What does the future of Policy Administration look like?
We asked Stewart Reeder, Head of Insurance at Hitachi, for his expert prediction.
“It’s clear that legacy Policy Administration Systems (PAS) have inhibited insurers’ desire to transform, to become leaner and more agile. The future of the PAS is likely to be shaped by several key trends that move us away from large monolithic systems, and firmly into the era of best-in-class ecosystems. Policy Administration Systems will be cloud native, making them more agile, secure, scalable and easier to integrate with other systems such as a dedicated Customer Relationship Management (CRM) or Documentation Management platform. They will be more flexible and configurable due to low-code/no-code business rules engines, and other configuration tools which enable insurers to crease and support an infinite array of products to suit their customer needs.
Data within the Policy Administration System will be readily available to the insurers without the need for additional charges, queries, reports or analytics from the software provider. Unrestricted access to this data will enable insurers to perform real-time data analysis for Connected Insurance or Usage-Based Insurance (UBI) and enable dynamic pricing. Artificial Intelligence (AI) and Machine Learning (ML) will feature extensively to automate tasks, improve risk assessment and streamline claims processing. Querying the data will be intuitive, performed using natural language queries that will help insurers to identify trends and coverage gaps, as well as predicting customer needs so more targeted products or services can be suggested.
Pricing models to subscribe to the Policy Administration System will be transparent and lower cost, as will the costs of implementation and integration. Ultimately, the Policy Administration Systems of the future will help insurers to innovate more quickly, delivering a superior customer experience whilst reducing operational costs.”
To find out more from the experts on the future of policy administration, download a copy of the Modern Insurance Magazine special Genasys edition.
