Standardization in Insurance Automation: Why It Matters

Standardization plays a crucial role in successfully implementing insurance automation for insurance wholesalers, carriers, and managing general agents (MGAs). But what exactly is standardization, and why is it important to you? Read on to find out.

What Is Standardization in Insurance Automation?

Automation in the insurance industry involves the integration of software that is capable of streamlining various applications and processes. As a result, wholesalers, carriers, and MGAs can enhance their operational efficiencies, improve accuracy, and shorten turnaround times.

Standardization in insurance automation is the process of creating a uniform set of rules, procedures, and formats for specific tasks and ensuring that they are executed consistently across a company. When a company implements automation software, having standardized procedures ensures that the same rules and guidelines are followed consistently throughout its operating system.

Why Insurance Automation Standardization Matters

Standardization is considered the backbone of successful insurance automation. Here’s why:

• Greater Efficiency
  Because standardization ensures consistent practices, automated systems can execute repetitive tasks faster when they operate within a uniform framework.
• Reduced Errors
  Implementing standardized processes helps minimize variations and reduces the likelihood of manual and machine errors when entering data, managing accounts, submitting policies, etc.
• Improved System Interoperability
  Wholesale companies and MGAs often work with multiple insurance carriers. Standardization ensures that data formats, communication procedures, etc., are consistent across various systems, allowing them to communicate and exchange information seamlessly—and do so with greater accuracy.
• Improved Compliance
  Standardized practices help meet regulatory requirements by ensuring compliance with legal obligations, industry standards, and best practices. Programming automation systems (so they are in-line with these standards) can help reduce the risk of being found in non-compliance.
• Greater Cost Savings
  Streamlining processes and ensuring consistency reduces the need for many manually performed tasks, helps lower error rates, and minimizes operational costs.
• Smoother Data Exchanges
  Standardization in insurance automation provides a uniform format that enables a smooth and consistent data exchange between all stakeholders.
• Improved Customer Service
  Brokers expect prompt service when interacting with wholesalers and MGAs. Standardization enhances customer service by providing quicker responses, accurate info, etc., based on standardized workflows.
  
  

Takeaway

When considering insurance automation, wholesalers, MGAs, and carriers must prioritize standardization. By implementing set standards, they can ensure consistency, quality, accuracy, and interoperability across various systems, products, and services.

About Surefyre
Surefyre is a highly configurable insurance automation platform and agency portal focused on digital distribution and automated workflows. Our easy-to-implement process can integrate with almost any platform, from legacy systems to top-of-the-line programs. Our codeless integration platform makes your life easier by automating the submission, rating, quoting, and binding process for all P&C insurance products.

To learn more, contact Blake Wallace, Account Executive, at bwallace@surefyre.co or 239-405-4337.

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