#Insurace providers should ST⛔P relying on internal IT and software development teams to create and update #BusinessRules

Insurance runs on business rules that frame decisions in a multitude of daily operations in #Underwriting, #Pricing, #Claims, #Verification, #CustomerEngagement, #UpSelling, #CrossSelling, #ProductLaunch, #ProductConfiguration, #Audit #Compliance, #PolicyAdministration and more… yet managing business rules is not what they seem to care.

⚠️Every small or large change in business rules will require changes in #BusinessProcess #Workflow #RPA bots, custom-built systems, applications, and portals.
1️⃣ Business rules are spread across organizations' processes and systems; therefore, changing them requires a lot of efforts
2️⃣ Applying change requires technical coding skills, which is not even feasible for a junior developer; it requires senior developers
3️⃣ Changes require the re-deployment of applications, processes, and systems #DevOps
4️⃣ There are yet other sources of business rules that are sitting in Excel files that cannot be updated

💥If you ever needed to deal with any type of insurance in your life, you know what are the implications and issues with this, but let me list them here as well:
🔸A large amount of inconsistencies (5X more than expected) in underwriting
🔸Way too many calculation errors in claims (30% error rates)
🔸Delay in responding to inquiries and requests in claims and underwriting

💥Those are just a couple of top challenges from policyholders' viewpoint; the insurers have their issues:
🔸Compliance and fines challenges (and in some cases lawsuits)
🔸Reputation damage
🔸Lose of the market share to alternatives (no insurance or competition)

💥If these are not enough for #insurance providers to do something, what is it? Do insurance providers care about customer dissatisfaction at all? Reports show:
🔸41% of clients are willing to change insurance providers
🔸69% lack trust in insurance providers to process claims correctly
🔸50% increase in companies in comparison to the previous two years
🔸76% raising complaints of claims delays

💣There has to be a better way for insurance providers than maintaining status queues! That's the Decision-Centric Approach® #decisioncentric in conjunction with the #DecisionIntelligence Platform (DIP) https://buff.ly/43CYKsd that empowers them to make Quick, Accurate, Consistent, and Transparent business decisions (Quick ACT™).

#insurtech

Posted here.

Published April 2nd, 2024 at 07:30 am