lightening the load on marketing efforts and reducing campaign spend.

13. Hyper-customizing the product

At the core of a personalized user experience are products truly customized to each individual customer in the small details. In the past, this simply wasn’t feasible at scale with the legacy technology utilized by insurers, but with ever increasing amounts of IoT data available and recent leaps in machine learning and artificial intelligence, true product customization is now possible.

Leveraging the latest advances in machine learning technology, insurers are utilizing predictive analytics on customer behavior, buying preferences and pricing sensitivity to offer the most relevant insurance products to their customers at scale.

14. Cutting costs

Put simply, predictive analytics is a tool empowering insurers to make better decisions. These decisions lead to actions that are ultimately driving better outcomes, and over time, those original insights no longer retain their novelty – because they have already been filtered down into existing processes.

Of course, then the next batch of insights is delivered through predictive analytics, and once the next set of winning actions emerges, the cycle repeats itself. Previous insights become the backbone of current processes.

Not just any processes – better, more efficient processes. Ones that reduce costs, and increase the bottom line. It’s that simple. That’s the power of predictive analytics.

15. Reaching customers where they are

Predictive analytics is a powerful tool that enables insurers to effectively utilize digital distribution channels and connect with customers on platforms they frequently use. By leveraging advanced data analysis techniques, insurers can gain valuable insights into customer behavior, preferences, and needs. This information allows insurers to segment their customer base and tailor their digital distribution strategies accordingly.

Predictive analytics helps insurers identify the most suitable digital channels for reaching their target audience, ensuring that resources are allocated effectively. Furthermore, by analyzing historical data and patterns, insurers can create personalized marketing campaigns and offers, increasing the likelihood of converting leads into customers.

Predictive analytics also assists insurers in accurately assessing risk and determining appropriate pricing strategies. By analyzing vast amounts of data, insurers can create predictive models that evaluate potential risks associated with customers. This enables insurers to communicate precise pricing information through digital channels.

Moreover, predictive analytics helps insurers identify early warning signs of customer churn and implement proactive retention strategies. By analyzing customer interactions and behavioral patterns, insurers can identify customers at risk of leaving and intervene with personalized retention efforts delivered through digital channels.

Finally, through continuous analysis of key performance indicators, insurers can gather feedback on the effectiveness of their digital distribution efforts and make necessary adjustments to optimize their strategies. In summary, predictive analytics empowers insurers to leverage digital distribution channels effectively, connect with customers on their preferred platforms, enhance personalization, optimize channel selection, and improve customer acquisition and retention efforts in the digital realm.

Looking Ahead

In the future, predictive analytics will become increasingly prevalent thanks to its ability to deliver actionable insights for insurers across the entire value chain. Investing in talent possessing the technical knowledge to maximize its potential will be a cornerstone of recruiting strategy in the coming years, given the potential for insurers to build a lasting competitive advantage in human capital.

Predictive analytics is most effective when layered upon a modern technology platform. CoverGo is the first no-code insurance platform for rapid product development, omni-channel distribution, and streamlined policy and claims management, helping you build a truly robust insurance ecosystem.

Best of all, CoverGo can be integrated with any predictive analytics tool on the market thanks to a suite of more than 500 APIs. Contact us today to arm yourself with the ability to utilize predictive analytics to its fullest capabilities.

5 Trends in Digital Health Insurance Systems

Posted on May 19, 2023 by - Health Insurtech

Key takeaways:

  • Personalization is crucial: Digital health insurers must focus on providing personalized experiences and coverage tailored to individual customer needs to improve retention and loyalty.

  • Embrace no-code tools: Utilizing no-code platforms can enhance speed to market, improve customer experience, and automate processes, ultimately benefiting the insurance business.

  • Utilize wearables: Leveraging data from wearables can aid in underwriting risk, product innovation, and attracting younger uninsured prospects with personalized plans.

  • Explore embedded insurance: Embedded insurance offers added coverage without additional hassle, reducing administrative costs for insurers and improving customer retention.

 

It’s no secret that digital technology has completely transformed how healthcare operates.

From providing healthcare services right at the doorstep of customers to leveraging AI to analyze and interpret vast amounts of data for making an accurate diagnosis — the digital transformation has happened at an unexpected pace.

But what does this mean for digital health insurance systems? What are the emerging trends you need to know? This is a question many health insurers find themselves wondering about.

Sounds familiar? We walk you through five key trends for digital health insurance systems to help you future-proof your business.

1 – Personalization is the way to go

Right from ordering a cup of coffee to opening an account with a bank — the new-age customer expects everything to fit their needs to the T.

When it comes to health insurance, the situation is no different.

The success of a digital health insurance system depends on providing customers with exactly what they need. With changing times, the relationship between the insured and insurer is moving away from being merely transactional, where the insurer’s role is restricted to getting premium payments and sending renewal notices.

On the contrary, digital insurers need to treat their customers as individuals who are looking for tailored experiences and coverage based on their unique needs.

Insurers who understand the individual preferences of customers and offer personalized digital health plans will have a better chance of getting more business. Those who can think beyond basic details such as gender, lifestyle, or age and dig deeper into other measurable health parameters will succeed in delivering superior customer experience, boosting customer retention and loyalty.

There are countless ways for digital insurers to personalize their offerings. For starters, health insurers can collect data from the social media profiles of their customers and use AI to evaluate their behavior. The information gathered can be leveraged for drawing up a customized plan.

2 – No-code product development

For an insurance customer today, the need for speed is real. Once they land on an insurance platform, they expect their user journeys to seamlessly lead them toward their end goal.

Even the slightest delay in the signing up process or filing claims increases the churn rate. And no matter how quickly insurers try to address the issue with the code on the platform, customers are unlikely to wait!!

To deliver better services and meet customer demands, digital health insurers must embrace no-code tools. Apart from helping insurers ship out better apps at a faster rate, no-code platforms also improve customer experience.

For instance, customers no longer need to call a dedicated customer care service to resolve issues they are facing. The platform can be trained to offer real-time responses to their queries. You can completely automate the system to ensure all grievances are addressed promptly.

Not convinced how a no-code platform can benefit your insurance business?

Check out Insured Nomads who wanted an efficient tool to improve their speed to market health insurance solutions. While other tools in the market failed to be configurable enough to address their specific needs, CoverGo’s fully configurable no-code platform allowed Insured Nomads to build and launch new health insurance products in days, gaining an edge over their competitors.

3 – The rise of wearables

Another trend in digital health insurance to watch out for is wearables. Wearables are not new. But their user base has gone up with more people opting for fitness trackers and smartwatches to keep a close eye on their health.

So how does it help insurers?

They get access to bespoke health and behavioral data which can be analyzed for underwriting risk. Data collected through wearables is more reliable compared to self-reported disclosures. Insurers can also utilize the data to reward policyholders through discounts on premiums or free yearly health checks, improving the overall customer experience.

Easy access to tech-backed data aids product innovation for health insurers — they can now design policies to target risks that were previously uninsurable and also attract younger uninsured prospects with personalized plans.

Lastly, wearable tech may identify potentially relevant information about an individual’s health by tracking their lifestyle which may have a direct impact on product pricing.

4 – Embedded insurance

Embedded insurance has been hailed as the future of selling insurance.

For health insurance, embedded insurance can unlock new opportunities for all stakeholders.

For the insured, receiving additional coverage without the hassle of purchasing a separate policy is a major attraction. For example, getting a combined plan that provides coverage for dental and vision health instead of purchasing separate policies.

For the insurer, embedding brings down administrative costs. No longer do they need to deploy resources dedicated to managing multiple policies for a single customer. Embedding also helps in improving customer retention, especially when customers view the embedded product as a value-add from their insurer rather than being arm twisted to make an additional purchase.

CoverGo offers 500+ insurance APIs that can be seamlessly integrated with any legacy or third-party systems. As a result, embedding insurance policies anywhere the insurers want is a cakewalk.

5 – Superior claims management

Claims management has always been the Achilles heel of the insurance business.

The rising costs and managing the complexity of claims have emerged as critical challenges for insurance players worldwide. A survey by McKinsey revealed that 1 out of 10 claims are usually incorrect. But the real challenge lies in successfully weeding out those claims, as you need an army of staff to painstakingly review each case.

An easy fix to eliminate repetitive and time-consuming tasks through automation of the claims management process. A rising trend in the digital health insurance space, automating claims management can help insurers achieve lower operating costs by eliminating siloed functions. It also helps to improve customer experiences by getting rid of the roadblocks.

A fully digital claims management system means very few touchpoints for human intervention. Insurers can transfer all claims to a cloud platform in real time where algorithms can start auditing the claim based on data available such as:

  • insurance status of the claimant;
  • coverage offered under the policy; and
  • supporting medical records

With CoverGo, you get access to a modular platform that can be seamlessly integrated into your existing system for processing claims digitally. This is exactly what helped AXA Thailand, which was on the lookout for a scalable solution that could easily integrate within their existing system, minimize manual processes, and improve their claims process. Migrating to CoverGo’s claims portal helped AXA to automate part of the claims process and also train their staff to process claims digitally.

Not only is AXA able to pay out claims a lot faster, but it has also managed to clock in up to 80% cost savings on its claims operations process.

The need to keep up with trends is real

Health insurers have no choice but to transform themselves with the changing landscape. Staying relevant in a hyper-competitive market means being able to penetrate newer markets, launch products quickly, and implement scalable solutions.

