Insurers might hesitate to transform their tech stacks if they think they’re “doing fine, more or less” with their current legacy or modern legacy systems.
After all, if it technically works… why go through the headache?
But while it might not seem like a core overhaul is urgent on the surface, looking under the hood (and at what can’t be done because of technical limitations) tells a different story.
Major operational inefficiencies boost resource usage and total cost of ownership (TCO), and they’ll only become more problematic with time.
Here are some of the biggest inefficiencies caused by outdated core systems — and how EIS Suite™ can help insurers streamline operations for business users, satisfy customers, and boost the bottom line.
With legacy or modern legacy core systems, one main issue is that insurers can’t manage everything from a single, central hub. Instead, they’ve got a patchwork of multiple solutions and databases — both internal and external — adding up to a chaotic whole.
Because legacy core architecture wasn’t built with modern integration in mind, the disconnected systems and the core can’t easily communicate with each other.
Because of this, data gets stuck in silos, and teams can’t freely access what they need without doing intensive detective work for thing like policy coverage limits to properly process claims, billing status, and so on.
By contrast, EIS Suite is built with open architecture and robust APIs. These allow seamless integration and real-time data exchange between internal systems, third-party solutions, and partner platforms. The resulting data fluidity ensures that carriers’ various business units and trusted partners stay on the same page, and that customer service can be truly personalized and real-time.
Consider this example of legacy limitations: A big-name insurer runs on an outdated coure system that makes claims very complicated. Because of the setup, claims processing requires eight people running eight systems (each with extremely out-of-date UI) just to get a claim in the system for evaluation.
Most of that work doesn’t add any real value to the insurer, and just increases cost of operations. Plus, if claims can’t quickly get where they need to go, they won’t get paid on the timelines customers expect. This leaves policyholders frustrated — and wondering if they should switch insurers.
EIS Suite products like ClaimCore® and ClaimSmart™ supercharge claims efficiency: Digital, automated FNOL ensures claims are immediately directed to the right examiners, or expedited for quick resolution if they’re routine. Also, preconfigured workflows eliminate manual tasks (like setting up auto rentals or appointments with property restorers) to reduce claims team workloads.
Legacy and modern legacy tech doesn’t give billing agents convenient access to the info they need because of inefficient architecture and poor integration. For example, if a customer’s bill has to be modified due to policy changes, the employee managing the account won’t be alerted to this for hours or maybe even a day.
In general, they’re stuck relying on too many paper documents and “digitized” but not automated manual processes. Premiums and broker commissions will process more slowly than they should. This means customers who are paid up and brokers who want what they’re owed might either appear as behind on payments or properly compensated when that isn’t true. It’s frustrating for everyone.
BillingCore® by EIS is closely integrated with all EIS Suite modules and other relevant internal or external systems. This ensures real-time availability of accurate data and minimizes error risk across the billing lifecycle. BillingCore also supports a wide variety of billing modes and payment methods, lets billing agents customize invoicing processes, comprehensively documents all transactions, and allows self-service reconciliation.
Carriers may try to avoid a core system overhaul by installing operation-specific point solutions inside their current, outdated core system.
Unfortunately, this band-aid approach is dicey, as it requires delicate, hard-coded integration. That’s resource-intensive and expensive, especially if this becomes a go-to “workaround.” Also, there’s no guarantee these new applications will perform effectively, as they were designed for more advanced operating environments than what older core systems can provide.
EIS coretech avoids this problem. The platform’s open architecture gives you the freedom to easily adopt innovative new tools. Also, EIS Suite is scalable and flexible because it’s cloud-based, so your core system stays updated, evolving in tandem with the organization and market-wide technological advancements.
We’ve discussed just one facet of the problems that legacy core systems cause — and one dimension of why EIS Suite is the future-proof coretech solution for ambitious insurers.
To learn more and see how we compare to competitors in the space like Guidewire, Majesco, Duck Creek and others, read our complete guide: “EIS vs. the Competition.”
The post 4 Major Inefficiencies Caused by Traditional Insurance Core Systems appeared first on EIS.
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