For the past few years, insurance companies have been grappling with the rapid digital transformation of the insurance industry. Increasingly, upgrading to new insurance policy management software from insurtech companies has become a necessity. [1] Some larger P&C insurers are already embracing new technology, but most insurers and MGAs still have not upgraded from outdated legacy systems. As much as 74% of insurers and MGAs still rely on old technology for core functions. [2]
Small and mid-sized insurers and MGAs have been the slowest to streamline their processes, but they may benefit from new insurance software even more than enterprise-level insurers. Not all those who’ve embraced new P&C insurance policy management software have benefited from their upgrades. Only 5 to 10% of carriers are capturing value from their current technology investments because they’ve made poor choices, like trying to build an open-source system. [2]
Certainly, there are legitimate challenges for smaller insurers, like limited resources and worries about regulatory and compliance hurdles. However, an all-in-one P&C insurance policy management software designed for small and mid-sized insurance companies and MGAs is the key to enhancing customer experience, making better underwriting decisions and writing more business without having to squeeze or increase headcount.
This article will explore how Modotech’s ISi employs technology that empowers small to mid-sized insurers and MGAs to thrive and compete with larger carriers without increasing overhead.
The Shifting Digital Landscape for Small to Mid-Sized Insurers
Insurtech disruptions have changed traditional insurance application processing. Machine learning, AI, blockchain and automation are the buzzwords floating around. To satisfy customers and their desire to get fast quotes and find the lowest prices, insurance aggregators have also found a place in the industry, feeding the demand for fast quoting. [1]
Insurtech comes in other forms as well, and while it has disrupted the insurance markets, it is also the solution to compete in the digital insurance landscape. Here are some reasons small-to-mid-sized insurance companies and MGAs need to revamp their insurance policy management software.
The Burden of Legacy Systems
Outdated core technology has limitations and exposes accounts to human errors that arise from manual processes. Time is wasted inputting information in the legacy system more than once. More staff members are necessary if the insurer’s goal is to grow.
Growing an insurance business while chained to a legacy system means a lack of scalability. That’s why a new system with automation is a great solution with a strong return on investment (ROI). A decrease in underwriting turnaround time is what customers expect, and insurtech solutions can help. [3]
Legacy systems also do not allow the user to see accounts from every angle because data visibility is obstructed by silos. It’s also difficult to manage agents and also mask sensitive information from agents on legacy systems.
The challenge has never been that there isn’t enough data, but the handling of it, to extract useful insights to better inform workflows. Building upon an old system will therefore not fix the need to pull and use data more strategically. [2]
Modernizing a carrier’s technology system can mean 3% points in premium growth and a 5% lower expense ratio. Most importantly, modern software adoption can increase customer loyalty score by up to 8 percentage points. [2]
Legacy systems also do not allow the user to see accounts from every angle because data visibility is obstructed by silos.
The Rise of Customer Expectations
Customer experience determines financial and organizational outcomes. [3] Customers want fast quoting and fast resolutions during the claims process. They want to pay their bills online or through an app. They also want clear and omnichannel communication and real-time interactions. Meanwhile, neglecting to offer a personal touch when they want customer support can undermine the relationship and hurt renewal rates. [3]
In the digital insurance landscape, being unable to give an accurate, fast quote may send the customer to another insurer who can serve them right away.
If the customer can’t see their payments or are unable to enter their payment information themselves, they may get frustrated.
Notices, renewals and invoices, cancellations and all other forms of communication need to be accurate, timely and available to print individually or in batches.
Claim payments need to be paid quickly, to prevent escalation, which may lead to lawsuits and/or higher settlements. The claims process is a pain point, a time during which many insurers lose customers due to stalled payments.
Updating core technologies improves speed and accuracy. It also allows for third-party integrations for faster service. Customers will be happy and less likely to change insurers after an inevitable rate increase if all their needs are met. Claims will be paid promptly.
Automation in all of these instances frees up agents’ time so they can foster relationships with phone calls or in-person meetings instead of performing tedious tasks.
Increased Competition
Insurtech aggregators fuel larger carriers with leads of people trying to see if they can beat their current rate. Both aggregators and carriers have massive technology budgets. In most cases, the large carriers have their own quoting engines. Their field agents still buy leads from outside vendors to compete with the agency down the street.
Small and mid-sized insurance companies and MGAs who cannot do their own quoting fast lose their edge in the market, even if they are a niche or nonstandard insurance company or MGA.
Quoting and rating are not the only ways that the digital transformation is improving policy management for insurance companies and MGAs. Attracting and retaining customers with speed and accuracy is how they maintain their edge.
If you’re a smaller insurer, you can have that competitive process too, with a more affordable all-in-one insurance policy management tool, called ISi. See more on ISi below.
