Software As A Service Brings Immediate Return on Investment
Software-as-a-service providers frequently promote the long-term savings offered by cloud technology. Smaller insurers might not have the time to wait for a return on an investment. Here are a few ways cloud-based insurance management software immediately brings a return on investment.
Lower IT Costs
The first savings you will notice after putting insurance management software in place will be a decrease in hardware and IT costs. Outsourcing your IT services to the cloud results in improved security updates and immediate policy updates. Insurance specific cloud-based IT providers are constantly updating their platform to ensure regulatory compliance that is both local and federal. Actuarial data is made accessible to those who need it most and it can be updated in real-time.
In addition to improved security and compliance, cloud-based platforms never become obsolete. Your initial investment is the only investment you will need. Upgrades are taken care of by the software provider.
Improved Customer Service
Insurance management software integrates with existing business processes, thus speeding up processing and updating information in real-time across silos. Customer service reps have access to the same information as brokers and underwriters. This means they are able to provide customers with the most up-to-date information and policy estimates.
Cloud-based technology also encourages customers to pursue self-service options. Customers can log in to a secure platform and file claims, update personal information and request quotes. This kind of immediate service is incredibly valuable for small insurers when they are competing with online insurance companies.
Cost-Efficient Workflow Management
Manual processes are time-consuming and error-prone. Automated processes are faster and more accurate. Integrated processes are the next level in policy management efficiency. Cloud-based software is dynamic in the sense that it is capable of rapidly updating information and making decisions based on new information. If a broker or agent makes a change in a client’s risk assessment, this is instantly shared across silos and reflected in the client’s policy.
Thanks to cloud-based software’s pricing model, smaller insurers can afford customized products without high overhead costs. Month-to-month contracts save on initial investment costs and allow employees to gain confidence in the software and offer feedback on its implementation.
In 2015, industry experts predicted that insurance companies would fully adopt cloud software within the next five years. Smaller organizations still have time to make the transition without being left behind.