Policy administration system (PAS) is meant to help insurance carriers – life and non-life insurance carriers by enabling them to operate efficiently so that they will get optimal results. This article emphasizes the need of PAS for insurance companies.
Customer information is a lifeline to any insurance company
Customer’s information is critical to every insurance company. They literally run on customers’ information. Therefore, managing and maintaining the information is the key responsibility of the company. Even a very minor issue in that information will cause an irreversible damage to the reputation of the company.
Software systems to manage records
Earlier, creating, updating and deleting the records was done manually, which was cumbersome because the task was tedious, and required several workers and consumes a lot of time.
Another big challenge for insurance companies at that time was to verify and rectify the mistakes that occur in manual operation. But with the latest developments in the technology, insurance companies started using software packages to operate effectively, and today, they provide better service to customers and save resources.
PAS is an insurance software that manages customer records and do other activities like billing, invoicing, claim settlements, etc. So, it is beneficial for the insurance company to have PAS. It has become essential need for insurance companies today.
PAS is cost effective and error-free system
• PAS could manage high volume of customer records effectively. It reduces paper work involved by electronically maintaining the records.
o ‘Record manager’ of PAS records and saves the information of every new customer. It updates records with timely changes and deletes records as soon as the policy is settled. At the same time, PAS makes sure that no data is lost in the process.
o PAS validates the data of customers as it goes through the workflow, and alerts the company about compliance issues and warnings, if any.
o Effective record management enables accurate functioning.
• PAS provides interface, that is easy for any employee to enter the data or find information to serve customers. Programming skills are not required to work on PAS.
• PAS makes settlements easy. It accurately calculates the settling amount using the stored data.
o Settling claims is a major aspect of an insurance company because any mistake while settlement will damage the reputation of the company. PAS can avoid this all.
• PAS is also capable of doing billing and invoicing activities of the company. It comes with built-in tax calculator, that accurately calculates the tax and do billing fairly.
PAS not only manages and maintains the records effectively, but it also helps in reducing the workload, avoiding loss of data and saving cost for the company by cutting down use of resources.