Need for policy administration system (PAS) for insurance companies

Policy Administration System (PAS) is intended to help insurers – life and non-life insurers – operate efficiently so that they achieve optimal results. This article highlights the need for PAS for insurance companies.

Customer information is a lifeline for any insurance company

Customer data is critical to any insurance company. They literally run on customer information. Therefore, managing and maintaining the information is the main responsibility of the company. Even a very small problem in that information will cause irreversible damage to the company’s reputation.

Software systems to manage files

Previously, creating, updating and deleting the records was done manually which was cumbersome as the task was tedious, required multiple employees and time consuming.

Another major challenge for insurance companies at the time was verifying and correcting the errors that occur with manual operation. But with the latest advancements in technology, insurance companies started using software packages to operate effectively, and today they provide better service to customers and save resources.

PAS is insurance software that manages customer data and performs other activities such as billing, invoicing, claims settlements, etc. So it is beneficial for the insurance company to have PAS. It has become an essential need for insurance companies nowadays.

PAS is a cost-effective and error-free system

• PAS was able to effectively manage a large number of customer files. It reduces paperwork by keeping records electronically.

o PAS ‘Record Manager’ registers and stores the details of each new customer. It updates records with timely changes and deletes records as soon as the policy is settled. At the same time, PAS ensures that no data is lost during the process.

o PAS validates customer data as it moves through the workflow and notifies the company of compliance issues and alerts as appropriate.

o Effective records management enables accurate functioning.

• PAS provides an interface that allows any employee to easily enter data or find information to serve customers. Programming skills are not required to work on PAS.

• PAS makes checkout easy. It accurately calculates the sedimentation amount using the stored data.

o Claims handling is an important aspect of an insurance company as any error during settlement damages the company’s reputation. PAS can prevent all this.

• PAS is also able to do billing and billing activities of the company. It comes with a built-in tax calculator, which calculates tax accurately and bills fairly.

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PAS not only manages and maintains the records effectively but also helps in reducing the workload, preventing data loss and saving costs for the company by reducing the usage of resources.