When you think of succeeding in the face of fierce competition, nothing works better than strategizing in advance.

If you’re looking for a core end-to-end healthcare platform that can assist you to set up your digital ecosystem and help with product building, insurance distribution, and policy administration, look no further.

Schedule a demo with CoverGo right now.

FAQs

Why is personalization important in digital health insurance systems?

Personalization in digital health insurance systems is crucial as it helps insurers understand individual customer preferences and offer tailored experiences and coverage. This leads to improved customer retention, loyalty, and overall satisfaction.

How can wearables benefit digital health insurers?

Wearables provide insurers with access to reliable health and behavioral data for underwriting risk, product innovation, and customer rewards. They also aid in attracting younger uninsured prospects with personalized plans.

What is embedded insurance and how does it benefit stakeholders?

Embedded insurance involves integrating insurance coverage into other products or services. It benefits insured individuals by providing additional coverage without separate purchases and helps insurers reduce administrative costs and improve customer retention.

Health insurance disruption is killing the legacy core system

Posted on May 18, 2023 by - Health Core Systems

Key takeaways:

  • Insurance companies face challenges due to outdated core administration systems.
  • Timely action is crucial to stay competitive and relevant in the evolving market.
  • Legacy systems hinder innovation and customer experience improvements.
  • Modular and flexible technology solutions offer a way forward for insurers.

 

For insurance companies, one issue has been ever-present in recent years, and the longer it has gone unsolved, the bigger it has become. The culprit is the core administration system: the bedrock of the insurer’s aging technology architecture, and symbolic of the insurance industry’s failure to innovate and meet the rapidly evolving demands of customers. 

Change to compete, or stand still and surrender market share

The market may not have previously demanded this issue be solved, but that has changed according to Deloitte Insights, which recently authored an article titled “Digital disruption for health plans: It isn’t coming, it’s here”. P&C and life insurers have already begun addressing their legacy core administration systems and the myriad problems they cause, and if health insurers want to continue to be relevant going forward, the time to act is now if not yesterday.

The crux of the legacy core administration system problem

In a world of instant gratification, results have to be immediate. Whether you’re a business owner or a politician, your shareholders and constituents have one pivotal trait in common: a lack of patience. 

What is the point of devoting millions of dollars and thousands of man-hours to a vast improvement initiative – such as the technical and technological challenge of replacing a health insurer’s legacy core administration system with a modern platform built on data and analytics and with the customer experience at its center – when you won’t be in the job by the time it is complete?

Furthermore, the wondrous speed of technological innovation in the modern era brings with it another huge concern for insurers. When it comes to overhauling a system as critical and fundamental as the core administration system, the fear is that by the time the project is complete, the new system will no longer be at the forefront of technology, and will instead require an update just a few more years down the line.

How the problem has ballooned

Past executives in the technology organizations of health insurance companies have reflected on these issues, and how they were forced to work around antiquated technology as a result. Due to their organizations’ increasing reliance on legacy core administration systems, customer experience took a backseat, given the technology simply didn’t have the ability to support the functionality customers were looking for.

Only marginal improvements were possible, as code introduced into production could only be implemented around the existing technology architecture. Distinct parts of the system – for example, proposals and claims – were divided in such a way that data was not able to be transferred between the two functional areas efficiently due to their siloed nature. 

All the while costs ballooned as improvement projects seeking a quick fix still needed to be staffed by traditional multi-layered role structures – teams consisting of business analysts, project managers, and quality assurance testers, in addition to the developers themselves.

Agile transformation may have been the goal, but jarringly slow progress was the result, despite the best efforts of talented individuals with years of prior experience in the industry. As surrounding technology has sprung up – health insurance marketplaces, online brokers, and more – the difficulties of keeping pace with outdated technology have become increasingly apparent, and the maintenance of the latter is exceedingly costly.

Yet, integration was always too daunting and seemed to require far too much complexity than was palatable by practical technology leaders in the short term. Thus, the problem continued to be pushed down the road.

Now is the time to solve it

However, the legacy core administration system need not plague the health insurance industry any longer. The technology that IT executives in health insurance have wished for all these years is finally here. 

Even better, they don’t have to spend excessive amounts of money and face lengthy timelines overhauling their technology stacks. Today, transformation is possible in a fraction of the time and cost, especially as you don’t necessarily have to implement a brand-new end-to-end system. 

Implementation can be executed in a modular, gradual, and flexible manner, by integrating the functionality of new technology with your existing systems piece by piece. Practicality remains key to the undertaking – it is significantly easier to convince business owners and key stakeholders of your technology strategy when you aren’t asking them to commit to significant cost outlays and lengthy timelines upfront.

Advantages of replacing your legacy core system

Having been hamstrung by legacy core systems, health insurers have been limited in their ability to improve on long-standing internal business processes. Current technology has the potential to swiftly remove these impediments and completely transform insurers’ process flows and product journeys. 

The rise of low-code/no-code software tools like CoverGo has removed the necessity for expensive improvement projects with overly complex staffing structures as alluded to above, because business users can create products at speed without the involvement of developers or IT. As API design has progressed, products can be quickly connected to the front end, empowering seamless omni-channel digital distribution. 

In the insurance context, this means health insurers can easily sell products on their own website or on insurance marketplaces like Policybazaar, supercharging their go-to-market strategy. Furthermore, open APIs are also able to serve other key stakeholders in the insurance ecosystem by enabling customized agent and broker portals to be set up with ease, empowering the former to sell more policies and the latter to efficiently manage existing policies and claims.

Get in touch with us today

If you’re a health insurer looking to break out from the shackles of your existing legacy core administration system, look no further. CoverGo is the first fully configurable, modular, no-code insurance platform for rapid product launch and go-to-market, omni-channel distribution, and intelligent policy management. Powered by a suite of more than 500 open insurance APIs, our platform enables out-of-the-box integration and the ability to automate all of your insurance processes.

Explore how you can partner with us to unlock massive possibilities in your business. Get in touch with our expert team today to learn how you can take your health insurance products into the future.

FAQs

Why is updating the core administration system crucial for insurance companies?

Updating the core administration system is vital for insurers to stay competitive, meet customer expectations, and adapt to the changing market landscape. Legacy systems hinder innovation and impede customer experience improvements.

How can insurers address the challenges posed by legacy systems without significant cost outlays?

Insurers can adopt modular and flexible technology solutions that allow for gradual integration of new functionalities with existing systems. This approach enables transformation in a fraction of the time and cost compared to complete overhauls.

What are the advantages of replacing legacy core systems with modern technology?

Replacing legacy core systems empowers insurers to improve internal processes, enhance product journeys, and enable seamless omni-channel digital distribution. New tools like low-code/no-code software and advanced APIs streamline processes and drive go-to-market strategies.

7 Trends in insurance claims management 2023

Posted on May 15, 2023 by - Claims Management

Insurance claims management is a critical aspect of the insurance industry that plays a vital role in ensuring timely and efficient settlements for policyholders. As technology continues to evolve, so does the landscape of claims management. In this article, we will delve into the latest trends shaping the field and their potential impact on improving customer experiences and streamlining operations.

1. Automation and Artificial Intelligence (AI)

Automation and AI technologies have become indispensable tools in insurance claims management. By leveraging these technologies, insurers can streamline workflows, reduce manual tasks, and improve accuracy. AI-powered chatbots and virtual assistants can provide real-time customer support, while automated claims processing systems can handle repetitive tasks, such as data entry and document processing. Additionally, AI algorithms can help detect fraudulent claims, enabling insurers to mitigate risks effectively.

2. Advanced Data Analytics and Predictive Modeling

With the abundance of data available, insurers are increasingly turning to advanced data analytics and predictive modeling to enhance claims management. By analyzing historical data, insurers can identify patterns, detect anomalies, and make more accurate predictions about claim outcomes. Predictive modeling allows insurers to allocate resources more effectively, identify high-risk claims, and expedite settlements, resulting in improved customer satisfaction and reduced costs.

3. Mobile Claims Processing

In the age of smartphones and mobile apps, insurers are embracing mobile claims processing to offer convenience and efficiency to policyholders. Mobile apps enable customers to file claims, submit documents, track claim statuses, and communicate with insurers on the go. This shift towards mobile claims processing enhances the customer experience, reduces paperwork, and expedites claims settlement, ultimately boosting customer satisfaction.

4. Digital Documentation and Imaging

The transition from paper-based documentation to digital records and imaging is gaining traction in the insurance industry. Document management systems and optical character recognition (OCR) technology enable insurers to digitize and process claim-related documents seamlessly. This not only reduces the physical storage burden but also improves accessibility, enables faster information retrieval, and enhances data security.

5. Focus on Customer Experience Enhancement

Insurance companies are recognizing the importance of providing an exceptional customer experience throughout the claims management process. This involves personalized communication, proactive updates, and self-service options. By embracing digital channels and intuitive user interfaces, insurers can empower policyholders to track claim progress, submit documentation, and receive real-time updates, leading to increased satisfaction and loyalty.

6. Collaboration and Integration

Insurance claims management often involves multiple parties, including policyholders, adjusters, service providers, and third-party administrators. To optimize efficiency and communication, insurers are fostering collaboration and integration with these stakeholders. Seamless data exchange, integrated systems, and standardized processes enable faster information sharing, reduce errors, and improve transparency among all parties involved.

