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Novarica Report: Overcoming the Challenges of Life Insurance Billing

Group insurers are facing several challenges, including a competitive market for group life and voluntary benefits/worksite products, the emergence ...

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Group insurers are facing several challenges, including a competitive market for group life and voluntary benefits/worksite products, the emergence of private exchanges as a new distribution channel and increased agent and customer demands for self-service capabilities. IT leaders at group insurers are looking to modernize their aging core systems to better support rapid product development and increased customer expectations. While interest remains strong in core policy administration system replacement, many insurers are also making plans to update their customer-facing capabilities, including billing systems.

This report presents results from a survey on billing system capabilities at 10 mid-to large-size group carriers that offer group life and voluntary benefits/worksite products. Insurer CIOS and IT leaders were asked about challenges and limitations of their current billing solution, and their perspective of what is important in a future system.

Insurers consider billing to have a great impact on customer experience, but current systems have limitations that include billing inaccuracy and reconciliation issues. Replacing their current billing system is being given priority, especially by those also considering core system replacement. This report provides valuable insight for CIOs facing similar billing system challenges and considering how to address them.