A Complete Guide To ERP for Insurance Companies

4 years ago

The insurance industry in general is a paper heavy environment. Countless administration tasks, forms and contracts mean data accumulation can easily reach breaking point, fast.

An ERP (Enterprise Resource Planning) system is a solution designed specifically for making these tasks (and many more) as efficient as possible.

If you work within the insurance sector and feel you need a system that can help you streamline your processes, then read the following benefits of implementing an ERP system in the insurance sector.

Why Insurance Companies need an ERP?

Most of the large insurance companies have already adopted ERP systems in order to increase productivity through automation. They have also found it to be a useful management tool, since it allows executives to have a panoramic view of the company.

The benefits of the ERP system will be different from one insurance company to another, depending on its unique situation.

Insurance companies seek to improve client service, reduce costs, accelerate innovation, and support business growth. An ERP system can help in all these areas.

Advantages of an ERP to an Insurance Company

One of the most important advantages is that the implementation of an ERP system allows clients and customers to have more personalized service since all the data are stored in one system and can be accessed easily.

It has also been found that companies using ERP implementations do not waste as much time in getting access to data, because everything can be accessed through the right report and no manual work is required.

When implementing an ERP solution, companies will see their employees become more involved when using the system, because their work becomes easier and more efficient. Furthermore, since the company will save time on creating data entry rules, there will be more time for high-value activities.

An ERP system helps with storing documents such as policies and contracts, and information such as market conditions. File cabinets are normally used by insurance companies to store documents. However, there is a risk that these documents could get lost. In case of a fire or hurricane, the company could lose all its files. If your company uses an ERP system, then there is no risk of losing important information.

A well-designed ERP system could result in company cost reductions. The tool allows the reduction or elimination of employees responsible for repetitive tasks, since all data is stored and can be accessed directly.

Another advantage of an ERP system is that it unifies information available within the company. Before using the ERP system, different departments of the company would have data stored in isolated databases. An ERP system allows this information to be available to everyone within the company and helps reduce data silos.

ERP systems provide insurance companies with a convenient tool to track work flowing from one person or department to another. Information is easier to find and is more organized. When using an ERP system, everything is connected and can be accessed instantly.

ERP systems allow companies to perform global operations. For example, if a company has offices in various countries then the ERP system will make it easier for specific offices to communicate and exchange information.

Another advantage of an ERP system is that the data entered against a particular client is automatically stored in all the offices that have access to the system. This is convenient since all the insurance agents will have access to the same data.

An ERP system can be a useful management tool since it allows executives to have a comprehensive view of the company. The data are available to the board members and senior managers anytime and anywhere.

ERP systems are easily available for insurance companies as well as non-insurance companies. They are not just for large companies; small companies can also make great use of an ERP system. A lot of companies in the insurance sector have already adopted ERP systems to increase their productivity as well as to have access to all important data in one system.

How to implement an ERP system in an Insurance company?

Any business process should be optimized in order to increase efficiency and enhance business performance. Implementing an ERP system is a huge undertaking and therefore it needs to be planned carefully. It is important to proof the potential benefits of the ERP system by using a prototype system and interviewing the management staff, as well as employees who will use the system on a regular basis. It’s also important to consider the needs of the company and what they want to achieve in general with the ERP system. The costs of implementation must also be considered.

After all planning has been completed it’s important to begin the implementation of the ERP system. As soon as possible the existing environment should be analyzed in order to identify duplicate data. Onboarding needs to be handled and done quickly. Good on board training can make the difference between a successful implementation and a failed one. The implementation team must keep in touch with the staff at all times and also communicate information by topic.

After the implementation the company must test the system thoroughly to ensure that the planning was on the right track. It is important to prioritize and continue with the implementation of the ERP system. It may also be time consuming to get rid of duplicate data. It can be hard to get employees to change habits.

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