There is no universal definition of insurance solution but, according to a general idea, it is software or a set of technological solutions given for economical management of insurance business. It contains some independent parts like fund management or offers presentations. Mainly, insurance solutions aim to resolve issues like product defining, settlements, or underwriting. The prime issue insurers face are problems with policy operations and claim processing, along with reporting. A reliable insurance solution must be of help with the above-mentioned problems.
Insurance solutions must
also provide support for the various options including insightful products for
mobile without a doubt.
Depending on
the software’s target audience, there might be a vast difference in features.
However, when talking about insurance solutions, the following features are a
must-have.
1. Built-in Metrics
Insurance
solution software includes profitability indicators like loss ratio, burning
costs, risk cost per policy, net basis, and reinsurance. The built-in KPIs
provide analysis capabilities and advanced reporting out of the box.
2. Claims Activity Monitoring
Software’s can
capture entire claim information that includes claim payments, outstanding
claim reserves, payment components, deductibles, perils and event codes, and
relevant claim activity dates. It provides the claim manager in-depth
information needed to manage and monitor claim activity resourcefully.
3. Lapse and Renewal Calculation
The premiums
and policies that are up for renewal are grouped according to their renewal
date. The system provides information on the analysis of lapses, renewal lists,
and renewal rates comparison. The functionalities draw attention to the
characteristics of insurance products, the behaviour of the distribution
channel, and active marketing and sales support.
4. Insurance Exposure/ Views Of the Sum Insured
Insurance is
not just about claims of cash flow and premiums. Companies must monitor the
risk whether it is in sum insured base or the unit base. Insurance solution
software provides insurers with methods of pre-built calculations and
measurements to monitor and analyse the exposure to underwriting risk on a
gross, retained basis, and reinsurance ceded.
5. Supports Changing Organization Structure
The insurance
solution must support multiple chains of hierarchy and asymmetric
organizational structures. It should provide various scenarios when the
organizational structure changes. It ensures correct reporting of profitability
performance and distribution of sales channels.
6. Time Bases
It must manage
insurance time dependencies with the calculation method and data model. The
insurance software must enable you to analyze insurance information from a
various time perspective, reporting, and providing the framework of analysis to
underwriters, marketing executives, reinsurance managers, claims managers, and
accountants. The system should provide financial accounting analysis,
operational reporting, snapshot reports, and policy inception. The time base
perspective alters the way measurements are calculated, and the
inter-dependencies on them are supported by the system.
In Conclusion
Like any other
industry, insurance solution software
development requires professionalism and excellent expertise. When hiring the
best software solution, the insurance company must have a solid understanding
of the industry’s best practices and regulations.
To get the
best possible result of your initiative, choose Cogitate that has a proven
track record of successful projects. Having worked with the industry leaders,
Cogitate has the experience and skills to help build a user-friendly and modern
mobile and web applications for your insurance business. Cogitate’s Artificial
Intelligence and Machine Learning driven solutions for claims integrate
seamlessly with your existing Claims Management Systems.
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