AI 1920x800

Unlock the potential of AI and analytics engines with a modern PAS

Article


Another great Connected Insurance conference this year! It was a unique opportunity to reconnect with industry leaders and learn what experts are thinking about the real theme of the event: unlocking the future potential of the insurance industry.

I sat in on a number of really good sessions focused on how can organizations can become even better at understanding their customers using AI and analytics engines.

Outside of those sessions a lot of the discussion centred on the tremendous potential of AI and analytics engines to increase speed-to-market, anticipate trends and emerging customer needs, as well as providing enhanced digital experiences for advisors and clients that are more personalized, faster and deliver far more value than has ever been possible before.

Data is the new oil

All of these promised benefits, however, are contingent on one critical element—data. Data is the new oil, the valuable resource that fuels analytics engines.

But, without easy access to huge volumes of it, AI and analytics engines can’t get out of the driveway, let alone provide the business insights insurers are looking for to remain competitive in the evolving insurance market.

The good news is, insurers have data. They have almost nothing but data—especially the traditional insurance companies, who have been around for decades, and are warehousing millions and millions of client files, policies, agreements. That’s an entire universe of data points to feed their analytics engines.

Legacy systems are a roadblock

The challenge for those same companies is that many are still running 20-30 year old legacy policy administration systems. And, although these systems have been patched and upgraded over the years and are still able to process existing business, they are a roadblock when it comes to harnessing the power of AI, analytics and digital solutions that enhance customer experience.

Insurers still relying on legacy systems will struggle to leverage data and analytics to produce business insights that will drive their organization forward in the future.

That’s because most legacy systems have a closed architecture—data gets siloed within them. They can’t interface with the insurance APIs that make it possible to easily move data to advisor and client portals, eApps, illustrations and analytics engines.

Although many of the presentations I attended stressed the future potential of AI and analytics, many of the discussions I had with executives had a more historical bent. Insurance executives are bought in to the benefits of harnessing emerging tech going forward, yet they also realize that yesterday’s infrastructure is not going to work.

Step one is getting off those core systems developed and implemented decades ago.

Modern Policy Administration Systems enable the AI/Analytics revolution

Life insurance leaders realize that capitalizing on the immense opportunity provided by AI and analytics means replacing the legacy core systems which hold their data hostage with modern PAS that can push data out to the business intelligence engines as needed.

These new gen systems enable straight-through processing, provide real-time accessibility to high-quality data and can interact with APIs to deliver that data to the AI and analytics engines.

The end product:

  • Better reporting
  • Faster reaction to regulatory and market changes
  • More targeted products
  • Better and more tailored communications with clients leading to higher conversion and satisfaction
  • Enhanced digital, omni-channel self-service capabilities for clients and advisors

Wrap up

In the presentations I attended the underlying, but critical, message was the importance of capitalizing on one of the key strengths of your company — the vast volumes of historical client data—to feed AI and analytics engines and generate ground-breaking business insights and intelligence.

And, in the discussions I had on the conference floor much of the talk was about the idea that freeing that historical data means replacing the historic infrastructure it is stored in.

Big data, and the insights it makes possible, promises a bright future for insurance companies and their customers. The journey to realizing that promise starts with state-of-the-art policy administration systems that will revolutionize operations today and be the platform for AI and analytics advances tomorrow.

Related Articles

insurance policy administration software

Policy Administration System

Seguros Banorte S.A. de C.V., Grupo Financiero Banorte, chooses Equisoft and Oracle to modernize its cloud-based policy administration processes

Equisoft, global provider of digital solutions for companies in the wealth management and insurance sector, announced that it has been chosen by Seguros Banorte to modernize the company’s policy administration processes and support its life insurance line.
Read Press Release
AITE Group Life Insurance Claims Vendor Report in North America

Policy Administration System

Aite Group Gives Highest Mark To The Oracle/Equisoft Stand-Alone Claims Solution

The stand-alone claims solution offered in partnership by Oracle and Equisoft has been recognized and awarded in a recent Aite Group Impact Report evaluating the competitive position of vendors offering stand-alone claims systems to the US Life insurance industry.
View Research
Admin ajax 1 NOV EN

Policy Administration System

Digital and New Business Capabilities are Driving Mid- to Large-Size Life Insurers’ Modernization: Novarica CIO Study

In a new research report underwritten by Equisoft, Novarica presents the findings of an interview series conducted with mid-to large-size US life insurance carriers to identify the key drivers for policy administration system modernization projects
Read Press Release