“If your policy data still lives on one system while your adjusters struggle on another, you’re paying a hidden ‘silo tax’ every single day.”
As insurers lock in their 2025 tech budgets, many still accept operational inefficiencies as the status quo. Disconnected systems translate to redundant tasks, frustrated staff, and avoidable errors.
Here’s the case for bridging the gap between policy and claims with connected solutions that don’t require ripping out your existing core systems.
The Hidden Cost of Split Systems
When policy and claims systems don’t communicate, you pay in real dollars and time.
Carriers with siloed systems experience up to 30% higher Loss Adjustment Expenses (LAE), according to a McKinsey study.
A regional carrier saw cycle times increase by 18% simply because policy updates were slow to reach claims. Adjusters had to manually re-key policyholder data, resulting in errors and reopen rates.
A related read on how disconnected systems can rack up costs: Streamline Your Claims Workflow: Integrating AI with Adjuster Expertise.
What Modern Policy Administration Software Should Deliver
Next-gen policy administration software is the cornerstone of efficient insurance operations. It ensures seamless information flow into downstream systems, including claims.
Capabilities to expect:
✅ Real-time sync of endorsements and cancellations with claims
✅ Built-in rating logic to reduce human error
✅ Instant premium change updates — no email trails
✅ Audit-ready records across policy updates
Learn more in Streamline Your Policy Lifecycle: The Role of Automation in Policy Administration
Where Claims Automation Tools Take Over
Once policy data flows freely, claims automation tools take the baton:
🔁 Touchless Claims: AI routes claims directly or triages them to the right adjuster
📲 Instant FNOL Verification: Real-time policy lookup validates coverage
📡 Smart Feedback: Claims data feeds back into pricing models
⚙️ Adjuster Empowerment: Less time on data, more on decision-making
“We reduced claim cycle time by 22% just by eliminating double data entry,” says a Terra client.
Why does automation matter? See Insurance Claims Management: 10 Benefits of Cloud Technology
The Convergence: A Unified Claims Management Process
Transformation happens when policy and claims systems integrate into a unified flow.
Imagine:
- An endorsement is processed…
- Auto-updates into claims…
- Notifies stakeholders in real-time…
It’s not futuristic — this is today’s reality. Platforms like Terra’s Connect Marketplace make this possible
Checklist: Are You Ready?
| Question | Yes/No | Action |
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Do your adjusters re-key policy data? |
Explore Terra’s open APIs
| |
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Are filings double-handled? |
Automate with Terra Connect
| |
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Is claim-cycle time above average? |
Benchmark via our calculator
| |
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Do adjusters lack FNOL context? |
Sync policy + claims data
| |
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Is IT swamped by integrations? |
Try low-code/no-code tools
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ROI Snapshot
Hard ROI:
- 12-month payback
- 25% reduction in claim cycle time
- 30–50% fewer manual entries
Soft ROI:
- Happier adjusters = lower churn
- Faster settlements = higher NPS
- Audit-readiness = less regulatory stress
Want to see benchmarks? Check out Proven Success in Claims Management: Metrics That Matter for CEOs and Risk Managers
Lock in 2025 Gains
Enough patching. Let’s transform. Book a 20-min discovery call to lock in 2025 pricing.
