Essential Characteristics of Policy Administration System (PAS) and Need in Insurance Companies

Author: Steven M Richard

Insurers are looking for ways to reduce costs and improve operational efficiency. Implementing policy administration system (PAS) helps insurance carriers to operate efficiently and get optimal results. Implementing an innovative PAS enables them stay ahead of competitors in the market.

Characteristics of Policy Administration System

  • Adaptability

Traditional form of PAS lacks being versatile to add or remove products in the market where the business insurance needs change constantly. Hence, ensure whether the system supports your current business needs and other additional requirements which may arise in the future.

  • Easy Access

Majority of the customers prefer to search online and request quotes from multiple insurers. If your PAS is not web enabled, then you are missing opportunities to contact that group. Additionally, ensure that the system is mobile friendly.

  • Easy to Use

Make sure that the new system operation is not only functional but also user friendly. Utilizing more time and resources means that your system is less effective.

  • Scalability

The system should be scalable enough and allow new features and more customers without any major issues. It should be able to scale up to any number of transactions with no changes in the programming side.

  • Flexible Structure

System hardware should be flexible and adapt to changes that are made by adding new items without the requirement of database or programming changes.

  • Configuration

Insurance products often have overlapping features. The new PAS can be made effective by making sure it provides effective configuration sharing for different products with common characteristics.

Why of Policy Administration

  • Policy administration system is insurance software that helps in managing the customer records and logs activities like invoicing, billing, claim settlements, etc.
  • PAS effectively manages high volume of customer records and reduces paper work by maintaining the records electronically.
  • Record manager updates with timely changes and saves information of each new customer.
  • It also deletes records as soon when policy is settled and ensures that no useful data is lost in the process.
  • Policy administration system can avoid the damage which can be caused while settling claims. This is the major aspect of any insurance company where any mistake done while settlement may damage the reputation of the company.
  • Policy administration system helps to make the settlements easy by calculating the amount accurately using the stored data.
  • PAS validate the customers' data as it goes through and alerts the company about the warning and compliance issues (if present).
  • PAS provides an interface which makes it easy for the employees to find information or data and serve customers.
  • Programming skills and advanced knowledge are NOT required to work a policy administration system.

Policy administration system not only maintains and manages records effectively, but also helps in reducing the work load by avoiding loss of data and lowers cost.