How insurers can unlock new markets with Socotra
November 1, 2021
Many insurers are committed to delivering quality products and first-rate services. However, a lack of investment in technology can result in manual and time-consuming processes for writing and maintaining policies that increase expenses, reduce productivity, and create a high barrier to growth.
For example, many insurers rely heavily on broker referrals to generate revenue. But the high cost of policy management means that insurers can’t write smaller policies or support brokers who don’t sell enough policies to meet annual requirements for gross written premiums (GWP). These insurers simply can’t afford to go after new markets, such as small to medium-sized enterprises (SME), unless they adopt technology that can help reduce policy management costs by automating transactions, reducing manual intervention, and improving the broker channel.
At Socotra, we’re committed to turning disruption into opportunity by creating new value propositions for insurers, customers, and agents. We believe that insurance technology should be transparent, flexible, and accessible. In this post, we offer three steps that can help insurers leverage modern technology to reduce costs and unlock new markets.
Step 1: Get to market faster with an affordable, flexible core platform
The first step in selecting a new core platform is to conduct a proof-of-concept project to assess product fit, flexibility, control, updates, and total cost of ownership (TCO).
Many insurers decide to partner with Socotra because our modern core platform allows insurers to launch multiple products in multiple geographies with streamlined processes. When considering TCO, Socotra is commonly the most profitable alternative with millions saved on implementation costs.
Getting started with Socotra is easy, as we are the only core system provider offering free trials, as well as functional and relevant proof-of-concept projects that can demonstrate value in just two weeks. While traditional insurance platform implementations typically require a large roll-out team of 50-70 people and can last for years, Socotra empowers companies to launch products three times faster with much smaller in-house teams.
Step 2: Streamline and automate processes to reduce costs
Socotra accelerates the speed of implementation with open documentation and APIs, which make it easy to integrate multiple broker systems. With Socotra, insurers can leverage existing systems to create straight-through processing (STP) that provides quotes and writes policies without human intervention.
This completely automated, end-to-end process drives operational efficiency and reduces costs by cutting down on time-consuming manual tasks and empowering independent agents to self-administer business.
Step 3: Expand the broker network to tap into new market opportunities
Leveraging Socotra’s ability to support automation will change the face of business for insurance companies. It will open doors to small business opportunities and brokers with lower GWP while lowering the insurer’s cost per policy.
Increasing the number of policies that go through STP will help drive down expenses. With a lower cost structure, insurers can support brokers with lower annual GWP. In turn, insurers can increase the number of brokers they work with. With an expanded broker network, insurance companies can win new business and increase market share. Socotra recently helped a 300-year-old insurer automate processes and broaden its broker network. The company now projects annualized revenue growth of 27% over the next five years.
Powering the modern insurer with Socotra
Socotra is the modern, enterprise-grade core system that enables global insurers to accelerate product development, reduce maintenance costs, and improve customer experiences.
With Socotra, insurers can give underwriters greater control over policy attributes. Our flexible data model allows insurers to update product definitions—including pricing, underwriting limits, reserves, and more—without re-coding or product overhaul. These product changes take minutes, not months on our platform.
Take the first step in modernizing your insurance business and unlocking new markets by requesting a 30-day free trial of Socotra today.
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