7 Ways Technology Augments the Life Insurance Lifecycle

Ahead of the game: Digital transformation is happening faster than expected

The life insurance industry falls behind others when it comes to digital transformation. Largely manual and paper-based processes create significant bottlenecks which are increasingly costly and frustrating. While insurers have been aware of the need for digital transformation, until recently, progress has been slow.

The pandemic has played a large role in accelerating digital transformation in the insurance industry. Overcoming challenges with conducting customer interactions at a distance has required the quick implementation of digital solutions. In order to enable stakeholders to continue developing new business and service existing policies, digitalization projects that may have spanned 3-5 years are being fast-tracked to begin immediately and finish in just months.

Plans are being pushed forward and the prioritization of investments is being re-evaluated. As a result, carriers who fail to take part in transformation risk the possibility of being left behind.

Having said all this, what technology opportunities are available to assist carriers in revolutionizing the end-to-end insurance policy lifecycle?

7 Ways Life Insurance Software Solutions Enable End-to-End Digital Transformation

1.?????Increase the speed of product development

Carriers must be able to react quickly to developments such as low-interest rates, regulatory changes, and changing client expectations by launching new products or making regular enhancements. However, archaic policy administration systems (PAS) , which require base code modifications every time products are amended, stand in the way of quick product development. Because of built-in business rule capabilities, the best modern PAS systems enable business divisions to drive faster product development. The time to market can be reduced from a year to a few weeks.

2.?????Leverage available data for deep insight

Data is critical to the success of life insurance companies. Unfortunately, due to aging policy administration systems, crucial information is being lost in spreadsheets and siloed applications. Having access to insightful data, and the tools to analyze metrics is a strategic asset that can be capitalized on through the implementation of modernized insurance software solutions . The right data, used in the right way, can be used to forecast trends, spot opportunities, and accurately focus marketing and product development in response to client needs. In order to capitalize on their data, carriers require PAS solutions?that support modern APIs and allow the flow of data into the data analytics engines that will elevate all carrier capabilities?

3.?????Improve your overall customer experience

A streamlined digital experience is important in today’s day and age. Insurance customers expect a real-time, personalized experience. Unfortunately, the slow pace of technological advancement in the insurance industry has not kept pace with those changing expectations. Legacy technology systems are preventing insurers from creating streamlined processes and delivering personalized solutions. Some significant issues that stand in the way of a superior customer experience include the timeliness of the underwriting and approval processes, the inability to access client data, and the inability to track the status of policy applications.

4.?????Ensure compliance

Documentation is required to generate proven audit trails under regulations governing carrier, distributor, and advisor sales behavior. Manual, paper-based procedures make this a time-consuming, frustrating?process that poses a threat?of noncompliance.

Advisors can automate compliance and lessen the strain on their practice?by combining integrated digital sales tools with advisor-specific CRM and financial planning solutions.

5.?????Facilitate faster commission payments

When mostly manual processes are used, all industry players feel the pain of calculating and paying proper commissions in a timely manner.

Modern agency management technologies automate intricate commission payment operations and enable data flow?between stakeholders, reducing friction in the value chain and improving accuracy.

6.?????Boost the efficiency of your advisors

Many advisers still manage their practices using paper-based, manual methods. These onerous approaches rob them of time they could be spending ?prospects and clients. It limits sales growth.

Insurance advisor-specific CRMs and integrated planning tools relieve advisors of administrative responsibilities, giving them more time to assist their clients.

7.?????Improve the efficiency of your operations

Insurance operations are complicated, and manual routines can create bottlenecks that slow everything from product development to policy approval.

Stakeholders are being challenged to rethink their antiquated procedures and systems. Modern PAS and front-end tools will eliminate the need for paper, boost efficiency, and significantly cut expenses

The time is right for digitalization

The moment has come for insurance carriers and distributors to develop their own digital transformation roadmaps. The first stage could be a basic move from a legacy policy administration system to a modern policy administration system, or it could be a more rapid rollout of digital sales and service capabilities to support new business growth. The decision is based on the current IT infrastructure, budget, and strategic priorities of each firm. However, the unavoidable truth is that industry change is well underway, and those that delay making these critical decisions will fall behind the rest of the market.