Custom Insurance Policy Administration System
Features, Integrations, Benefits, Pricing
ScienceSoft applies 11 years of experience in insurance software development to introduce reliable insurance policy administration systems.
Insurance Policy Administration System: The Essence
An insurance policy administration system streamlines the management of the entire policy lifecycle, from issuance, through billing and updating, to termination.
The software enables analytics-driven risk assessment, demand forecasting, and policy pricing. It provides automated recordkeeping and centralized storage of all policy-related data and offers customer self-service capabilities.
Custom insurance policy administration software effectively handles complex and unique policy management processes and is especially helpful for carriers with a wide and varied insurance product portfolio.
Key Features of an Insurance Policy Administration System
ScienceSoft helps insurance businesses define and implement the optimal functionality to meet each company’s unique policy administration needs. Here, we share a list of features that form the core of an all-encompassing insurance policy administration solution:
Insurance product management
- Template-based creation of insurance products with user-defined terms: type, coverage limits, price thresholds, etc.
- Rule-based insurance product cataloging.
- Configurable rules to adjust the insurance terms across the product lifecycle, e.g., offering discounts and extended coverage for newly-introduced products.
- Automated updating of insurance product information across the required systems as new relevant data appears.
- AI-based identification of the cross-selling opportunities to offer products in a bundle.
- Automated aggregation and processing of requests for an insurance quote from multiple channels (a customer portal, email, phone, etc.).
- Calculating the policy price based on user-defined criteria: insurance duration, coverage amount, customer location, customer claim history, etc.
- Scenario modeling and what-if analysis for various policy prices.
- AI-powered recommendations on the optimal policy price for each customer based on the analysis of customer risks and expected profitability.
- Automated quote generation and submission to customers.
- Automated generation of insurance policies.
- Customizable policy templates for various insurance types, locations, customer segments, etc.
- Multi-currency and multi-language policies.
- Configurable policy approval workflow (collecting approvals of internal stakeholders and a customer).
- Scheduled and ad hoc policy submission to customers.
- Calculating the premium and taxes for each issued policy.
- Automated creation of one-time and recurring invoices and sending them to customers.
- Automatically generating and inserting QR codes and payment links in the invoices.
- Instant processing of premium payments via connected payment gateways.
- Support for various payment methods: bank transfer, card, check, digital wallet, etc.
- Real-time invoice tracking by status (sent, paid, past due, etc.).
Policy updating and renewal
- Automated updating of policy information like customer data, the insurer’s business data, or insurance product specifications change.
- Dynamic insurance repricing and policy updating based on the AI-powered analysis of customer risks.
- Batch and personalized communication of policy updates to policyholder(s).
- Notifications to the insurance teams and customers on policies approaching the termination dates.
- Automated policy renewal upon a customer’s request.
- User-defined rules for automated recalculation of insurance price and adjustment of coverage terms for the renewed policies.
- Scheduled policy termination in case of premium non-payment.
- Customer self-registration, managing and updating personal and business information.
- Automatically generating and submitting requests for insurance quotes.
- Paying for the insurance via a preferred payment method.
- Notifications to customers on the received quotes, successful payments, documents that need updating, etc.
- Instant messaging to communicate with the insurance specialists.
- AI-powered virtual assistant to help customers solve operational, transactional, and security issues.
Policy data management
- Centralized storage of all policy-related data: product specifications, policy terms, information about customers, customer interaction history, etc.
- Centralized storage of issued policies.
- Automated policy linking to the relevant contract.
- Search engine with filtering and metadata querying to navigate policy-related data and documents.
- End-to-end audit trail of all manipulations across insurance policies.
Analytics and reporting
- Calculating and monitoring the number of policies issued by period, average policy amount, underwriting speed, new policies per agent, quotas vs. production, and other metrics.
- Configurable analytical dashboards for various user roles: agents, underwriters, legal specialists, risk analysts, etc.
- Scheduled and ad hoc report submission to the required regulators.
- AI-powered forecasting of insurance demand.
Security and compliance
- AI-powered fraud detection.
- E-signing of insurance documents.
- Role-based access control.
- Multi-factor authentication.
- Data encryption.
- Compliance with KYC/AML and OFAC requirements, IFRS17, CCPA, CPRA, GLBA, SOC1 and SOC2, NYDFS (for New York), SAMA regulations (for the KSA), MCEV principles and GDPR (for the EU), HIPAA (for health insurance), and more.
- Real-time compliance monitoring and scheduled compliance reports.
Important Integrations for the Insurance Policy Administration System
- For prompt and accurate policy issuance and updating.
- For data-driven planning of marketing activities.
An agency management system
For accurate workload planning, financial planning, and streamlined task assignment.
- To recalculate due premium amounts for the renewed policies taking into account a customer’s claim history.
- For streamlined claim validation.
For comprehensive policy analytics and advanced report visualization.
Customer risk data sources
Internal and third-party asset tracking systems, medical data platforms, credit rating platforms, etc.
For automated policy quoting with a full insight into a customer’s risk profile.
Customer interaction channels
Mail systems, messaging apps, business phone systems, etc.
For fast and convenient omnichannel customer communication.
