Insurers rely on an enormous amount of data in today’s digital world. Over the past decade, advancements in technology have transformed the abilities of core systems for insurance. From cloud-based architecture to integration with third-party solutions, the possibilities for insurance carriers to grow are endless.
Insurance carriers sometimes develop core systems in-house, building an ideal solution as the company grows. Over time, these systems tend to fall behind analytics advancements and face constraints in data storage and accessibility.
WaterStreet Company offers cloud-based Policy Administration for P&C insurance, designed by insurance experts for insurance experts.
The Core Insurance System
A Core Insurance System is much like the brain of the insurance carrier. It’s a sophisticated software program that helps the company manage all important aspects of the business. Each part of the solution helps to support roles within the company as data is collected and visually interpreted for simpler top-level decision making.
There are six components that make up a core system.
1. Policy Administration
The Policy Administration component handles the management of insurance policies. It keeps track of who has a policy, what it covers, and when it starts and ends. It helps the insurer handle tasks such as creating new policies, updating existing ones, and making sure everything is properly documented.
2. Claims Management
When a policyholder needs to use their insurance to file a claim, such as a car accident or a house fire, Claims Management of the core system comes into play. It helps the carrier manage the entire claims process, from receiving a claim to assessing the damage or loss, and finally, making payments to cover the costs. Loss reserve management helps balance loss expense payments, giving the carrier’s accounting team deeper visibility into costs.
3. Underwriting Management
Underwriting within the core system manages risk evaluation and factors behind pricing policies. It considers various factors behind a policyholder’s profile, such as the person’s age, driving record, or the history of the insured property. By analyzing and simplifying these details, analytics for underwriters helps the company efficiently determine the appropriate premiums and ensures the company remains competitive.
4. Billing and Accounting Management
Billing and Accounting helps the insurer keep track of the company’s profits and expenditures while following regulatory compliance. It handles tasks such as generating invoices, collecting payments, and managing premium calculations. It ensures that everyone is paying the right amount for their insurance and helps the company maintain financial stability.
5. Reporting and Analytics
Reporting and analytics within the core system provides powerful data analysis tools. At WaterStreet Company, we provide Business Intelligence to complement our core system, visualizing data trends for simple communication among executives and decision makers. It allows report generation that dives deeper into the company’s data and is important for tracking sales trends, customer satisfaction levels, and claims performance. These insights help the company make informed decisions, identify areas for improvement, and adjust strategies accordingly.
6. Document Management
Here at WaterStreet Company, we embed Document Management throughout our entire core system, tying together workflows and access to files for easy retrieval throughout the policy lifecycle. Document Management is among the most important components of a core system as it brings together internal operations, external partners, and policyholders, calling for fast and robust cloud storage.
5 Steps to Choose the Right Core Insurance System
Choosing the right Core Insurance System calls for team effort. Be sure involve key stakeholders from different departments, such as IT, operations, underwriting, claims, and finance, as they will be directly impacted by the new core system.
- Assess Business Needs: Begin by conducting a thorough assessment of your insurance company’s specific business needs and objectives. Consider factors such as the size of your company, the types of insurance you offer, your target market, and any unique requirements or challenges you face. Identify the pain points in your current system and determine the specific functionalities and features you require in a new core system.
- Research Available Solutions: Once you have a clear understanding of your business needs, start researching available core system solutions in the market. Look for reputable insurance software vendors, such as WaterStreet Company, that offer core systems designed specifically for insurance carriers. Consider factors including the vendor’s industry experience, customer reviews and testimonials, system functionality, scalability, integration capabilities, and ongoing support services.
- Request Proposals and Demonstrations: Reach out to shortlisted vendors and request detailed proposals that outline how their core system can address your specific business needs. Ask for product demonstrations to see the system in action and better understand its user interface, features, and overall user experience. Pay attention to how intuitive and user-friendly the system is, as this can greatly impact your team’s productivity and adoption.
- Evaluate System Integration: Assess how well the core system integrates with your existing technology infrastructure. Determine whether it can seamlessly integrate with your current systems or allows for new data management and replaces your existing solutions Integration capabilities are crucial for ensuring smooth data flow and reducing manual work and data duplication.
- Consider Implementation and Support: Evaluate the vendor’s implementation process and support services. Find out how long it typically takes to implement the core system and whether the vendor provides comprehensive training and support during the transition phase. Additionally, inquire about ongoing technical support, system updates, and the vendor’s commitment to long-term partnership and collaboration.
WaterStreet Company’s Core Insurance System
Founded in 2000, WaterStreet Company offers a cloud-based core insurance system, fully managed on Microsoft Azure cloud services and infrastructure, along with a suite of insurance back-office services to help our clients grow and scale their business optimally with this one-stop-shop approach.
Reach out to WaterStreet Company today to schedule a demo.