7. Embracing Emerging Technologies

Emerging technologies, such as telematics, the Internet of Things (IoT), and blockchain, are finding their way into insurance claims management. Telematics devices and IoT sensors provide insurers with real-time data related to accidents, driving behavior, or property conditions, facilitating faster and more accurate claim assessments. Additionally, blockchain technology offers transparent and secure record-keeping, enabling efficient claim settlement, reducing fraud, and improving trust between insurers and policyholders.

Conclusion

The insurance industry is undergoing significant transformation, and insurance claims management is at the forefront of this evolution. Automation, AI, advanced data analytics, and mobile technologies are revolutionizing claims processing, enhancing efficiency, and delivering superior customer experiences. By embracing these latest trends, insurers can optimize operations, reduce costs, and build stronger relationships with their policyholders. As technology continues to advance, it is crucial for insurers to stay agile, adapt to change, and embrace innovation to remain competitive in the evolving landscape of insurance claims management.

Why personalization is critical for growing health insurers

Posted on May 11, 2023 by - Health

The insurance landscape is ever-evolving. 

In the changing landscape, traditional insurance plans are no longer enough. Such plans tend to be rigid in their approach, with little to no room to focus on personalizing the policy to customers’ unique needs. Thanks to the rise of digital platforms, there has never been a better time than the present for insurers to focus on catering to the needs of their customers. 

Health insurers, in particular, stand to benefit from scaling up their personalization efforts. 

Here’s a look at the untapped potential of implementing an effective personalization program for such insurers. 

What personalization means for health insurers?

Anything pertaining to health automatically demands hyper-personalization, as the needs of every individual are unique. In the case of health insurers, every policy sold ensures that each beneficiary receives the treatment they require. Paying attention to personalizing the policy offered allows customers to pick something that aligns with their health needs and covers the latest medical treatment offered in the field. 

For example, when selling an insurance policy, health insurers can use a recommendation engine that suggests the ideal policy based on individual patient data and trends based on patients with similar symptoms. Insurers can also leverage AI to suggest the right insurance plan based on the appropriate treatment plan for such patients. 

Why health insurers cannot neglect personalization?

The biggest reason to personalize insurance policies for each customer is that everyone expects it in the digital age. Customers expect health insurance policies tailored to their specific needs in the era driven by tracking analytics. The health needs of every insured person are different, and not everyone may respond to the same treatment even when displaying similar symptoms. That’s why customers expect the coverage offered by insurers to account for all scenarios and match up with what science offers. 

Generic health insurance policies are a passe. Instead, adapting bundling can help insurers create customized offerings to impress their customers. So insurers can give the customers a choice to pick the amount of coverage they want, select add-ons they need, and opt out of coverage they don’t need. 

For instance, there are several highly specialized treatment protocols, such as targeted therapy, biological agents, and regenerative medicine, that physicians rely on to cure chronic medical conditions like Chronic myeloid leukemia and hepatitis C that do not respond to traditional treatment plans. A health insurance policy can be well-rounded and comprehensive only when flexible and capable of addressing customer demands. 

Moreover, extending personalized offerings means insurers can drive more leads, boost customer retention (especially those with expiring policies), and cross-sell new products to get an edge over their competitors. This can help enhance customer relationships, boost loyalty, and increase retention.

It is also pertinent to note that personalization directly impacts the bottom line of insurers — in fact, according to the Boston Consulting Group, insurance firms that have embraced customized solutions have recorded revenue growth of 6 to 10 percent.

How to implement personalization in health insurance?

Thanks to the meteoric rise of the Internet of Things (IoT) and other digital technologies, health insurers now have access to previously inaccessible insights. Leveraging the right digital technology can help insurers collect more than generic demographic information such as age, sex, and education level. 

In other words, only going digital can help insurers to think beyond the one-size-fits-all mode and provide personalized policy offerings at par with the developments in the medical field and the needs of the client in an easy and scalable manner. While there is no one personalization strategy all health insurers can follow, here are a few ways to implement it.

  • Insurance firms can store behavioral data and employ machine learning technology to target personalized products to the customer. For example, someone looks up ‘insurance policies for breast cancer treatment’ online. Insurers can track the user’s online activity to recognize that this person is looking for suitable health insurance plans that provide coverage for breast cancer treatments. They can accordingly pitch the relevant policies they offer.

  • In the digital age, a wealth of information is available from various wearables and smart devices that provide deeper insights into a person’s lifestyle. Health insurers can incorporate supplemental data such as daily workouts, sleep cycles, and food intake to customize the insurance premium. They can also offer personalized health recommendations through AI chatbots and incentivize the customers to achieve fitness goals to earn reward points which can be redeemed while paying the premium.

  • Insurers can also review historical medical information and employ predictive analytics to forecast whether a client is more likely to develop a chronic illness and offer a personalized policy. They can also use the data to incentivize their customers to adopt a healthy lifestyle.

  • Bundling policies is another way to personalize the offering. For example, suppose a young woman in her mid-20s is looking to purchase individual health insurance that doesn’t provide coverage for maternity and childbirth. In that case, insurers can consider bundling the two policies into a single package for the desired coverage. 

Even the marketing of the policies can be personalized through digital distribution, which refers to deployment and sales through digital modes. Using direct distribution channels saves insurers from paying commissions to agents or intermediaries. For example, health insurers can boost engagement with the audience through their social media channels, prompt them to download their app, and position the relevant health insurance products before them through the app via chatbots. They can also manage onboarding, and policy management and settle claims through the app.

In fact, platforms such as CoverGo can assist insurers in delivering a digital insurance experience, provide more personalized offerings and innovate without overhauling the entire system. Attempting to innovate from scratch is both expensive and time-consuming. 

With CoverGo, health insurers can follow an embedded insurance strategy to deploy products on third-party marketplaces, manage claim submissions, ensure all communication channels can be managed within a single interface, and engage directly with clients. Insurers can also rely on 500+ APIs of CoverGo that have been specially designed for innovating without writing a single line of code. 

Final words

A forward-thinking insurer stands to benefit immensely from embracing personalization. Since there are various ways in which personalization can be achieved, it is essential to follow a scalable strategy that can fulfill customer demands. 

Need a reliable platform to develop personalized insurance software for your firm? Request a demo with CoverGo team to learn how most prominent health insurance players are using personalized offerings to transform their business without completely changing the system within which they operate.

Transitioning from legacy systems to modern insurtech platforms

Posted on May 6, 2023 by - Insurtech Core Systems

In the rapidly evolving landscape of the insurance industry, adapting to change is not just an option – it’s a necessity. With the advent of technology and the demand for enhanced customer experiences, insurers are reconsidering their traditional in-house core systems in favor of more agile and efficient Software as a Service (SaaS) platforms. This paradigm shift marks a significant departure from conventional practices and holds the promise of improved operational efficiency, flexibility, and customer satisfaction.

Is sticking to legacy systems still viable?

Traditional insurers have long relied on in-house core systems to manage their operations. While these systems were effective in their time, they often lack the agility required to keep up with the demands of modern business environments. Legacy systems can be complex, difficult to update, and costly to maintain.

As the industry witnesses a surge in data-driven decision-making, personalized customer experiences, and seamless digital interactions, the limitations of these systems become glaringly evident.

Many insurers are inadvertently turning a blind eye to the clear signs that their legacy systems are impeding their progress. These systems, once robust, are now proving inflexible and slow to adapt to the demands of a rapidly evolving industry. The signs are evident in the disjointed customer experiences, prolonged product development cycles, and the struggle to keep up with data-driven insights that competitors are leveraging to their advantage.

The costs of maintaining and patching these systems are draining valuable resources that could be invested in innovation. Ignoring these signs not only stifles growth but also risks alienating customers who expect seamless digital interactions. The urgency to break free from these outdated constraints and embrace modern technologies has never been greater, as the insurance landscape demands agility, efficiency, and customer-centricity to thrive in the digital age. 

Enter SaaS Platforms

The rise of insurtech platforms has redefined the insurance industry by merging cutting-edge technology with innovative business models. These platforms leverage advanced technologies like AI, data analytics, and IoT to enhance operational efficiency, improve customer experiences, and introduce agile, data-driven solutions.

Focusing on customer-centricity, cost-efficiency, and global accessibility, insurtech platforms are transforming traditional insurance practices, fostering collaboration, and revolutionizing risk assessment, all while propelling the industry toward a more digitally-driven and customer-oriented future.

These platforms offer a range of benefits that are hard to ignore:

Agility and Flexibility: SaaS platforms are designed to be adaptable to changing business needs. Insurers can easily scale their operations up or down, introduce new features, and integrate with other technologies without the constraints of a legacy system.

Cost-Efficiency: Building and maintaining in-house core systems can be a significant financial burden. SaaS platforms operate on a subscription-based model, eliminating the need for upfront infrastructure investments and reducing ongoing maintenance costs.

Faster Speed-to-Market: With SaaS solutions, insurers can accelerate their time-to-market for new products and services. The streamlined deployment process allows for quicker implementation, enabling companies to respond swiftly to market trends and customer demands.

Enhanced Customer Experiences: SaaS platforms often come with built-in tools for data analytics and customer relationship management. This empowers insurers to personalize their offerings, provide better customer support, and ultimately improve customer satisfaction.

