Regardless of how much money an insurance company collects via premiums, operational costs can be a millstone to your profits. But by reducing them, you have more headroom to invest in your business, improve processes, and keep shareholders smiling. With the right policy administration software, you can chop operational costs by as much as 75%. Here’s how policy admin software can help you reduce costs.
Centralize Policy Admin Using a Single Software Platform
With a solution that centralizes the administration of all policy details, you can save your employees and decision-makers an enormous amount of time. Often, the burden of switching between tasks that are managed in different platforms can eat up an employee’s day, reducing productivity one click at a time. But with everything centralized, you can navigate between features in the blink of an eye.
For example, if you want to create a new business quote for an existing client, you need as much information at your fingertips as possible. Otherwise, the quote could end up being either too low or too high. A quote that’s too low increases your risk exposure, and one that’s too high can push the client away. However, if you have the “New Business Quote” and “View Diary” modules on the same screen, you can quickly pull up the info you need to make an informed decision.
For instance, there may be something in the diary regarding how often the insured files claims, the kinds of incidents they tend to report, and how they do so. If the customer files claims haphazardly, looking for as many payouts as possible, for example, you may want to quote them a higher rate for their renewal.
With the ability to access this kind of info within a single platform, you save money when it comes to:
- The time it takes to generate a renewal quote
- The costs of administering future claims for this client
- Reducing your loss ratio for a potentially problematic account
Provide Customers with Access to Policy Info
By providing customers with the policy information they need via RMIS software, you kill two birds with one stone:
- You give policyholders the kind of data people have come to expect in the digital age.
- You save time and money by circumventing numerous calls to agents from people looking for simple info.
For instance, suppose you provide insurance to a contractor that’s about to bid on a project the city is hiring for. They need to have a certain amount of liability coverage to qualify for the project. Off the top of their head, they have no idea how much liability coverage they have.
But because you have policy admin software that gives them access to their account data, they can quickly pull out their phone and see their coverage limits. In a minute or less, they have the data they need to decide whether to go ahead with the bid or buy more coverage so they can throw their hat in the ring.
You’ve saved them the headache of having to call or email, then wait to connect with someone, and you’ve freed up whoever would’ve had to handle their inquiry. Instead of spending time on the phone, writing an email, and looking up policy data, your agent could invest their energies into drumming up more business.
Retain Customers and Employees and Avoid Expensive Turnover
Retaining customers, especially your “A” or high-value clients, is far easier when you have the right RMIS software. As mentioned above, customers expect—and often need—convenient access to info. And agents need quick, streamlined workflows so they have the bandwidth to ensure your top clients stay happy.
In addition, by using risk management software to streamline workflows, you make life easier for your agents and staff. Employee satisfaction goes up, pulling retention rates along with it.
This saves considerable money, especially when you factor in the cost of acquiring new customers, recruiting and hiring new staff, and the training and onboarding process.
Reduce Costs Using Business Analytics
The ideal RMIS software solution gives you easy access to customer data that can be invaluable when trying to cut or control costs. With a few quick clicks or taps, you can run reports that surface valuable intel—then use that data to save money, bolster profits, or make decisions that pay dividends down the road.
To illustrate, suppose you have 25 customers that need to renew their policies. But you only have two employees with the space in their schedules to reach out to your clients and facilitate their renewals. To help them prioritize which customers they reach out to, it’d be nice to know which renewals would bring the most premium revenue.
Well, with the right policy admin software, this is easy. On a single screen, you can see:
- How much premium funds a renewal will bring your company
- The difference between what they are paying in premiums now and what they’ll be paying after renewing.
You can then use this info to rank and prioritize your customers up for renewal—making more money for your company and life a little easier for your hardworking staff.
Learn more about how Insurance Policy Administration Software can benefit your organization. Talk to the experts at Ventiv Technology today.