When you go down a checklist of the benefits a new billing system might bring to your company, customer service may not show up very high. But Matthew Josefowicz, manager of Celent's global insurance group, believes insurers need to be aware of all the service levels a billing system provides and not think of it just in terms of pure collections.

He sees a growing awareness of the changing service imperative involving billing in the insurance industry. "If you look at the breakdown of calls that come into a customer service center, a high proportion of them have to do with billing issues," he says. "Anything you can do to increase accuracy, reduce complexity and errors, and give people a better experience with their bills can reduce the call center burden."

Josefowicz is the author of a recent study, "Billing: Business and IT Issues for P&C Insurers." He maintains billing is one of the few opportunities carriers have to touch customers directly, which is important in an industry that has largely indirect relationships with its end customers. He indicates one of the advantages of an improved billing system is as a way to remind customers who you are and that you are providing them a valuable service.