Security and Compliance: Reputed SaaS providers invest heavily in robust security measures and compliance standards. This ensures that sensitive customer data is protected and that insurers can meet regulatory requirements without the need for constant updates to their systems.

Focus on Core Competencies: By outsourcing core system management to SaaS providers, insurers can divert their internal resources towards innovation, customer-centric initiatives, and strategic growth rather than routine system maintenance.

Challenges and Considerations

The transition from legacy software to modern insurtech platforms presents insurance companies with several significant challenges. Data migration, a complex and often risky process, requires careful planning to avoid loss or corruption of crucial information. Change management becomes imperative as employees accustomed to traditional systems might face difficulties adapting to new technologies and workflows.

Moreover, navigating the complex regulatory landscape while ensuring compliance during the transition adds an additional layer of complexity. Despite these hurdles, successfully overcoming these challenges can lead to streamlined operations, enhanced customer experiences, and a competitive edge in the ever-evolving insurance landscape.

Here are some main challenges that insurers face when moving from legacy to modern systems:

Data Migration: Migrating data from legacy systems to SaaS platforms requires careful planning to ensure a smooth transfer without data loss or disruptions.

Change Management: Employees accustomed to traditional systems might resist the transition. Proper change management strategies are necessary to ensure a smooth adoption process.

Integration Complexity: Integrating the SaaS platform with existing technologies and third-party systems requires a thorough consideration of compatibility and interoperability.

Vendor Selection: Choosing the right SaaS provider is crucial. Factors like reputation, security measures, scalability, and support must be carefully evaluated.

Making the move

In an industry where adaptation is key to survival, insurers are embracing the benefits of SaaS platforms to revolutionize their operations. The transition from in-house core systems to SaaS offers insurers the tools they need to navigate the demands of the modern marketplace, enhance customer experiences, and drive innovation. While challenges exist, the potential rewards far outweigh the hurdles, making SaaS platforms an attractive choice for insurers seeking growth, efficiency, and agility in an ever-changing landscape.

If you’re an insurer that’s mulling the move from your legacy system to something more modern, contact our experts at CoverGo, and we’ll show you how our platform helps insurers across the globe reach their digital potential.

What is insurance management software?

Posted on April 4, 2023 by - Insurtech

Insurance management software refers to a type of computer program or platform designed to help insurance companies manage their policies, claims, and other related operations. The software can be used to streamline various processes involved in insurance, such as underwriting, policy management, claims processing, customer support, billing, and reporting.

Insurance management software can be customized to meet the specific needs of different types of insurance companies, including health insurance, life insurance, property and casualty insurance, and more. Some common features of insurance management software may include:

Product Builders

Insurance management software can provide product builders that make insurance product building faster and more scalable. Product builders are tools within the software that allows insurance companies to easily create and modify insurance products without requiring extensive programming or technical knowledge.

With product builders, insurance companies can quickly create new policies and make changes to existing policies, such as adjusting coverage levels or adding new features. This can help insurance companies stay competitive and respond quickly to changing market demands. In addition, product builders can also help insurance companies reduce costs and streamline their operations by automating the product-building process.

Insurance management software can provide a variety of product builders to meet the needs of different types of insurance products. For example, a health insurance product builder may allow insurance companies to select different coverage levels for different medical procedures, while a property and casualty insurance product builder may allow insurance companies to customize coverage options based on the type of property being insured.

By providing product builders, insurance management software can help insurance companies stay ahead of the competition, improve customer satisfaction, and increase revenue. With the ability to quickly and easily build new insurance products, insurance companies can offer more diverse and customized insurance options to their customers, which can lead to increased sales and customer loyalty. Additionally, the scalability of product builders can help insurance companies expand their offerings and enter new markets more efficiently, further increasing their revenue potential.

Policy administration

Insurance management software can provide modern policy administration systems that can help insurance companies streamline their policy management processes, improve operational efficiency, and provide better customer service.

Modern policy administration systems within insurance management software are designed to replace legacy systems, which can be slow, outdated, and difficult to maintain. These modern systems are built using the latest technology and can provide insurance companies with a range of benefits.

One of the main benefits of modern policy administration systems is their flexibility. They can be easily customized to meet the specific needs of different types of insurance products, including health insurance, life insurance, property and casualty insurance, and more. This means that insurance companies can tailor their policy administration systems to their exact requirements, which can help them provide more efficient and effective service to their customers.

Another benefit of modern policy administration systems is their automation capabilities. They can automate many manual processes involved in policy administration, such as data entry, underwriting, and claims processing. This can help insurance companies reduce costs, improve accuracy, and free up staff time to focus on more complex tasks that require human intervention.

Furthermore, modern policy administration systems can also provide real-time data and analytics, which can help insurance companies make informed decisions about their policies and operations. This data can be used to identify trends, spot potential risks, and improve policyholder satisfaction by identifying areas where processes can be streamlined or improved.

Claims management

One way that insurance management software can help with claims management processing is by providing digital claims submission tools. These tools allow policyholders to submit claims online, either through a web portal or a mobile app, without having to visit an office or mail in paper forms. This can save time and reduce the likelihood of errors, as the system can automatically validate and verify claim information.

Another way that insurance management software can help with claims management processing is by providing automated claims processing. With the help of artificial intelligence and machine learning, insurance management software can analyze and process claims quickly, flag potential fraud, and verify claims eligibility.

Insurance management software can provide real-time updates on the status of claims, including notifications of when a claim has been received, when it is being reviewed, and when a payout has been made. This can provide policyholders with transparency and peace of mind throughout the claims process.

Billing and payment

Insurance management software can help with billing and payment by providing online billing and payment portals. These portals allow policyholders to view their bills and make payments online, either through a web portal or a mobile app, without having to visit an office or mail in paper checks. This can save time and reduce the likelihood of errors, as the system can automatically verify payment information and ensure that payments are applied correctly.

Another way that insurance management software can help with billing and payment is by providing automated billing and payment processing. With the help of automation tools, insurance management software can generate bills, process payments, and update account information automatically, reducing the need for manual data entry and reducing the likelihood of errors.

In addition, insurance management software can provide real-time updates on billing and payment activity, including notifications of when a bill has been generated, when a payment has been received, and when a payment is due. This can give policyholders transparency and help them manage their finances more effectively.

Digital Distribution

Insurance management software can help insurers with omni-channel digital distribution by providing tools and features that allow them to distribute their insurance products through multiple channels, such as online portals, mobile apps, and social media platforms.

For example, insurance management software can provide a web portal where customers can view and purchase insurance products online. The portal can be customized to include features such as product comparison tools, personalized recommendations, and online chat support, which can help customers make informed decisions about their insurance needs.

Similarly, insurance management software can provide a mobile app that allows customers to purchase and manage their insurance policies on their mobile devices. The app can include features such as push notifications for policy renewals, digital ID card storage, and easy access to claims submission tools.

In addition, insurance management software can enable insurers to distribute their products through social media platforms, such as Facebook and Twitter. This can be done by integrating the insurance products with social media advertising and marketing campaigns, allowing insurers to target specific customer segments and drive sales through social media.

Embedded Insurance

Insurance management software can help insurers spread their products to digital channels using embedded insurance. Embedded insurance refers to the integration of insurance products into the products or services of other businesses, such as e-commerce platforms, ride-sharing apps, and home security systems. This allows insurers to reach new customers through existing distribution channels, without the need to create their own distribution channels.

Insurance management software can help insurers to develop and manage embedded insurance products by providing the necessary tools and features to integrate insurance products with third-party products and services. For example, insurance management software can provide APIs (application programming interfaces) that allow insurers to integrate their insurance products with the products or services of other businesses.

One example of embedded insurance is ride-sharing insurance, which is offered by insurance companies to drivers who use ride-sharing apps such as Uber and Lyft. With the help of insurance management software, insurers can integrate their ride-sharing insurance products with the ride-sharing apps, allowing drivers to purchase and manage their insurance policies directly through the app.

Another example of embedded insurance is travel insurance, which is often offered by airlines and travel booking websites. With the help of insurance management software, insurers can integrate their travel insurance products with these websites, allowing customers to purchase travel insurance as part of their flight or travel booking.

APIs

Insurance management software can help with APIs and integrations with third-party software and services, as well as its ability to integrate with legacy systems that already exist inside insurers.

APIs, or application programming interfaces, allow different software systems to communicate with each other, enabling the exchange of data and functionality. Insurance management software can provide APIs that allow insurers to integrate their insurance products with third-party software and services, such as e-commerce platforms, mobile apps, and social media platforms. This allows insurers to expand their distribution channels and reach new customers through existing digital channels.

In addition, insurance management software can also help with integrations with legacy systems that already exist inside insurers. Many insurers have older, legacy systems that were built using older technology and are difficult to integrate with newer systems. Insurance management software can provide integration tools that allow legacy systems to communicate with newer systems, enabling insurers to streamline their processes and improve operational efficiency.

For example, an insurance company may have a legacy claims processing system that is not integrated with its newer policy administration system. Insurance management software can provide integration tools that allow the two systems to communicate with each other, enabling the claims processing system to access policy data and update policy information in real-time.

Is it time to change or upgrade your insurance management software?

In today’s ever-digitalizing world, it is crucial for insurers to upgrade their internal systems and adopt insurance management software. Doing so enables insurers to keep pace with evolving customer expectations, streamline their operations, and expand their distribution channels to reach new customers.

