How to Use Money Saved, Thanks to Insurance Software
Previously, we took a look at how to use time saved thanks to insurance software. We thought it would only make sense to also put down some suggestions of how Insurers and MGAs can use the money they save by using a modern insurance platform. So, let’s get to it.
Reinvest into a Better Insurance Platform
A clear trend towards no-code and low-code platforms in the insurance industry has gained traction. These turn development from a complex and time-consuming coding marathon into a simple process with a fast delivery cycle. Reinvesting into low-code insurance software allows Insurers and MGAs to customise it to their needs even more and scale faster. The benefits unfold throughout the entire insurance cycle - from building and launching products to managing claims and finances.
We talked about how insurance software helps Insurers and MGAs in building and delivering insurance products in our previous blog post. Let’s talk more about value creation in claims and finances.
Most claims handling software on offer tends to be either monolithic or microscopic, failing to address the needs of Insurers and MGAs at optimal level. Legacy claims systems fall short of expectations towards out-of-box solutions and quick roll-out. For agile software, Insurers and MGAs can buy a licence and start using it right away, which is impossible for monolithic systems that require an implementation time of over half a year.
Insly’s solution is designed to sit in the sweet spot, right in the middle of the marketplace. It’s a cost-effective claims management tool with no huge outlay, yet still delivering a full package of services. It will work seamlessly with other Insly modules, such as the product builder, underwriting, accounting and reporting to bring you more value and efficiency by acting as a one-stop shop. It can also operate as a standalone claims handling system or integrate into your existing stack.
Reduced claims handling costs are supported by all features of Insly’s claims product, such as FNOL, reserving, payments, reporting, fraud checks, and integrations. These features help you reach a new level of speed, simplicity, and security. With a streamlined claims management process in place, underwriting itself becomes easier, as well as unlocking countless opportunities to improve not only customer satisfaction and retention, but your bottom line too.
Speaking of accounting, Insurers and MGAs can achieve savings thanks to better insight into business performance, which is essential for managing a profitable portfolio. For example, Insly insurance software drives this with advanced reporting possibilities that allow granular reporting per object, risk, capacity provider, or distribution channel which is essential for any Insurer or MGA.
To keep track of your finances, instant revenue recognition is also a crucial aspect. Insly insurance software enables you to do that through a double-entry ledger – as soon as a policy is issued, the ledger entries are created. This way, you can recognise the revenue as it happens. You don’t have to wait until the end of the month, when transactions with insureds, Brokers, or Insurers are done, to know how much you made.
Another area where cost savings can come from is reduced human errors. For example, Insly supports this by automatic invoice creation based on policy ledger entries – a wrong invoice simply can’t be issued. To verify whether entered data is correct, you have the double-entry ledger, which acts as a control mechanism. This removes usual rounding errors and unowned cash. You can’t lose a penny, because all money in is linked to the relevant party’s account balance, so there is no unallocated cash. The headache from partially paid and overpaid invoices is significantly reduced by prepayment balance and ledger entries to customer or Broker accounts.
Streamline Operations and Resources
Investing additional money saved thanks to insurance software into streamlining operations and resources lays grounds for increased performance. How can Insurers and MGAs achieve that?
By using low-code insurance software such as Insly, you don’t need to hire developers for building and delivering products or implementing changes. Your team can do it in-house instead of hiring an IT partner for each update. This makes product building accessible to non-tech people and saves on development costs.
It also opens up internal resources that you can use for additional value creation, instead of handling standardised or routine tasks. At the end of the day, you’ll need less administrative staff. Concentrating on process efficiency can result in increased sales. For example, you can transform the quote and bind flow down to 4-5 simple steps, instead of the time-consuming struggle it used to be.
Back-and-forth emails from brokers, double-keying risk, policy, and price information, navigating between spreadsheets to calculate premiums – does that sound familiar? All of this is a common part of a commercial Underwriter’s daily routine. Whereas using automated flow for risk submission or calculating premiums and producing quotes brings efficiency gains and cuts operational costs.
Get Involved in Charity, CSR, and Become Sustainable
With extra finances achieved thanks to using insurance software, Insurers and MGAs can do good and start thinking of their environmental and societal impact.
Recently, the discussion on sustainable business models is becoming more and more important. That includes how your internal processes are built, what the impact of your business activities is, how environmentally-friendly your partners are, etc. That reveals itself in ethical business principles, ESGs and SDGs that you follow. Taking the money that Insurers and MGAs save thanks to insurance software and putting it to work for a greater cause creates a way to give back to the society through either donations and charity, CSR, or sustainability.