In part one of this series on rating systems, we looked at how traditional development processes can expose your insurance business to risk. Among the most serious of these are having a single point of failure in your pricing model and the financial risks that result from long development cycles that limit how often you can update pricing. In this post, we take a look at a new approach that enables you to complete a rating initiative by defining and deploying rating models, tables, and algorithms in a fraction of the time, while empowering you to safeguard your margins by revising pricing as often as your business demands.
It’s the ultimate irony. Insurance carriers are in the business of risk management, assessing risk while predicting revenue and expenses and then pricing for that. However, the mechanisms many carriers use to generate the rating systems their pricing depends on expose them to risk.
You got the email. “We need to improve our customer experience. Our conversion and retention numbers are down. What can you do?” In fact, you got several emails and briefings from marketing and line-of-business leaders, and you were copied on a complaint from a key producer citing frustrated policyholders. You know what it will take, but how do you explain in a simple and concise way to peers that it will entail a whole new level of integration between your sales, marketing, and core systems?
Like the lives of so many celebrities and reality show families, whose relationships and daily interactions are splashed across our screens, insurers’ views of their customers present the same frustrating dilemma: sometimes they want to reach into the customers’ world and try to help influence decisions. But just like on TV, it seems today’s insurers can look, but aren’t actually touching their customers. True customer engagement continues to evade even the savviest of carriers.
It has been a perennial topic. Much has been said and copious ink spilt on the suite vs best-of-breed core system debate. Adding to it, I recently participated in a webinar hosted by Insurance Networking News entitled “Have Suites Won the Policy Admin War?” It reviewed the pros and cons of implementing full suite core systems vs integrating various best-of-breed solutions. But this time I found it hard to repress the thought: “Why are we still talking about this? The war is indeed over. “
Where do you get a game plan for a game you have never played?
The St. Louis Cardinals recently got themselves into a scalding pot of legal and ethical hot water for their alleged hack of the Houston Astros database. Baseball pundits speculate that the Cardinals knew exactly what they were looking for, where to find it and the competitive advantage it held for their game plan.
This isn’t the case for many insurers as they undertake core insurance systems replacements, often for the first time in their careers.
The results are in from our second annual Enrollment Technology Survey, and guess what? There are really no surprises. The results of our survey of LIMRA Enrollment Technology Conference attendees and others didn’t show large differences with our 2014 survey. But, like a tipping point being reached in a slow arch, some small measures give clues to the direction of insurer initiatives in enrollment plans and enrollment technology. And unfortunately, technology infrastructure limitations are still standing in the way of insurers being able to execute their growth strategies.
Enrollment options are expanding. With dozens of third-party vendors (including the emergence of new market places that include public and private exchanges) the opportunity for carriers to successfully increase their enrollment rates and get their products out to the various markets has never been greater.
Native CRM and communications module, pre-configured LOB solutions and data integration highlighted
Citing a range of operational strengths, CEB TowerGroup awarded PolicyCore™ a “Best-in-Class” award in its recently released Policy Administration Systems Report.
Congratulations to customer AAA Northern California, Nevada & Utah Insurance Exchange for their recognition as a Celent 2013 Model Insurer for policy administration. Several Insurance Exchange and Exigen staff were on hand in Boston in February at the awards ceremony that highlighted the benefits of the company’s transition to a new policy administration system and their utilization of effective change management practices to accomplish it.