Insurance management software offers a wide range of tools and features that can help insurers improve their product development, policy administration, claims management, billing and payment, analytics, and distribution capabilities. It can also integrate with legacy systems, providing a seamless transition to modern systems.

By adopting insurance management software, insurers can increase their operational efficiency, reduce costs, and offer better customer service. They can also leverage advanced analytics to gain insights into customer behavior and market trends and use that data to develop more personalized insurance products and services.

Are you ready to adopt insurance management software for your insurance transformation needs? Talk to one of our experts today and learn how CoverGo helps insurers save money, act faster, and grow larger.

Why policy admin systems need an upgrade

Posted on March 21, 2023 by - Policy Administration

A Policy Administration System (PAS) is a crucial component of insurance companies that manages the entire lifecycle of policies, from quoting and underwriting to billing and claims processing. As the insurance industry is constantly evolving, it is essential for companies to keep their PAS up-to-date to stay competitive and meet the changing needs of their customers. Here are some reasons why an upgrade is necessary:

Don’t Get Held Back by Legacy Systems

Many insurance companies are still using legacy PAS, which are outdated and lack the flexibility and agility needed to meet modern business requirements. These systems are usually inflexible and do not allow for customization or integration with new technologies. An upgrade will allow companies to take advantage of newer technologies, improve efficiency, and reduce costs.

Replacing these legacy systems with modern versions can bring many benefits, including:

  1. Improved Efficiency: Modern policy admin systems are designed to streamline processes and automate tasks, allowing for more efficient and faster operations. This can lead to a reduction in administrative tasks and overhead, resulting in cost savings for insurance companies.

  2. Enhanced Customer Experience: Modern policy admin systems can provide a more personalized and engaging experience for customers. Features such as self-service portals, real-time updates, and mobile apps can improve customer satisfaction and retention.

  3. Better Data Management: Legacy systems often have data silos, making it challenging to access and analyze data. Modern policy admin systems can unify data sources, providing insurers with more accurate and timely information. This can lead to better decision-making, improved risk assessment, and enhanced underwriting practices.

  4. Increased Flexibility: Modern policy admin systems are designed to adapt to changing market conditions and customer needs. They can support new products and services, including emerging risks such as cyber and climate-related events.

  5. Improved Compliance: With ever-changing regulations, it can be challenging for insurers to stay compliant with various rules and requirements. Modern policy admin systems can automate compliance processes, reducing the risk of errors and ensuring adherence to regulations.

Improve Your Customer Experience

Customers expect a seamless experience, and an outdated PAS can hinder this. A modern PAS can help streamline processes and provide a better customer experience, which can lead to increased customer satisfaction, retention, and revenue.

In the highly competitive insurance market, providing excellent customer experience has become a key differentiator. With customers expecting seamless and personalized experiences across all touchpoints, insurers need to adapt to new technologies and upgrade their policy admin systems to stay ahead of the competition.

Legacy policy admin systems, which are outdated and inefficient, can be a significant barrier to insurers looking to provide an excellent customer experience. These systems are often slow, difficult to use, and lack the necessary features to meet the needs of today’s insurance market. Upgrading policy admin systems can help insurers overcome these challenges and provide their customers with an exceptional experience.

One of the significant benefits of upgrading policy admin systems is the ability to offer customers self-service capabilities. Modern policy admin systems can provide customers with online portals where they can access their policy information, make changes to their policy, and file claims. This provides customers with greater control and convenience, reduces the need for them to interact with the insurer directly, and frees up valuable resources for insurers.

Another way upgrading policy admin systems can help insurers improve customer experience is by providing faster response times. Legacy policy admin systems can be slow and inefficient, resulting in longer wait times for customers seeking assistance. Upgrading to a modern system can provide faster response times and a more streamlined customer service experience.

Modern policy admin systems can also offer personalized communications. Insurers can use the data collected by these systems to create customized communications with their customers. This can include targeted marketing campaigns, tailored policy information, and proactive notifications about policy changes or updates. This approach helps to build trust and loyalty with customers and enhances their overall experience with the insurer.

Additionally, upgrading policy admin systems provides customers with real-time information about their policies, claims, and other related data. This provides customers with greater transparency and visibility into their coverage, which can help to build trust and loyalty.

Modern policy admin systems can be integrated with mobile apps, which are becoming increasingly popular among customers. Customers prefer to interact with their insurers via mobile apps, and modern policy admin systems can provide insurers with the tools to develop mobile apps that offer customers a convenient and user-friendly way to access their policy information and file claims.

Ultimately, upgrading policy admin systems can significantly improve the customer experience by providing self-service capabilities, faster response times, personalized communications, access to real-time information, and mobile app integration. By doing so, insurers can improve customer satisfaction, reduce churn, and build long-term customer loyalty. As the insurance industry continues to evolve, upgrading policy admin systems will become increasingly critical to stay ahead of the competition and provide customers with the best possible experience.

Toe the Compliance Line

In the insurance industry, compliance with regulatory requirements is critical. Failing to comply with regulations can result in severe consequences, including hefty fines, legal liabilities, and reputational damage. Upgrading policy admin systems can help insurers stay compliant with regulators by providing the necessary tools to manage compliance effectively.

Regulatory requirements in the insurance industry are complex and constantly evolving. Insurers must keep up with changes in regulations and ensure that their policies, procedures, and practices are in line with regulatory requirements. This can be a challenging task, especially for insurers with outdated policy admin systems. Upgrading policy admin systems can provide insurers with the necessary tools to manage compliance effectively and stay ahead of regulatory changes.

One of the significant benefits of upgrading policy admin systems is the ability to automate compliance-related tasks. Modern policy admin systems can automate regulatory compliance tasks, such as data tracking, reporting, and audit management. This reduces the risk of human error and ensures that compliance tasks are completed in a timely and accurate manner.

Upgraded policy admin systems can also offer improved data security and privacy features. Regulatory bodies, such as the General Data Protection Regulation (GDPR), require insurers to protect their customers’ data adequately. Modern policy admin systems can provide insurers with enhanced security features, such as encryption, access controls, and monitoring capabilities, to ensure that customer data is protected.

Moreover, upgraded policy admin systems can help insurers manage regulatory changes effectively. Regulatory changes can be challenging to keep up with, especially if insurers have outdated policy admin systems. Modern policy admin systems can provide insurers with the necessary tools to stay up-to-date with regulatory changes and ensure that their policies, procedures, and practices are in line with regulatory requirements.

In addition, upgraded policy admin systems can help insurers manage their compliance-related risks effectively. Insurers need to identify, assess, and manage compliance-related risks to ensure that they are operating in compliance with regulatory requirements. Modern policy admin systems can provide insurers with risk management tools, such as risk assessment and mitigation, to help them manage their compliance-related risks.

Finally, upgraded policy admin systems can help insurers maintain accurate and up-to-date records, which is critical for compliance purposes. Regulators require insurers to maintain accurate records of their policies, procedures, and practices. Modern policy admin systems can provide insurers with the necessary tools to maintain accurate records and ensure that they are easily accessible and up-to-date.

An upgraded PAS can help insurers stay compliant with regulatory requirements by providing the necessary tools to manage compliance effectively. Upgraded policy admin systems can automate compliance-related tasks, improve data security and privacy features, help insurers manage regulatory changes, manage compliance-related risks, and maintain accurate and up-to-date records. As regulatory requirements continue to evolve, upgrading policy admin systems will become increasingly critical for insurers to stay compliant and avoid the potential consequences of non-compliance.

Drive Profitability with Better Data Management

In today’s rapidly evolving insurance industry, policy administration systems have become a key component of insurers’ success. These systems can significantly impact an insurance company’s profitability by improving the accuracy, efficiency, and speed of policy processing, while also allowing insurers to better manage and leverage their data.

With the increasing amount of data generated in the industry, policy administration systems are becoming increasingly important for insurers. These systems are designed to manage the full lifecycle of policies, from underwriting to claims management, while also enabling insurers to collect and analyze data related to these processes. This data can be used to drive profitability for insurers by identifying areas for cost savings, improving customer satisfaction, and creating new revenue streams.

One of the primary benefits of modern policy administration systems is their ability to improve the accuracy and efficiency of policy processing. These systems use automated workflows and rules-based processing to minimize errors and ensure that policies are processed quickly and accurately. This, in turn, reduces the time and resources required for manual processing, enabling insurers to operate more efficiently and reduce costs.

Policy administration systems can also help insurers manage their data more effectively. By collecting and storing data on policies, claims, and other insurance-related activities, these systems can provide insurers with insights into their operations, customers, and markets. This data can be analyzed to identify trends, patterns, and areas for improvement, enabling insurers to make data-driven decisions that drive profitability.

For example, insurers can use data from policy administration systems to identify which policies are the most profitable and adjust the pricing or underwriting guidelines accordingly. They can also use data to identify areas where they are experiencing high claims volumes or fraud and take steps to reduce these risks. Additionally, insurers can use data to identify cross-selling opportunities and upsell additional products to existing customers.

Another key benefit of modern policy administration systems is their ability to improve customer satisfaction. By streamlining policy processing and claims management, these systems can provide a more seamless and efficient experience for customers. They can also provide customers with real-time access to their policy information and claims status, reducing the need for phone calls and emails and improving overall customer satisfaction.

