This guide has been made for insurance executives who want to transform policy administration into a customer experience advantage, it explains:
1. Why traditional approaches to policy administration don’t meet the needs of modern, techsavvy customers
2. How new technology is driving changes to the discipline of policy administration
Customers Expectations are High
It starts with a simple address change. Or a child starting driver’s education. Or building an addition to a home.When life changes, policy administration steps in.
As one of the first touchpoints between insured and insurer, policy administration is the first line of defense against competitors and a chance to create loyal customers. So why are customers dissatisfied, and why haven’t insurers taken advantage of this opportunity?
Information systems are at the core of policy administration. Tasked with responding to wide-ranging service requests covering everything from policies and coverages, to billing questions, to final notice of loss for claims, policy administrators need access to information — and lots of it.
In an ideal world, the policy administration team would have a 360-degree view of the customer, with easy, instantaneous ways to make basic changes. Today’s insurers struggle to achieve that ideal, and often fall short in delivering positive customer experiences, simply because their systems fail to make information available and accessible.
When Nuxeo speaks with policy administration teams and executives, we hear frustration — much of it due to disconnected information silos that fail to take a holistic view of customer experience. Here are a few examples of what we heard:
- Disconnected, inconsistent responses to requests (often made to teams siloed by channel) frustrate customers with omnichannel experience expectations
New Customer Communications
- Modern channels, such as mobile and chat, are difficult to integrate with existing legacy applications
- Phone channels fail to integrate with information systems, causing customer delays as policy administration representatives struggle to locate and retrieve relevant content
- Inbound mail often goes undigitized, requiring manual counting, distribution, and status tracking
- Basic modifications, like a change of address, can be applied inconsistently across multiple systems — leading to confusion, delay, and repeated work
- A lack of automation requires managers to manually track and report employee productivity
- Paper filing systems lack security and audit trails that yield insight into who is accessing customer information
- Managers find it challenging to manually distribute workloads among policy administration representatives, taking time away from more critical management activities
- Policy administration representatives struggle to locate and retrieve associated documentation to respond to service requests and customer inquiries
Modernizing Policy Administration for Competitive Advantage
Today’s digital consumers expect real-time responsiveness from their insurers — on par with the experience they get from companies like Amazon and Google.
Legacy systems, manual processes, paper files, and scattered information make that level of responsiveness all but impossible. Rapidly-evolving customer expectations mean that retention depends on eliminating long hold times, call-backs, and snail-mail processing.
Next-generation insurers give customers “wow” moments by adapting technology to modern needs:
- Integrated phone systems allow call center operators to instantly know who is calling, with details on-screen and ready to use
- Online forms make use of existing data, are easy to use, mobile-friendly, and do not require reentering known information
- Omnichannel policy maintenance provides customers with consistent communication via phone, online, mobile, and mail channels
- Version control enables easy tracking of all changes to policy documents and supporting materials
- Self-service policy maintenance empowers users to take more control over account details, offering the ability to edit addresses or modify policy preferences
- Automatic resource allocation guided by machine learning distributes tasks to the best resource based on availability, skill set, and priority
- Dashboards and analytics provide instant, real-time feedback on individual policies, the whole book of business, or any level in between
- AI-driven decisions to suspend, holdover, or accept policies can be issued automatically, or forwarded to relevant staff for approval
Stop Relying on Legacy Information Management Systems
As a low-touch industry with very high lifetime customer value, insurance offers few opportunities to impress customers — and success or failure makes a big impact. Policy administration is one of the areas where insurers can delight or disappoint, so making the experience as simple and painless as possible is critical.
Modern customers expect frictionless, omnichannel interactions with their insurer. When they make a change to their policy, they demand speed, transparency, and consistent communication.
Legacy systems are slow, inefficient, and make access to data difficult. These systems create disappointing customer interactions, and traditional insurers cannot keep up with disruptive competitors unless they modernize and future-proof their policy administration systems. A customer-focused mindset is the only way to compete effectively. In the 21st century, insurers that deliver a superior, fast, omnichannel customer experience will succeed. All others will fail.
Ready to leverage self-service capabilities, process automation technology, and AI to deliver faster, simplified policy administration, increase efficiency, retain and grow your customer base, and ensure long-term viability with a modern claims management solution?
See how we can transform your policy administration to improve customer satisfaction, and eliminate inefficiencies, check out what why we excel at content management for insurance companies.