To draw a parallel between biology and technology, policy administration systems (PAS) started out as simple organisms, existing solely as systems of record for the business an insurer writes. Functionality has gradually evolved and become increasingly complex, and so has the definition of PAS, which—depending on whom you ask—may today incorporate rules-based underwriting and workflow, business analytics, underwriting desktops, document management, and external data exchange.
“Over time, the scope of policy administration has grown to the point where some definitions cover nearly all of the core systems an insurer has,” says Donald Light, senior analyst in Celent’s insurance group.
The work that has gone on at these insurers in recent months illustrates several key trends in the commercial lines PAS marketplace. Light identifies those trends as the growth of automation, particularly in new business issuance and underwriting decision support; the proliferation of underwriting and service desktops; the convergence of configurable and content-rich systems; and an increased focus on usability and UI design.
A consolidated view of all the information related to a commercial lines policy has been a key benefit of the Wynsure system to SWIP. “Before, we had this hodgepodge of systems. You enter data here, here, here, and here. Then, if the policy binds, you enter it here, and accounting has to enter it there. When you have those individual pieces, things fall apart occasionally, but there was no way to go to a single place and find out what the problem was. Now, we can pull up data on an insured or prospect and find out everything about them,” Masterson says.