Make Integrations into Opportunities

With the rise of InsurTech companies, insurance companies need to be able to integrate with new technologies quickly and efficiently. An upgraded PAS can provide the flexibility and agility needed to integrate with new technologies and stay competitive.

Policy admin systems are responsible for managing policies from inception to completion, including underwriting, rating, billing, and claims management. However, as the industry continues to evolve, insurers must continually upgrade their policy administration systems to keep up with changing customer needs and technological advancements. Innovative insurers are also looking 

One of the most significant benefits of upgrading a policy administration system is the ease with which it can integrate with other systems and technologies. Modern policy administration systems are built with integration in mind, allowing insurers to seamlessly connect their policy administration system to other critical technologies such as customer relationship management (CRM) systems, billing systems, and claims management systems.

This integration provides insurers with a holistic view of their operations and enables them to streamline processes that were previously siloed. By connecting the policy administration system to other systems, insurers can automatically populate customer data across platforms, reducing the need for manual data entry and reducing errors. Additionally, insurers can leverage data across systems to gain insights into customer behavior, identifying trends that can inform future product development and marketing strategies.

Moreover, upgraded policy administration systems also offer opportunities that legacy systems cannot. For example, modern policy administration systems offer flexible and customizable configuration options that enable insurers to create unique products and services that align with their business needs. This customization allows insurers to differentiate themselves from competitors, providing tailored solutions to their customers and driving customer loyalty.

Furthermore, modern policy administration systems can provide insurers with additional revenue streams through partnerships and collaborations. For example, insurers can integrate their policy administration systems with Insurtech platforms, providing customers with access to new products and services. This integration not only improves the customer experience but also provides an additional source of revenue for the insurer.

Finally, upgraded policy administration systems can also improve compliance and reduce risk. Legacy systems are often unable to keep up with changing regulatory requirements, leading to compliance issues and potential penalties. Modern policy administration systems, on the other hand, are built with compliance in mind, providing insurers with the tools necessary to ensure that their policies and practices align with current regulatory standards.


Are you ready to upgrade?

An upgraded PAS is essential for insurance companies to remain competitive and meet the changing needs of their customers. It can help improve efficiency, reduce costs, provide a better customer experience, ensure compliance, and manage data more efficiently. By upgrading to modern policy administration systems, insurers can streamline their operations, reduce costs, and remain competitive in an industry that is constantly evolving.

If you’re an insurer that’s looking to be more innovative and use digital tools and channels to your advantage, contact CoverGo today and schedule a demo with one of our digital transformation experts to see what the future could look like if you upgraded your policy admin systems and more.

A Policy Administration System (PAS) is a crucial component of insurance companies that manages the entire lifecycle of policies, from quoting and underwriting to billing and claims processing. As the insurance industry is constantly evolving, it is essential for companies to keep their PAS up-to-date to stay competitive and meet the changing needs of their customers. Here are some reasons why an upgrade is necessary:

Don’t Get Held Back by Legacy Systems

Many insurance companies are still using legacy PAS, which are outdated and lack the flexibility and agility needed to meet modern business requirements. These systems are usually inflexible and do not allow for customization or integration with new technologies. An upgrade will allow companies to take advantage of newer technologies, improve efficiency, and reduce costs.

Replacing these legacy systems with modern versions can bring many benefits, including:

  1. Improved Efficiency: Modern policy admin systems are designed to streamline processes and automate tasks, allowing for more efficient and faster operations. This can lead to a reduction in administrative tasks and overhead, resulting in cost savings for insurance companies.

  2. Enhanced Customer Experience: Modern policy admin systems can provide a more personalized and engaging experience for customers. Features such as self-service portals, real-time updates, and mobile apps can improve customer satisfaction and retention.

  3. Better Data Management: Legacy systems often have data silos, making it challenging to access and analyze data. Modern policy admin systems can unify data sources, providing insurers with more accurate and timely information. This can lead to better decision-making, improved risk assessment, and enhanced underwriting practices.

  4. Increased Flexibility: Modern policy admin systems are designed to adapt to changing market conditions and customer needs. They can support new products and services, including emerging risks such as cyber and climate-related events.

  5. Improved Compliance: With ever-changing regulations, it can be challenging for insurers to stay compliant with various rules and requirements. Modern policy admin systems can automate compliance processes, reducing the risk of errors and ensuring adherence to regulations.

Improve Your Customer Experience

Customers expect a seamless experience, and an outdated PAS can hinder this. A modern PAS can help streamline processes and provide a better customer experience, which can lead to increased customer satisfaction, retention, and revenue.

In the highly competitive insurance market, providing excellent customer experience has become a key differentiator. With customers expecting seamless and personalized experiences across all touchpoints, insurers need to adapt to new technologies and upgrade their policy admin systems to stay ahead of the competition.

Legacy policy admin systems, which are outdated and inefficient, can be a significant barrier to insurers looking to provide an excellent customer experience. These systems are often slow, difficult to use, and lack the necessary features to meet the needs of today’s insurance market. Upgrading policy admin systems can help insurers overcome these challenges and provide their customers with an exceptional experience.

One of the significant benefits of upgrading policy admin systems is the ability to offer customers self-service capabilities. Modern policy admin systems can provide customers with online portals where they can access their policy information, make changes to their policy, and file claims. This provides customers with greater control and convenience, reduces the need for them to interact with the insurer directly, and frees up valuable resources for insurers.

Another way upgrading policy admin systems can help insurers improve customer experience is by providing faster response times. Legacy policy admin systems can be slow and inefficient, resulting in longer wait times for customers seeking assistance. Upgrading to a modern system can provide faster response times and a more streamlined customer service experience.

Modern policy admin systems can also offer personalized communications. Insurers can use the data collected by these systems to create customized communications with their customers. This can include targeted marketing campaigns, tailored policy information, and proactive notifications about policy changes or updates. This approach helps to build trust and loyalty with customers and enhances their overall experience with the insurer.

Additionally, upgrading policy admin systems provides customers with real-time information about their policies, claims, and other related data. This provides customers with greater transparency and visibility into their coverage, which can help to build trust and loyalty.

Modern policy admin systems can be integrated with mobile apps, which are becoming increasingly popular among customers. Customers prefer to interact with their insurers via mobile apps, and modern policy admin systems can provide insurers with the tools to develop mobile apps that offer customers a convenient and user-friendly way to access their policy information and file claims.

Ultimately, upgrading policy admin systems can significantly improve the customer experience by providing self-service capabilities, faster response times, personalized communications, access to real-time information, and mobile app integration. By doing so, insurers can improve customer satisfaction, reduce churn, and build long-term customer loyalty. As the insurance industry continues to evolve, upgrading policy admin systems will become increasingly critical to stay ahead of the competition and provide customers with the best possible experience.

Toe the Compliance Line

In the insurance industry, compliance with regulatory requirements is critical. Failing to comply with regulations can result in severe consequences, including hefty fines, legal liabilities, and reputational damage. Upgrading policy admin systems can help insurers stay compliant with regulators by providing the necessary tools to manage compliance effectively.

Regulatory requirements in the insurance industry are complex and constantly evolving. Insurers must keep up with changes in regulations and ensure that their policies, procedures, and practices are in line with regulatory requirements. This can be a challenging task, especially for insurers with outdated policy admin systems. Upgrading policy admin systems can provide insurers with the necessary tools to manage compliance effectively and stay ahead of regulatory changes.

One of the significant benefits of upgrading policy admin systems is the ability to automate compliance-related tasks. Modern policy admin systems can automate regulatory compliance tasks, such as data tracking, reporting, and audit management. This reduces the risk of human error and ensures that compliance tasks are completed in a timely and accurate manner.

Upgraded policy admin systems can also offer improved data security and privacy features. Regulatory bodies, such as the General Data Protection Regulation (GDPR), require insurers to protect their customers’ data adequately. Modern policy admin systems can provide insurers with enhanced security features, such as encryption, access controls, and monitoring capabilities, to ensure that customer data is protected.

Moreover, upgraded policy admin systems can help insurers manage regulatory changes effectively. Regulatory changes can be challenging to keep up with, especially if insurers have outdated policy admin systems. Modern policy admin systems can provide insurers with the necessary tools to stay up-to-date with regulatory changes and ensure that their policies, procedures, and practices are in line with regulatory requirements.

In addition, upgraded policy admin systems can help insurers manage their compliance-related risks effectively. Insurers need to identify, assess, and manage compliance-related risks to ensure that they are operating in compliance with regulatory requirements. Modern policy admin systems can provide insurers with risk management tools, such as risk assessment and mitigation, to help them manage their compliance-related risks.

Finally, upgraded policy admin systems can help insurers maintain accurate and up-to-date records, which is critical for compliance purposes. Regulators require insurers to maintain accurate records of their policies, procedures, and practices. Modern policy admin systems can provide insurers with the necessary tools to maintain accurate records and ensure that they are easily accessible and up-to-date.

An upgraded PAS can help insurers stay compliant with regulatory requirements by providing the necessary tools to manage compliance effectively. Upgraded policy admin systems can automate compliance-related tasks, improve data security and privacy features, help insurers manage regulatory changes, manage compliance-related risks, and maintain accurate and up-to-date records. As regulatory requirements continue to evolve, upgrading policy admin systems will become increasingly critical for insurers to stay compliant and avoid the potential consequences of non-compliance.

