Insurance industry software and its types

In order to reduce the time between trading and settlement, many business sectors are adopting straight through processes (STP). Incorporation of STP has facilitated increase productivity with increase in the work efficiency and cost reduction. Insurance industry too has benefited in this way.

For long the Insurance business had its working depend upon labour intensive tasks. Manual processes were involved from policy administration to the settlement of claim. This always led to human error and the room for betterment always existed. Introduction of Insurance industry software has helped in the betterment of the process.

Insurance industry software is a tool that is used to review claim applications, investigate incidents and settle claims as quickly as possible. The software is therefore an integral part of customer relationship management program. The Insurance industry software is also used to detect fraud claims and manage credit risks.

Types of Insurance industry software

Insurance industry software has been customized to meet varied needs of customers starting from providing insurance to small offices to large business houses and also individual insurances. The software is so developed to cater to the different requirements and as such the three types of software that is most used are as follows-

1. Individual health and life insurance software- This software supports and processes a range of products. The primary features of such a software are-

1. 1. Processing of new business.
   2. Supporting underwriting.
   3. Insurance billing
   4. Management and statutory reporting.
   5. Insurance claim processing
   6. Settlement of insurance claim.

1. Group health administration software - This kind of Insurance industry software is used by group insurers. TPA and trusts with many employers too use this kind of software. Enrolment, accounting and compilation, insurance claim processing, customer service are some of the chief features of this software.
2. Worker's compensation insurance software - This insurance industry software supports third party administrators and trusts for self insurance. The software includes features like quotes, policy issuance, billing and accounting, pricing, insurance processing, reporting and claim settlement.

Insurance industry software has actually helped firms in automating the labour based processes which were prone to human error. The entire process starting from insurance purchase to claim settlement has got fast tracked with Insurance industry software.