ScienceSoft’s best practice: Consider employing a service-oriented architectural model if you want seamless software updates and easy reuse of policy-related rules, algorithms, and templates across the enterprise-wide IT ecosystem.
Factors that Drive ROI for the Insurance Policy Administration System
Below, ScienceSoft outlines a range of important factors that help increase payback from the insurance administration solution:
To eliminate time-consuming policy administration tasks like policy creation, registering, updating with new data, reissuing, etc.
To enable access of the insurer’s employees and policyholders to policy-related data and documents on the go.
Self-service capabilities for customers
To drive higher customer engagement and satisfaction, reduce the insurance team’s workload.
To accurately forecast insurance demand and get intelligent guidance on optimal policy pricing and upselling.
Focus on security
To protect the insurer’s IT ecosystem from all types of cyber threats.
Make sure your policy administration system is scalable to handle various amounts of data, including voluminous data in various formats, from handwritten text to unstructured IoT big data. This will help you run document-intensive transactions smoothly.
How to Develop an Insurance Policy Administration System
Insurance policy administration software development is a way for companies to get tailored capabilities for efficient digitalization of their unique policy issuing, updating, and renewal workflows. Below, ScienceSoft outlines key steps to build a custom solution:
Business needs analysis and requirements engineering for a custom policy administration system.
Designing the functionality (including security and compliance features), architecture, and tech stack for your policy administration software.
Project planning: deliverables, team, duration, budget, etc.
Policy administration software development.
Insurance policy data migration (from spreadsheets or a previously used policy management tool).
Establishing integrations with the required internal and third-party systems.
Continuous support and evolution of your policy management solution (optional).
Costs and Benefits of Insurance Policy Administration Software
From ScienceSoft’s experience, building a custom insurance policy administration system may cost around $200K–$600K+, depending on the solution’s complexity.
Want to know the cost of your tailored policy management solution?
With policy management software, insurance companies achieve the following benefits:
in the productivity of the insurance teams due to the eliminated low-value tasks
Up to 4x faster
policy quoting, issuing, updating, and reporting due to automation
in operational costs, including labor costs, due to optimized policy administration workflows
in revenue due to AI-based guidance on the most profitable insurance prices and policy cross-selling opportunities
of the up-to-date policy-related data due to real-time data aggregation and centralized data storage
with the required legal regulations due to the automation of compliance rules and real-time compliance monitoring
Off-the-Shelf Software ScienceSoft Recommends
Below, we list the leading policy administration software market offerings and describe their capabilities and limitations. These products provide comprehensive functionality to meet the non-specific business needs across the automation of policy issuance, updating, and renewal tasks.
Oracle Insurance Policy Administration
Group insurance, including health insurance.
- Template-based creation of insurance products.
- Setting up complex benefit plans for large groups and national accounts.
- Rule-based underwriting and policy updating.
- Support for dynamic quoting.
- Real-time access to policy data for employees and customers.
- Detailed audit trail of insurance transactions.
- Built-in task management functionality.
Solution integration with your legacy internal systems is costly and time-consuming. Plus, the product may not provide compliance with the local regulations you’re subject to.
VPAS Policy Administration System by Infosys McCamish
Personal life and annuity insurance.
- Automated creation and updating of insurance policies.
- Automated calculation of customer segment-specific premiums.
- Various billing methods: direct mail, EFT/ACH, credit and debit card, etc.
- Support for multiple currencies and languages.
- Tracking and reporting the essential policy metrics.
- Instant messaging for internal teams and customers.
- Compliance with AML and OFAC requirements, GLBA, SOX, and more.
The product provides limited customization capabilities. Also, it doesn’t cover quoting and rating functionality.
When to Opt for a Custom Insurance Policy Administration System
ScienceSoft recommends building a custom policy management solution in the following cases:
You need software providing specific functionality, e.g., AI-powered risk analytics, dynamic insurance pricing, or blockchain-based policy recordkeeping.
You need a solution providing compliance with all required legal regulations, including local regulations.
You want to leverage advanced security of policy-related data and documents.
You need a system that can be easily evolved with new functional and non-functional capabilities.
You want smooth and cost-effective integration of insurance policy management software with your corporate tools.
You have large teams involved in policy administration workflows and want to avoid high subscription costs for off-the-shelf products, which scale as the number of users grows.
Implement Effective Insurance Policy Management Software with ScienceSoft
In custom software development since 1989, we know how to create a powerful solution that can meet your unique insurance policy management needs. We provide:
- Analysis of insurance policy administration needs.
- Suggesting optimal features, architecture, and tech stack for an insurance policy administration system.
- Preparing a plan of integrations with the required internal and third-party systems.
- Consulting on security and compliance.
- Implementation cost & time estimates, expected ROI calculation.
End-to-end development services
- Insurance policy administration needs analysis.
- Software conceptualization and architecture design.
- Policy administration system development.
- Integrating the solution with the required systems.
- Quality assurance.
- User training.
- Continuous support and evolution (if required).
ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. Since 2012, we help insurance companies implement effective policy administration solutions. Being ISO 9001- and ISO 27001-certified, we apply a mature quality management system and guarantee that cooperation with us does not pose any risks to our customers’ data security.