Drive Profitability with Better Data Management

In today’s rapidly evolving insurance industry, policy administration systems have become a key component of insurers’ success. These systems can significantly impact an insurance company’s profitability by improving the accuracy, efficiency, and speed of policy processing, while also allowing insurers to better manage and leverage their data.

With the increasing amount of data generated in the industry, policy administration systems are becoming increasingly important for insurers. These systems are designed to manage the full lifecycle of policies, from underwriting to claims management, while also enabling insurers to collect and analyze data related to these processes. This data can be used to drive profitability for insurers by identifying areas for cost savings, improving customer satisfaction, and creating new revenue streams.

One of the primary benefits of modern policy administration systems is their ability to improve the accuracy and efficiency of policy processing. These systems use automated workflows and rules-based processing to minimize errors and ensure that policies are processed quickly and accurately. This, in turn, reduces the time and resources required for manual processing, enabling insurers to operate more efficiently and reduce costs.

Policy administration systems can also help insurers manage their data more effectively. By collecting and storing data on policies, claims, and other insurance-related activities, these systems can provide insurers with insights into their operations, customers, and markets. This data can be analyzed to identify trends, patterns, and areas for improvement, enabling insurers to make data-driven decisions that drive profitability.

For example, insurers can use data from policy administration systems to identify which policies are the most profitable and adjust the pricing or underwriting guidelines accordingly. They can also use data to identify areas where they are experiencing high claims volumes or fraud and take steps to reduce these risks. Additionally, insurers can use data to identify cross-selling opportunities and upsell additional products to existing customers.

Another key benefit of modern policy administration systems is their ability to improve customer satisfaction. By streamlining policy processing and claims management, these systems can provide a more seamless and efficient experience for customers. They can also provide customers with real-time access to their policy information and claims status, reducing the need for phone calls and emails and improving overall customer satisfaction.

Make Integrations into Opportunities

With the rise of InsurTech companies, insurance companies need to be able to integrate with new technologies quickly and efficiently. An upgraded PAS can provide the flexibility and agility needed to integrate with new technologies and stay competitive.

Policy admin systems are responsible for managing policies from inception to completion, including underwriting, rating, billing, and claims management. However, as the industry continues to evolve, insurers must continually upgrade their policy administration systems to keep up with changing customer needs and technological advancements. Innovative insurers are also looking 

One of the most significant benefits of upgrading a policy administration system is the ease with which it can integrate with other systems and technologies. Modern policy administration systems are built with integration in mind, allowing insurers to seamlessly connect their policy administration system to other critical technologies such as customer relationship management (CRM) systems, billing systems, and claims management systems.

This integration provides insurers with a holistic view of their operations and enables them to streamline processes that were previously siloed. By connecting the policy administration system to other systems, insurers can automatically populate customer data across platforms, reducing the need for manual data entry and reducing errors. Additionally, insurers can leverage data across systems to gain insights into customer behavior, identifying trends that can inform future product development and marketing strategies.

Moreover, upgraded policy administration systems also offer opportunities that legacy systems cannot. For example, modern policy administration systems offer flexible and customizable configuration options that enable insurers to create unique products and services that align with their business needs. This customization allows insurers to differentiate themselves from competitors, providing tailored solutions to their customers and driving customer loyalty.

Furthermore, modern policy administration systems can provide insurers with additional revenue streams through partnerships and collaborations. For example, insurers can integrate their policy administration systems with Insurtech platforms, providing customers with access to new products and services. This integration not only improves the customer experience but also provides an additional source of revenue for the insurer.

Finally, upgraded policy administration systems can also improve compliance and reduce risk. Legacy systems are often unable to keep up with changing regulatory requirements, leading to compliance issues and potential penalties. Modern policy administration systems, on the other hand, are built with compliance in mind, providing insurers with the tools necessary to ensure that their policies and practices align with current regulatory standards.


Are you ready to upgrade?

An upgraded PAS is essential for insurance companies to remain competitive and meet the changing needs of their customers. It can help improve efficiency, reduce costs, provide a better customer experience, ensure compliance, and manage data more efficiently. By upgrading to modern policy administration systems, insurers can streamline their operations, reduce costs, and remain competitive in an industry that is constantly evolving.

If you’re an insurer that’s looking to be more innovative and use digital tools and channels to your advantage, contact CoverGo today and schedule a demo with one of our digital transformation experts to see what the future could look like if you upgraded your policy admin systems and more.

Why health insurers need better product flexibility

Posted on March 9, 2023 by - Health

The healthcare industry is constantly evolving, and as a result, health insurers need to be agile and adaptable in order to keep pace. One of the key areas where they need to improve is product flexibility. This means that insurers need to be able to create and offer a range of different products that meet the specific needs of their customers. In today’s digital age, this is particularly important, and digital platforms play a crucial role in helping insurers to achieve this.

Targeting specific needs

There are several reasons why health insurers need better product flexibility. First and foremost, customers have different needs and preferences when it comes to healthcare. Some may prefer a more comprehensive insurance plan that covers a wide range of medical services, while others may only need coverage for specific conditions or treatments. By offering a range of products, insurers can cater to these varying needs and attract a wider range of customers.

One way health insurers can target specific customer needs is by offering plans that cater to different age groups. For example, younger customers may be interested in plans that provide more coverage for preventative care, such as annual check-ups and vaccinations. Older customers may be interested in plans that provide more coverage for chronic conditions, such as diabetes or heart disease.

Another way health insurers can target specific customer needs is by offering plans that cater to different lifestyles. For example, customers who are more active and participate in sports may be interested in plans that provide coverage for sports-related injuries, while customers who lead a more sedentary lifestyle may be interested in plans that provide coverage for back pain or other conditions related to sitting for extended periods of time.

In addition to age and lifestyle, health insurers can also target specific customer needs by offering plans that cater to specific health conditions. For example, customers with a family history of cancer may be interested in plans that provide coverage for cancer screenings and treatments, while customers with a history of mental health conditions may be interested in plans that provide coverage for counseling or therapy.

Keeping up with health treatments and technology

In addition, the healthcare landscape is constantly changing, and new treatments and technologies are emerging all the time. Insurers need to be able to adapt their products to keep up with these changes and ensure that they are providing their customers with the most up-to-date and effective coverage.

One of the main challenges facing health insurers is the rapid pace of technological innovation in healthcare. New treatments and technologies are constantly being developed, and it can be difficult for insurers to stay abreast of all these changes. This is particularly true for new therapies that may be highly specialized or targeted to specific patient populations.

To keep up with these changes, health insurers must invest in the resources necessary to monitor and evaluate new treatments and technologies. This may involve partnering with medical experts and industry stakeholders to stay informed about new developments and trends in healthcare. It may also involve investing in research and development to assess the effectiveness and cost-effectiveness of new treatments and technologies.

Another important consideration for health insurers is the need to balance the cost of new treatments and technologies with the benefits they provide to patients. New treatments and technologies can be expensive, and insurers must carefully evaluate the potential benefits and risks before deciding to cover them. This may involve negotiating with providers and manufacturers to secure more favorable pricing or developing alternative payment models that incentivize more cost-effective care.

Ultimately, the ability of health insurers to keep up with new medical treatments and technology is critical to ensuring that patients have access to the best possible care. By investing in the necessary resources and expertise, insurers can help to drive innovation in healthcare and improve outcomes for patients.

Better manage costs and risk

Finally, product flexibility can also help insurers to manage their costs and risks. By offering a range of products, insurers can spread their risk across different segments of the market and reduce their exposure to any one particular area. This can help to ensure that they remain financially stable and able to provide their customers with the coverage they need.

One of the primary benefits of product flexibility is the ability to manage costs more effectively. By offering a variety of plan options, insurers can better align the cost of coverage with the needs and budgets of their customers. For example, some customers may be willing to pay a higher premium for a plan with more comprehensive benefits, while others may prefer a lower-cost plan with higher out-of-pocket expenses.

In addition to managing costs, product flexibility can also help insurers to assess risk more accurately. By offering a range of plan options, insurers can attract and retain customers with different health profiles and risk levels. This can help to balance the risk pool and ensure that premiums are set at a level that reflects the underlying risk of the insured population.

Another advantage of product flexibility is that it can help insurers to stay competitive in a rapidly changing market. As new treatments and technologies emerge, insurers may need to adjust their product offerings to stay aligned with the evolving needs of their customers. By offering flexible product options, insurers can respond more quickly to market trends and changes in customer demand.

The role of digital platforms in health insurance

Digital platforms can play a crucial role in helping health insurers to achieve better product flexibility. For example, they can provide insurers with real-time data and insights about customer needs and preferences. This can help insurers to identify trends and patterns in the market and create products that are tailored to specific segments of the population.

One of the primary benefits of product flexibility is the ability to manage costs more effectively. By offering a variety of plan options, insurers can better align the cost of coverage with the needs and budgets of their customers. For example, some customers may be willing to pay a higher premium for a plan with more comprehensive benefits, while others may prefer a lower-cost plan with higher out-of-pocket expenses.

In addition to managing costs, product flexibility can also help insurers to assess risk more accurately. By offering a range of plan options, insurers can attract and retain customers with different health profiles and risk levels. This can help to balance the risk pool and ensure that premiums are set at a level that reflects the underlying risk of the insured population.

