In the wake of the new normal, insurance providers worldwide have come under increasing pressure to keep pace with the world’s expanded risk management needs. But achieving this is easier said than done, especially if an organization doesn’t have sufficient resources to dedicate to such pursuits.
For most providers, updating to a modern insurance management system is the only way they can find the increased revenue that will take them to their next stage of growth. But how and why exactly would this action yield such significant results, in the first place?
If you’re considering upgrading your own insurance management system but aren’t sure whether it’s worth the time or effort to do so, read on. Here are six ways finding the right tech solution can improve revenue management for insurers:
Hassle-Free Billing Processes
There are direct and indirect costs associated with billing customers. The actual processing of bills has an associated cost, which gets higher the more human input is needed. Additionally, there are associated costs with service supply chains, time waste, software subscriptions, hardware expenses, and office supplies. These costs also get compounded by errors and delays.
Most—if not all—of these bottlenecks could be addressed through the use of better insurance automation technology. Automating different billing steps not only helps bring down the cost of invoicing insurance policyholders, but also helps them to get their invoices earlier. This can make it easier for them to pay, thus improving cash flow for the insurer.
Improved Process Visibility
The first step to solving any issue is to define the problem. However, this first step can be extremely difficult in insurance due to the sheer number of involved parties and interconnected systems. The ability to quickly check how processes are interconnected at a glance offers many possibilities for improving insurance revenue.
As they are, insurance systems are an incredibly complex web of different processes. The complexity of these systems tends to further increase the more parties are involved. Unfortunately, these complications can cause serious delays which often impact the quality of service provided.
Today’s insurance management systems promise to make these processes much more transparent, thus improving outcomes and increasing revenue. With better data and process visibility, decision-makers can leverage new tech to easily identify process inefficiencies, service gaps, and other areas for improvement, effectively reducing overheads and boosting revenue potential.
Automated Data Collection and Entry
One major bottleneck in insurance processes is the need for humans to enter and collect data.
In the context of healthcare, an over-reliance on a small pool of increasingly pressured workers to collect and enter increasing amounts of insurance data already results in billions of dollars in waste each year.
By automating as much data entry and collection as possible, insurers can focus more on delivering quality service and less on administrative tasks. This could prevent administrative waste and help improve service levels. Better service and less waste will naturally translate into additional revenue for insurers.
Better Risk Optimization
More accurate data entry and collection will permit insurers to draw from more accurate data sets. What this means is that they can assess relevant risks more precisely than ever before.
Better data allows insurers to optimize policies and offer them to a much wider set of people at better prices. When combined with the right marketing approach, improved insurance management systems can lay the foundation for an insurer’s next stage of growth.
Better Operational Flexibility for Different Customer Types
Current-generation insurance management solutions can shorten time-intensive activities such as process management, data-gathering, and risk assessment without losing accuracy. This gives insurers much more flexibility, allowing them to offer highly customized policies to a wider range of insurance customers.
What this means is that insurers can theoretically pivot to new opportunities in just weeks rather than years. The boost in data and process management capabilities can also reduce the risks of entering new markets and addressing the needs of new customers, giving more opportunities for increasing revenue and new avenues for growth.
Improved Customer Journeys
Happier policyholders are less likely to switch insurance providers. The more loyal policyholders an insurance provider has, the better the organization’s revenue. Having happier, more loyal policyholders also helps to bring down the cost of acquiring new ones.
Fortunately, a better insurance management system opens up several possibilities for improving the experience of insured parties.
For example, basic customer service questions can now be easily handled by chatbots, greatly speeding up the time needed to provide answers and freeing human customer service agents to concentrate on more complex inquiries. These systems also permit year-round service at all hours, something that is expensive to do with traditional customer service frameworks.
Insurance policyholders can also use new systems to do customization and personalization by themselves. This saves time and labor compared to older systems where insurance representatives would have to spend some time doing the needed customizations for each member.
Is It Time to Upgrade Your Insurance Management System?
Using insurance management systems with the right set of technologies allows insurance providers several avenues for optimizing their revenue. Better tech-enabled systems can reduce waste, improve customer experiences, reduce labor requirements, and increase potential markets.
As more insurers adopt modern insurance solutions, these systems will not only become important for growth, but also competitiveness. By adopting the right tech solutions early, insurance providers can put themselves in a good position to get a better hold of their intended markets.
Feature image credit: pixabay
