PAS gets a redefinition as new data sources, AI, ML, and recommendation engines change the insurance offer lifecycle
The very notion of what has always been the core operating requirement of an insurer—policy administration—is changing. It is not your father’s idea of a policy administration system. Data has been knocking on the policy administration system (PAS) door for some time. Now there is an explosion of data and a growing amount of smart data from AI and ML. As a result, the venerable PAS is getting a new job description.
Until the very recent past, carriers did not place an “openness” requirement on their PAS systems. But the market trend away from a product-centered- to a customer-centered approach that mirrors consumer experiences in other industries has sent insurers back to their drawing boards, and in most cases, into an earnest discussion with their PAS supplier. The redesign calls for faster and better data collections and offers management.
There is a big top-line payoff for insurers. It means less likelihood that you will lose the prospect to competitors if he/she is shopping around because you are taking less time to collect data, less time to make an underwriting decision, and making a better product offer.
I invite you to read the remainder of my article, which was published in the March edition of National Underwriter Property & Casualty edition. Click on the image below to access a full PDF.
Rowshi Pejooh is executive vice president, Product Management at EIS.