Another advantage of product flexibility is that it can help insurers to stay competitive in a rapidly changing market. As new treatments and technologies emerge, insurers may need to adjust their product offerings to stay aligned with the evolving needs of their customers. By offering flexible product options, insurers can respond more quickly to market trends and changes in customer demand.

Insurance platforms streamline product building

Digital platforms can also enable insurers to streamline their product development processes. By using digital tools and technologies, insurers can create and test new products more quickly and efficiently, allowing them to bring products to market faster and cost-effectively.

One of the primary benefits of using digital platforms for product building is the ability to gather and analyze vast amounts of data from multiple sources, including social media, customer feedback, and industry trends. This data can be used to identify emerging customer needs and preferences, allowing insurers to design and launch innovative products that better meet the demands of their target audience.

Digital platforms also allow insurers to create more personalized and customized products by leveraging data analytics and artificial intelligence. These technologies enable insurers to segment their customer base more effectively and tailor products to meet the specific needs of each segment. This approach helps insurers create a more engaging customer experience and build customer loyalty by offering products that better align with customer preferences.

Another advantage of using digital platforms for product building is the ability to automate many of the processes involved in product development and launch. This automation reduces the time and resources required to bring a new product to market, enabling insurers to quickly respond to changing market conditions and stay ahead of the competition.

Increasing customer engagement with digital insurance platforms

In addition, digital platforms can help insurers to improve their customer engagement and satisfaction. By providing customers with digital tools and resources, such as online portals and mobile apps, insurers can enable customers to manage their healthcare more effectively and easily. This can help to build customer loyalty and retention, and ultimately drive growth and profitability for the insurer.

One of the primary benefits of using digital platforms for customer engagement is the ability to provide personalized experiences. These platforms allow insurers to collect and analyze customer data, such as their browsing behavior, purchase history, and demographic information. With this data, insurers can create targeted marketing campaigns and personalized product recommendations that resonate with individual customers, leading to higher engagement and conversion rates.

Digital platforms also enable insurers to offer flexible communication channels, allowing customers to interact with them through their preferred channels, such as email, social media, chatbots, or mobile apps. This flexibility not only meets the customers’ needs for convenience but also increases the likelihood of engagement, as customers are more likely to respond to messages through channels they prefer.

Another advantage of using digital platforms for customer engagement is the ability to provide 24/7 support, ensuring customers get the help they need when they need it. With self-service options such as chatbots and online support forums, customers can easily access the information they need without having to wait for traditional support channels such as phone calls or emails.

Finally, digital platforms provide insurers with a wealth of customer feedback, enabling them to gather insights into customer needs, preferences, and pain points. This feedback can be used to improve products and services, enhancing the overall customer experience and driving customer loyalty.

Is your insurance company ready for digital transformation?

In conclusion, health insurers need better product flexibility in order to remain competitive and meet the evolving needs of their customers. Digital platforms can help insurers to achieve this by providing real-time data and insights, streamlining product development processes, and improving customer engagement and satisfaction. By embracing digital technologies and platforms, insurers can create a more agile and adaptable business model that is better equipped to navigate the changing healthcare landscape.

Should insurers integrate with insurtech platforms?

Posted on March 7, 2023 by - Insurtech

Insurtech refers to various technology-enabled innovations that allow insurance firms to deliver superior and streamlined customer experience. In the current age, it is impossible to imagine the future of the sector without insurtech.

Touted as a key driver of growth and innovation, insurtech is set to reshape how the insurance sector operates. The projected CAGR (Compound Annual Growth Rate) of the global insurtech market is predicted to be a whopping 48% between 2021 and 2028.

So is this the right time for your insurance firm to integrate with an insurtech platform?

The answer is a resounding YES — read through the paragraphs below to discover why we say that.

How will insurtech impact the insurance sector?

The most significant impact of integrating with an insurtech platform will be on the reduced churn and uptick in gross premiums. Using insurtech, insurers can offer innovative products to their customers and market them in a lesser amount of time compared to the traditional route. Moreover, digital integration will result in a better front-end user experience and cut down on the need of employing middlemen.

Another key area where insurtech integration can make a real difference is an increase in the productivity of the operations team. Insurers spend a significant amount of time managing workflows across various departments within the firm, which can lead to unnecessary bottlenecks. But embracing a digital solution means better workflow mechanisms that can contribute towards better performance of the entire organization.

Reduction in costs is also a major pull for insurers to consider digital integration as legacy systems often pose serious challenges to efficient project management. By leveraging the power of technology, companies can not only increase their overall efficiency but also position themselves as worthy a competitor in the market.

Let’s take a look at specific use cases of insurtech platforms benefiting insurance firms:

Embedded insurance

Embedded insurance is one of the easiest ways to offer personalized insurance products to customers, based on their needs. An embedded product is usually purchased during a commercial transaction involving another product or service. For example, purchasing auto insurance during a car purchase is an example of embedded insurance.

There are various strategies that insurers use when embedding their offering along with another product. These include:

  • Bundled: where the insurance product becomes a value-add to the product/service the customer is purchasing. For example, complimentary travel insurance when you purchase flight tickets.
  • Linked: where the insurance product is offered as an add-on to the underlying product or service during the sale. For example, if you purchase a mobile phone and a retailer gives you the option to insure your mobile device at the time of checkout.
  • Related: here the insurance product doesn’t become part of the transaction though it may be offered during the life cycle of the transaction. For instance, when you are prompted to add on a medical insurance plan at the time of booking a health check-up.

Insurtech can gather useful insights to help insurers decide which strategy would be more appropriate based on their offering and target audience. Insurers can also use the data for identifying cross-selling opportunities and opening up new revenue streams.

Digital distribution

Even though there have been changes in the insurance sector over the past couple of years, very little has changed when you think about insurance distribution. Agents and brokers continue to play a crucial role though customers may opt to purchase the policy directly from the insurer’s website or through an aggregator.

Opting for digital integration offers access to several insurtech products that link several independent agents with multiple insurers to sell insurance products more efficiently and in a cost-effective manner.

Product building 

Product innovation is critical to surviving in a hyper-competitive market such as the insurance sector.

Not only does insurtech simplify the entire process of getting, managing, and understanding insurance for the end consumer, but it also encourages firms to price their products more competitively and address the needs of their customers. As a model, insurtech propels firms to offer more value to the end customer, as customer satisfaction ranks above everything else, including increasing operational efficiency.

In some cases, digitization also nudges the business to completely overhaul the current business model to improve the overall customer experience.

Take, for example, how Covergo’s product builder supports the creation, configuration, and management of your insurance products at a lightning speed without writing a single line of code. Even if you have no tech background, you can still benefit from the product builder platform and develop products, no matter how simple or complex.

Are there any potential challenges of insurtech transformation?

There are a few bottlenecks for insurtech integration to happen effectively. Here are a few critical ones to consider:

Limited option of integration for firms with legacy platforms

In the case of insurers who have legacy IT platforms that are almost close to their expiry, the option of integrating with insurtech is limited.

Even for those who consider “refactoring,” which involves an alternation of the internal structure of an existing IT system without changing the core functionality, the results are not completely fruitful. Though it allows insurers to upgrade their technology, the costs can be much higher than anticipated which completely negates the purpose as insurtech is aimed at bringing the costs down.

And this is where partnering up with the right insurtech platform can make a real difference. Over time, APIs have emerged as the go-to solution for insurance firms who want to digitize their business, thanks to the multiple product configurations that APIs offer.

CoverGo offers 1000+ insurance APIs that can seamlessly integrate with process, legacy, or third-party systems. Our APIs are agnostic to the use case which makes them the perfect companion for your business, regardless of your size or scale of operation.

Insurtech processes are not easy to adapt to

Firms with legacy systems may find it slightly challenging to adapt to an insurtech platform as the existing systems aren’t designed for integration.

This may prompt some insurers to opt for building the system architecture from scratch to fit their unique requirements and aid a seamless integration. However, there are several disadvantages of this approach such as higher costs, longer timelines, and greater risk, compared to what a readymade insurtech platform offers.

Additionally, this approach may result in solutions that are not sufficiently innovative to sustain in the long run.

Delays in the approval process

Several insurance firms have long-drawn internal approval processes that slow down the integration.

When there are several stakeholders involved, who have conflicting opinions on the issue, it can take much longer to reach a consensus. In fact, several insurers have a perception that insurtech platforms lack adequate knowledge about legacy systems, making it difficult for them to suggest the right solution.

This can also increase the cost and time of implementing the new technology.

Challenging legal requirements

Given that the insurance sector itself is heavily regulated, integration with an insurtech platform is also rife with several legal issues.

The top concern is about data protection as insurtech involves a large amount of data collection. Similarly, while smart contracts that form the bedrock of insurtech accelerate the resolution of claims and promote quicker settlements, a lot depends on the type of legal framework available in the country where the insurance firm operates. Jurisdictions, where blockchain and smart contracts are not recognized by the legal system, may pose challenges for the insurance firm adapting to insurtech.

How to choose the right path?

Weighing pros and cons is a crucial exercise for any business that wants to try out something new. The case of the insurance sector is no different.

But the challenges posed by insurtech integration can be easily ironed out by parenting up with the right platform. Given that the benefits can help you to stay ahead in the game, it’s time to get in touch with CoverGo to schedule a demo right away. 

You can take full advantage of the seamless insurtech integration CoverGo offers to achieve your goals without overshooting the costs.