The Legacy Lag: Why Carriers Can’t Keep Spinning Plates
“If your tech still runs on spreadsheets, you’re leaking margin.”
It’s 2025, and 80% of P&C insurers still process claims and policies in disconnected, legacy systems. Many rely on outdated spreadsheets or siloed tools. That tech debt has consequences:
- Double data entry inflates overhead
- Slower settlements frustrate customers and agents
- Audit risk grows with every manual handoff
The reality? Insurers with unified digital systems outperform laggards by as much as 42% in claim closure speed and 28% in loss-adjustment expense (LAE), per industry benchmarks.
The stakes are clear: disjointed stacks kill efficiency. To compete, you need a connected core.
Building the Digital Spine: 5 Non-Negotiables in Policy Administration Software
Your policy admin system isn’t just plumbing—it’s your digital spine. Whether issuing policies or adjusting claims, every downstream action depends on the strength of your core platform.
Here are 5 critical capabilities your next-gen policy administration software must offer:
1. Cloud-Native Architecture
Eliminate costly upgrades and scale on demand. See how cloud-native design strengthens security and reliability in our post on cloud technology in claims management.
2. Open API Ecosystem
Enable integrations across CRM, billing, rating, and fraud detection.
3. Real-Time Billing & Endorsements
Keep your agents and underwriters aligned without delays.
4. Rule-Based Automation
Automate renewals, cancellations, and mid-term changes.
5. Embedded Analytics
Deliver insights directly inside workflows to drive smarter decisions. Learn how analytics drive decisions in this guide to insurance claims analytics.
Pro Tip: Vendors that can’t demonstrate a working API during a live demo are already behind.
Straight-Through Settlement: Let Adjusters Focus on What Matters
Today, a typical claim involves 12+ manual steps. That includes FNOL intake, coverage verification, duplicate data entry, document chasing, and more.
Modern claims automation tools cut that to just 3–4 touchpoints, enabling:
✅ Faster triage with AI-enhanced FNOL
✅ Automated coverage verification using policy metadata
✅ Intelligent routing to the right adjuster based on severity
Automation doesn’t mean dehumanization. Adjusters get to spend more time on complex cases where their expertise adds real value.
Use Case:
A mid-sized auto carrier using Terra’s claims automation saw:
Reduction in
cycle time
Drop in
LAE
Straight-through
processing (STP) *
* On low-complexity claims.
For a deeper look at automation’s real-world impact, explore how Terra drives operational efficiency in claims.
Closing the Loop with Policy Automation Software
When your policy automation software is disconnected from claims, you miss out on massive gains:
- Delayed fraud detection
- Coverage misapplication
- Inconsistent customer experiences
When your policy automation software is disconnected from claims, you miss out on massive gains:
- Flag suspicious patterns in real time
- Reduce leakage by applying the correct terms
- Automate recoveries and subrogation opportunities
Want to see how policy lifecycle automation improves efficiency? Check out this in-depth post.
Blueprint: A Unified Claims Management Process That Works
You’ve seen the pain of legacy and the promise of modern tech. Here’s your 4-step playbook to go from chaos to clarity:
🛠️ 1. Integrate Your Data
Connect policy, billing, claims, and third-party data sources via open APIs.
⚙️ 2. Automate Smartly
Start with low-complexity claims and policy renewals to prove ROI quickly.
📊 3. Benchmark Relentlessly
Track KPIs: claim cycle time, STP rate, adjuster efficiency, fraud catch rate.
⟳ 4. Iterate & Expand
Refine automation rules, add integrations, and move up the complexity ladder.
Example: using Terra’s Connect Marketplace, one regional carrier launched STP across home and auto lines in under 90 days.
From Chaos to Clarity: Let’s Get You Live, fast
Ready to see what a unified, automated insurance backbone looks like?
✅ No setup fees
✅ Go live in weeks, not months
✅ Only pay when you’re live