ISi, an All-in-One Policy Management Software, Solves Key Challenges
Fits Most Budgets: ISi is affordable compared with similar P&C insurance software available on the market. There is no set price, because fees are based on the scale and complexity of the client’s project. Those who benefit most from using ISi are P&C carriers offering one or two lines of business.
Is Easy-To-Use: A good P&C management software will be intuitive, like ISi, which offers multiple ways to get a single task done with just a click or two. A complex system will be difficult to implement and will require expertise, like coding.
Streamlines Operations: ISi software automates the policy lifecycle, from quoting and binding to endorsements and renewals. Without prompting, ISi automatically creates a new dec page each time you make a change to the policy. Invoices are easy to email or print and mail, one at a time or in batches. Receive reports necessary for underwriting, without ever leaving the dashboard.
Improves the Customer Journey: Features like agent/customer portals, easy payments, self-serve claim filing, mobile access and personalized communication will help retain customers.
Improves Data, Analytics and Risk Management: Integrated analytics provide valuable insights into risk, customer behavior and operational efficiency. Data is easy to view and not confined to silos.
Accelerates Product Launches: ISi’s flexible platform allows for quick and easy launches for new products and bundle deals.
Manages the Entire Lifecycle of a Policy. The carrier and the agent can manage necessary tasks from quote to claim to renewal without leaving the dashboard. Outside reports are generated with a click.
Integrates Well With Other Systems. With ISi, claims admin, billing, risk management information and day-to-day tasks are all available on one platform, where third-party connections and aggregators are all connected.
Offers Customization. ISi is an intuitive interface that can be tailored to the user’s needs. Insurers have different processes, and ISi can be customized to fit a carrier or MGA’s ideal.
Offer Customer Service and Training. Choosing a software provider is an important step in improving workflows in your organization. Along the way, Modotech, which powers ISi offers customer service and training during the onboarding process.
ISi is affordable compared with similar P&C insurance software available on the market.
7 Core Features To Look for in a Competitive Insurance Software Solution
ISi offers all 7 features that are essential for insurers to compete in today’s market, especially if they have a plan to grow. ISi makes growing with lower overhead costs a reality for many small, mid-sized and specialty insurers. All the insurer or MGA needs to run ISi internet software is implementation on-premises or in a cloud environment. ISi will then provide:
Automated Underwriting and Rating Engines
Robust Billing and Payment Management
Full-Scale Policy Administration (Endorsements, Renewals)
Integrated Reporting and Analytics
Seamless Integration
Cloud-Native Scalability and Security
7. Option for On-Premise Installation for More Control
The Implementation Journey of ISi Core Policy Administration System
The ISi implementation journey is a structured progression from client requirements to configuration and integration to testing and deployment to ongoing optimization. Standardized ISi tools and client-specific customization guide these steps:
Discovery and Requirements Gathering
The project begins with understanding the client’s lines of business, states they operate in, forms and billing methods (e.g., direct bill or agent account current). This includes reviewing underwriting rules, workflows, rating logic and any integrations with third parties (like ISO, IVANS, or 1099 reporting systems).System Configuration
ISi’s core setup is table-driven, meaning client-specific parameters are loaded through tables. Configuration includes:Setting up manuals and questions for the application process.
Defining rating variables, billing plans, GL mapping, and workflows.
Setting job schedules for maintenance processes in accounting, invoice and agent balance posting.
Customization and Integration
Custom logic or forms are developed in ColdFusion and Visual Basic include:Attachments automation.
Job chaining for sequential processes such as downloads and imports.
Policyholder Portal “pass-through access” for customer-facing features like payments or document retrieval via tokenized URLs.
Testing and Validation
Unit, integration, and user acceptance testing are performed to ensure that workflows, rates and forms work as intended. This includes validating accounting functions like billing ledgers,, agent balances and refund logic.Training and User Adoption
Training is given to underwriters, agents and accounting staff on modules such as quoting, customer number management and billing. Documentation (like Client Training.pdf) is customized to reflect each client’s implementation.Go-Live and Support
Once validated, the configuration is moved to production, and ongoing support is provided for maintenance job monitoring, data corrections and enhancement requests. Issues may include job sequencing, maintenance startup order or new form compliance (e.g., 1099 changes).Continuous Improvement
Post-implementation, enhancements are tracked through Modotech projects, documentation updates, and ISClientSettings version control, allowing continuous evolution of the system across clients and versions.
A modern policy management system is no longer a luxury, but a necessity to compete against larger insurers. Technology allows smaller players to leverage their unique strengths—agility, customer focus, and specialized knowledge—to win in the market. Learn more about ISi as a solution by clicking on the tab at the time for a free demo.
Sources
- Insurance Thought Leadership. Top 10 Challenges for Insurers.
- Bain & Company. Insurers Can Parlay Technology into a Competitive Edge.
- McKinsey & Company. Elevating customer experience: A win–win for insurers and customers