McCamish
Overcoming common challenges in implementing insurance policy administration software
Despite a slow and hesitant start, the finance and insurance industry has now embraced digital transformation. Insurance firms are now relying on the latest technological tools and analytics solutions to speed up the launch of new products, anticipate changing trends to drive innovation, and maximise the value they deliver to various stakeholders. As a result, the global insurance software market is set to grow at a CAGR of 7%, from $3.37 billion to $5.51 million between 2024 and 2031.
Despite this growth, insurance firms still need to overcome many insurance software implementation challenges that they must overcome to see its benefits.
Common insurance software implementation challenges
Despite the process efficiency and optimisation it brings, only a few insurance companies consider the implementation of an insurance policy administration software a success. There are many reasons behind this, from technical difficulties to matters of the team’s mindset, which insurers must understand when navigating insurance software challenges.
Here are nine of the most common issues in insurance software deployment:
High initial investment
One of the first and biggest challenges when implementing an insurance policy administration software is the initial investment, whether money or personnel. Companies often feel the subscription fees are too high, or they do not have enough resources to learn, launch, and administer the software tools. However, once operational and your team has passed the learning curve, they quickly make up for the cost through enhanced efficiency.
System requirements
Without properly understanding the problems they are facing now and the system requirements to overcome them, insurance companies cannot choose features that will solve the existing issues without creating new problems. Asking detailed questions on the “why, what, and how” of the current challenges can help align insurance software implementation with the insurer’s business goals.
Right insurance software provider
No matter how clear your objectives are or if you clearly understand the system requirements that will help overcome your pain points, insurance software implementation cannot succeed without the right insurance software provider. You must look for a software provider with experience in the insurance industry who can offer you ready-to-go solutions and can become your strategic partner.
Intuitive user interface
Transiting to a new system is always a massive step, and, without an intuitive user interface, there can be a significant learning curve that can further contribute to resistance to change. Focusing on building an interface that feels familiar to the users and makes working with the software more convenient can make the transition easy.
Regulatory compliance
Insurance is one of the most heavily regulated industries, and ensuring regulatory compliance with any software solution you implement is non-negotiable. Working with an experienced software provider becomes essential as they can help you navigate the regulatory complexities.
Data migration
Data migration is one of the biggest implementation challenges, especially if you are handling different insurance products across varying periods. If you fail to meticulously plan, execute, and validate data migration, it can significantly impact system reliability and functionality. A gradual transition approach may be best suited to overcome this challenge.
Resistance to change
Resistance to change is the most common challenge when it comes to implementing any new system. Questions like “why make the change?”, “implementation will be too complex”, and “what if we lose jobs to technology?” are common. Getting your team involved in the implementation process, listening to their feedback, and alleviating their worries is the best way to overcome this challenge.
Talent shortage
Insurance companies may have expert teams that are well-versed in industry practices but are not equipped to handle the IT aspects of the insurance software implementation process. This can either put an overwhelming burden on their IT teams or result in sub-par implementation. Outsourcing aspects or the entire implementation process can help overcome this challenge.
Performance monitoring
Insurance companies often fail to identify the right KPIs to monitor software performance, often blaming the new system for any productivity or sales drop. Focusing on KPIs like time taken to complete a task, user adoption rates, error rates, and user-reported issues can help you accurately monitor system performance and make changes as necessary.
Working with the right insurance software services provider can help you overcome these challenges for a successful insurance policy administration software implementation, which can then result in:
- Increased gross written premium
- Lower operational costs for enhanced profitability
- Faster launch of new products
- Swift and agile response emerging market trends
How can Infosys BPM help navigate insurance software challenges?
Navigating insurance software implementation challenges is a complex and nuanced process that the right insurance policy management system provider can help overcome. Infosys BPM offers McCamish’s VPAS®, an all-in-one platform to streamline the management of over 1000 insurance products. Whether your goal is to achieve operational excellence, reduce IT costs, or manage risk, our expert team will not only make implementation easy but also help you overcome common issues in insurance software deployment.