Insurance agency software solutions allow indemnity companies to offer their customers instant access via phone, tablet, and computer to services their services. In addition, while allowing consumers to get to their policy information, these systems also enable insurance agencies to comply with intricate regulatory demands and also keep costs down.
They also help insurance agents and underwriters better us their time because this software can take over many monotonous functions such as document management and policy transactions, as well as assisting with fixing issues, making cancellations, reinstatements and renewals, endorsements and more, easier to complete and keep track of.
Furthermore, by using agency software, insurance company executives can keep better track of their clients, agents, policies and office information. There are also software systems that keep track of the administrative side of insurance companies.
The insurance software solutions is a lucrative industry that took in over $8 billion in 2016, alone, according to the market research company IBIS. According to IBHS, the industry increased its annualized rate in the five years up to 2016 by 0.4%. says. Additionally, over the next five years, the growth rate is projected to increase to almost 4%. Therefore, by 2021, revenue will reach nearly $10 billion.
The type of software used depends on the services that the company provides. The more popular types are policy management software, claims management software and analytic software which helps detect fraud and determine insurance quotes.
One of the reasons that this software has taken off is its ability to organize and analyze industry data. By doing so, Insurance companies are better able to identify and manage fraudulent claims. This is important because the Insurance Information Institute estimates that the industry looses over $32 billion each year to fraud. That is almost 10 percent of the property-casualty claims that were made in 2016.
Moreover, the III reported that while 95 percent of insurers say they use antifraud technology, about half are prevented from fully implementing these systems due to a lack of technological resources. However, at the beginning of 2016, it was reported that more than 25 percent of insurance companies were using predictive analytics to address fraud. In the next two years, that number is expected to jump to more than 70 percent.
In fact, some of these programs can interpret claims adjusters’ handwritten notes and is also able to scan a claimant’s social media accounts for suspicious activity in nearly real time. This, along with other changes shifts the focus from the claim itself to the individual filing the claim.
One caveat to remember is that data collected is not always accurate or easily manipulated. As with many other interests involved in data collection, there are also privacy concerns and uneasiness in allowing access to personal information. Therefore, it alone cannot be solely relied upon in instances of fraud.
As with pretty much every other industry, in order to stay on top, those involved in the insurance industry is constantly improving its software and other computer systems.